[skimo]

Is anyone familiar with how taxes work when assuming a lease from someone in a different state? I know rules vary depending on the state, so I am mostly interested in an Ohio to Texas transfer.

According to initial research and contact with BMWFS, it seems that taxes will have to be paid on the full value of the car even if they were already paid in full during the original lease recognition @ Ohio. (in Ohio, you pay taxes on the full capitalized value upfront and not on your monthly payments).

2 things dont make sense:
1- this is a lease and the owner is still going to be BMWFS before and after the transfer. Why are Taxes imposed?
2- Taxes are on the full value of the car and not on the lease payments or residual value. They are also required upfront. Thats about a $2800 hit. I think I am getting this part wrong, but when they say "full value", is that the original MSRP or is this the depreciation adjusted capitalized value?

Given that logic, the Gov. will have received taxes 3 times on the full value of this car through-out the life of this vehicle assuming it transfers once. (initial lease ownership, lease transfer and final sale/transfer). But it hasnt changed true ownership!

I really hope I am missing something! I am in the process of talking to BMWFS but wanted to educate myself from this forum too.

Is anyone here familiar with this or has gone through this before? Any room for negotiation with BMWFS?

thanks in advance
Skimo

[vm]

1) It makes sense for the states as they make more money this way
2) see http://www.bimmerfest.com/forums/sho...d.php?t=203967