Question on Car Lease in Maryland

[FNFZ4]

I have a question about leasing a car in Maryland and I cant find the answer hoping my fellow TRFrs can help me.

In Florida (where I used to live) when you lease a car, you only pay state sales/excise Tax for the sum of all payments or the Monthly Payment. Now I know in Texas and New York when you lease a car you pay taxes on the Agreed Upon Purchase Price (which is unfair btw)

Can anyone tell me if Maryland is like Texas or like Florida?

I have 2 leased cars in Florida for the business and when they looked at the Blue Book Value both of them are 0 Because they are 16 and 15s so they want me to pay sales tax on the negotiated purchase price (one is $37,000 amd one is 97k) Just want to know the facts before I shell out a big amount on taxes.

As always, thank you to the TRF community

[GB-man]

Not sure about Maryland as Texas is the only state I know that charges taxes on full price. I live in New York and can tell you they only charge tax on the sum of payments. However it is die upon inception so if you chose to roll it into the payments you also pay the finance charge on the taxes which is a bit draconian. That's why I pay tax upfront. I believe Maryland is similar but do not know for sure.

[Danny83]

In Maryland if you lease for over a year you are tax exempt. You need a Maryland adress to register the car to.

[Rockrolex]

Originally Posted by Danny83

In Maryland if you lease for over a year you are tax exempt. You need a Maryland adress to register the car to.

Danny's correct. We live in MD and have leased 2013 and 2014 Lexus 460s. At no time have we needed to pay sales or any other kind of tax on the leased cars.

[swils8610]

In NY you only pay tax on the sum of the payments/any rebates.


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[Danny83]

Im not sure I understand your question are you still leasing those cars? If they are paid for and you want to transfer you can open an LLC in Montana and register them http://www.bennettlawofficepc.com/faqs.html
I do this to some of my cars.

[FNFZ4]

Ed

went to the DMV to transfer my Lease on the Porsche and the Lexus from Florida to Maryland. Lexus is a 36 month lease and Porsche is a 27 month lease. They want me to pay 6% on blue book lol. Whats going on here?

[FNFZ4]

Originally Posted by Danny83

Im not sure I understand your question are you still leasing those cars? If they are paid for and you want to transfer you can open an LLC in Montana and register them http://www.bennettlawofficepc.com/faqs.html
I do this to some of my cars.

Hi Danny yes I am still leasing them. all I wanted to do was to transfer the tag/registration to Maryland. I didnt know it would get this complicated.

[Danny83]

Register them to a Florida Po box and keep them that way. Then re lease when they are up in Maryland.

[G8RDPM]

Originally Posted by Danny83

Im not sure I understand your question are you still leasing those cars? If they are paid for and you want to transfer you can open an LLC in Montana and register them http://www.bennettlawofficepc.com/faqs.html
I do this to some of my cars.

Great info,Danny!

[FNFZ4]

Originally Posted by Danny83

Register them to a Florida Po box and keep them that way. Then re lease when they are up in Maryland.

can you re lease the car even if the lease are not over? hmmm i didnt know that. I learned something new today. I thought about keeping the registration in Florida but I need to get a florida insurance and it will be more expensive that route in the long run