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Who pays the excise tax on a leased car?

Because registrations are in the name of the owner, and the leasing company is the legal owner of a leased car, excise tax bills are issued to the leasing company. Some leasing companies pass on the actual bills to the customer using the car, and other companies pay the excise tax, then bill the customer.

Who pays property tax on a leased car?

If you pay personal property tax on a leased vehicle, you can deduct that expense on your federal tax return. The Internal Revenue Service requires that these deductible “ad valor em” taxes be based on the value of the car, and be charged by the state every year.

Who pays property tax on leased car in CT?

The law does not specify who must pay the tax on a leased vehicle, only that it must be paid to the municipality where it would be paid if the lessee owned the vehicle (Me. Rev. Stat. Tit 36, § 1484 (3)(D).

Do you pay property tax on a leased car in RI?

Leased vehicles are subject to Rhode Island's annual motor vehicle excise tax, which is based on motor vehicle values and locally set rates (R.I. General Laws § 44-34-1). Tax bills are usually billed to the leasing company, according to Providence's tax collector.

Do you pay taxes on leased cars?

Tax laws allow businesses to deduct monthly leasing payments as an expense. But individuals get a tax break, too. In most states, you pay sales tax only on the monthly payments, not the vehicle price. In the Alma example above, you'd owe taxes on about $8,264 in payments rather than the $21,403 vehicle price.

What is excise tax on a lease?

Excise Taxes Before you agree to lease a vehicle, Eaton recommends researching the applicable excise tax rate of the community where you plan to have it registered. The excise tax is calculated based on the vehicle's value, so newer vehicles will have a higher excise tax rate.

Is there excise tax on a leased car?

Leased cars are still subject to excise tax. However, whose obligation for payment is determined by any terms in the original leasing contract. If not addressed, the driver should inquire of the leasing company.

Do you pay town taxes on a leased car?

Who Pays the Personal Property Tax on a Leased Car? In states that levy a personal property tax, you may be paying a percentage of your car's market value to the public treasury. If you're leasing, however, you're not the legal owner and may not be liable. It all depends on the lease agreement that the dealer offers.

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