DMV is combining taxes and tag fees

[NYTiz]

I am confused as to how this works with a leased vehicle. We recently leased a vehicle and the dealer added a monthly tax fee onto our lease payment (the dealer says it is a law in NC). I have spoken with DMV to make sure this is the appropriate way to cover the tax and the woman told me that being that this is a new system (the tax and tag together) things are still being worked out. I also spoke to the county and they told me I will still receive a tax bill.

Is anyone familiar with taxes and leasing a vehicle because I am confused. I have a call into the finance manager to speak with him again about this.

[GCharlotte]

Originally Posted by NYTiz

I am confused as to how this works with a leased vehicle. We recently leased a vehicle and the dealer added a monthly tax fee onto our lease payment (the dealer says it is a law in NC). I have spoken with DMV to make sure this is the appropriate way to cover the tax and the woman told me that being that this is a new system (the tax and tag together) things are still being worked out. I also spoke to the county and they told me I will still receive a tax bill.

Is anyone familiar with taxes and leasing a vehicle because I am confused. I have a call into the finance manager to speak with him again about this.

You're paying the HUT over the lease instead of all at once. Go get your paperwork (I'm betting it's in front of you) and see what the HUT was. Might be listed as sales tax. I'm betting the fee is the HUT divided by the number of months in the lease. Maybe a tad more.

Unless you or the dealer wrote a check to the department of revenue, you are just spreading it out which is typical. Technically you have a choice but I don't think anyone pays the lump sum.

The new system has nothing to do with that. You will still receive a property tax bill in a few months.