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Is there excise tax on a leased car?

If Your Car is Leased cars are still subject to excise tax. ... Normally, if the car is registered in the driver's name, the registration creates an obligation and liability for payment of excise tax upon the driver, not the leasing company.

Is there excise tax on a leased vehicle?

Excise / Property Tax Billed By Your City Motor Vehicle Excise Information PDF Booklet (Click To Open) states: “Leased cars are still subject to excise tax. However, whose obligation for payment is determined by any terms in the original leasing contract.

Do you have to pay taxes on a leased car?

Sales Tax Included in Payment When you lease a car, in most states, you do not pay sales tax on the price or value of the car. Instead, sales tax will be added to each monthly lease payment. ... The lease payment and amount of sales tax will be disclosed on the auto lease worksheet.

Do you pay excise tax on a leased vehicle in Mass?

The vehicle excise tax is unique to Massachusetts and is an annual tax you must pay while you are leasing the vehicle. It is based on the value of the car when purchased and is taxed at a rate of $25 per $1,000 in value.

Why do you have to pay taxes on a leased car?

When leasing, you are liable for sales tax even though you do not own the car. If your state levies a personal property tax, you'll have to pay this, too. But to entice you to lease, many dealers offer to pay the property tax for you.

Can u smoke in a leased car?

Can You Smoke in a Leased Car? You can smoke in a leased vehicle, customer service representatives at car dealers in many states said. ... Burns, holes, and any other blemishes caused by smoking will be assessed and may result in a charge at the end of the lease.

What is leasehold excise tax?

What is the leasehold excise tax? It is a tax paid by persons or businesses who use or lease publicly owned property. Q. A.

Do you pay excise tax on a leased vehicle in Massachusetts?

The vehicle excise tax is unique to Massachusetts and is an annual tax you must pay while you are leasing the vehicle. It is based on the value of the car when purchased and is taxed at a rate of $25 per $1,000 in value.

Do you pay sales tax on a leased vehicle in Massachusetts?

Massachusetts Sales Tax on Car Purchases: For vehicles that are being rented or leased, see taxation of leases and rentals. Massachusetts collects a 6.25% state sales tax rate on the purchase of all vehicles. The maximum tax that can be owed is 575 dollars.

Do you pay sales tax when you lease a car in Massachusetts?

For vehicles that are being rented or leased, see taxation of leases and rentals. Massachusetts collects a 6.25% state sales tax rate on the purchase of all vehicles. The maximum tax that can be owed is 575 dollars.

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