Should I pay double sale/use tax for two states (lease, credit)

[CrazyDonkey]

Originally Posted by utran

Thanks for your advice, I only have 18 due monthly pay left, even if I have to pay Washington state 9.8% rate which is 25$ monthly. Total is 450$. I don't think it worth my time and money to hire a lawyer to deal with it.

I doubt Texas will refund me partially, because in common sense, it no reason you bought a item and leave that state after one year then ask them for tax refund. If so, I should ask Washington state refund me whole sale tax after I move out of Washington state.

Sometime the government is evil, they are 'happy' to take money from us in million reason but do nothing on our taxpayer. Damn them.

Call the number I posted and find out the facts. My guess is that Texas will credit you for sales/use tax you have paid in another state (and then refund you that money). They do that for in-coming car leases. You just likely need the proper form to file. They might not credit you for taxes not yet paid, however.

[utran]

Originally Posted by Seacove

If you're just here temporarily, why not use public transportation and leave the car in Texas? All the more reason to return to Texas quickly.

I moved here for job, it's not temporarily, the Washington state law require to register car in 30 days, I already changed my DL to WA

[utran]

Originally Posted by CrazyDonkey

Call the number I posted and find out the facts. My guess is that Texas will credit you for sales/use tax you have paid in another state (and then refund you that money). They do that for in-coming car leases. You just likely need the proper form to file. They might not credit you for taxes not yet paid, however.

I send the email to the Taxes tax department and got a call morning today.
The collector told me Texas charged the sale tax to the vehicle owner which is leasing company, so I am not the right person to ask them for refund. Second, Texas also won't refund the leasing company the sale tax either, since the leasing company bought the car one years ago. It's not use tax, it's sale tax, no way to refund.

Texas said they will recognize the sale/use tax paid to other state when the vehicle brought into Texas and gave me an example when Hawaii registered vehicle moved into Texas, Bala bala bala...

I am not entangled with the money, my hourly pay is higher than 25$. I think the question is funny so I want to post to discuss it.

I did research about the Use tax and sale tax in Washington state, they can only charge either sale tax or use tax but both. That means the leasing company doesn't own the Washington state sale/use tax because the sale tax leasor paid in Texas can against the credit in Washington state.

First questions is very clear, leasor doesn't own tax to Washington state according to 90 days prior rules.

In Texas, I am the lessee, do I need pay the use tax in Texas, let's see the vehicle use taxes definition:

Responsibility for Use Tax
Texas law imposes a use tax on every motor vehicle
purchased outside Texas and brought into Texas for
public highway use by a Texas resident or by a person
who is domiciled or doing business in Texas. If the
motor vehicle touches Texas roads or highways, Texas
use tax is due.

The vehicle was bought in Texas, so I didn't need to pay the use tax since the leasor paid the sales tax.

OK, go back to Washington state use tax definition:

What is use tax?

Use tax is a tax on the use of goods or certain services in Washington when sales tax has not been paid. Goods used in this state are subject to either sales or use tax, but not both. Thus, the use tax compensates when sales tax has not been paid.


The leasor already paid the sale tax for the car, so the use tax should not be applied on the car.



But the trick is If Washington claim I use the car, I have to pay the use tax even if I am not own the car, then I have no stand to argue it.

[PNWGuy]

You lost me 1/4 the way through all that tax mumbo jumbo �� You will get your $25 back just in quality of life, as Seattle > Texas ��

[CrazyDonkey]

Okay, call the leasing company (customer relations?), since they apparently paid the sales tax on the full value of the car and then charged you for your lease-term's share. Ask them to apply for a refund from the state of Texas of the tax on the remaining depreciated value of the vehicle (after your move outside the state), since the vehicle has been permanently relocated outside of Texas. Call the number I gave you and find out which office the leasing company needs to call. Once the leasing company has received the refund, they should pay you the share pertaining to your lease-term (since it is your money, not theirs).

If the person you're talking to says that they can't help you, politely ask to talk to someone who can, like their supervisor, for instance. If they cant help, ask to talk to their supervisor. Don't stop until you find someone who can help.

[sean98125]

Why would there be a refund of the sales tax? The leasing company owns the car, and they will either sell it to the lessee at the end of the lease or they will sell it to someone else. If I buy an iPad in Texas and move here in six months I can't expect a refund of the sales tax. I don't understand why the lessee thinks that they can get a refund.

[Seacove]

Originally Posted by sean98125

Why would there be a refund of the sales tax? The leasing company owns the car, and they will either sell it to the lessee at the end of the lease or they will sell it to someone else. If I buy an iPad in Texas and move here in six months I can't expect a refund of the sales tax. I don't understand why the lessee thinks that they can get a refund.

What do you expect? He's a Texan.

Originally Posted by utran

I want to damn the Washington state, no body should be double taxed, I paid tax in Texas one year ago, how should I owe the Tax to Washington and charge me whole sale rate. If I bought property in other state, when I moved here, do I owe the tax, anybody has common knowledge knows it does't. ...stupid Washington State government! Damn you! you are evil like hell!

Solution for OP is to take I-5 south then I-10 East. Along with leased car.

[utran]

The leasing company(VW credit inc) can not get any tax refund from Texas even if car was relocated out of Texas. I already called Texas tax department got confirm that neither me nor vw credit get refund.

I argue with vw credit inc more than five time calls. what ever the reps or supervisor told me they can not help with this except I go to ask refund from state myself. They claimed as long as gov charge them, they charge me. Nothing they can do.

The only way I think it could works is let Washington recognized I paid the sales tax in Texas according on my contract. Since Washington state defined they only charge either sale tax or use tax, but not both. So that they can not charge me use tax if they recognize the sales tax I already paid and can credit against the sales tax in Washington state.

I will submit a tax ruling request to Washington state after my license changed. Let's see what's happened

Originally Posted by CrazyDonkey

Okay, call the leasing company (customer relations?), since they apparently paid the sales tax on the full value of the car and then charged you for your lease-term's share. Ask them to apply for a refund from the state of Texas of the tax on the remaining depreciated value of the vehicle (after your move outside the state), since the vehicle has been permanently relocated outside of Texas. Call the number I gave you and find out which office the leasing company needs to call. Once the leasing company has received the refund, they should pay you the share pertaining to your lease-term (since it is your money, not theirs).

If the person you're talking to says that they can't help you, politely ask to talk to someone who can, like their supervisor, for instance. If they cant help, ask to talk to their supervisor. Don't stop until you find someone who can help.

[utran]

I am not seeking to get refund for the sale tax.
I am seeking Washington state to recognize the sales tax I already paid in another states which Washington state tax law does so for the car purchased, why not the car leased?

I am not sure if every state recognized the sales tax paid for other states, at lease Texas do and I guess most of states do recognize the sales tax paid in other states to credit against the sales tax in state. That's why you bought goods from other states do not need to pay tax again in state above six months. right?

The problem is even if the Washington state revenue office doesn't publish the detail about how to deal with the leasing car come from other states, but they still need to explain the law on the law itself, not what they think.

Again, Washington state defined the sales tax and use tax can not be charged both together. If they do recognize I paid sales tax in Texas (it's on the contract) and they are no reason to charge the use tax to me again. It's simple logic and what they defined and what they explain are inconsistent.

Originally Posted by sean98125

Why would there be a refund of the sales tax? The leasing company owns the car, and they will either sell it to the lessee at the end of the lease or they will sell it to someone else. If I buy an iPad in Texas and move here in six months I can't expect a refund of the sales tax. I don't understand why the lessee thinks that they can get a refund.

[sean98125]

Okay, I think I understand what happened here now.

Texas is one of six states that requires that the sales tax on a leased car to be paid up front.

The sales tax that OP is paying now is on the amount of the lease payment, and not on the value of the car itself. It's a tax on the transaction.

OP isn't paying tax on the car twice - that tax is already paid. He's paying a tax on the lease payment.