anybody know the new car tax rate in DC and how taxes are applied to leased vehicles | FerrariChat
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anybody know the new car tax rate in DC and how taxes are applied to leased vehicles

Discussion in 'Mid-Atlantic Region - USA (PA, DE, MD, DC, VA)' started by potxoli, Jun 7, 2008.

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  1. potxoli

    potxoli Formula 3

    Mar 22, 2007
    1,716
    Washington DC
    Full Name:
    Eric B.
    #1 potxoli, Jun 7, 2008
    I'm getting a new daily driver. Dealer says tax rate is 7%, but I can't find that figure anywhere on the DC tax pages, they just say sales tax is 5.75% and don't say anything about motor vehicles.

    also, I'm thinking of leasing and I'm wondering if DC requires me to pay tax on the full negotiated value of the vehicle or just the financed portion.

    Anyone know? I tried searching for this info on google, but can't find anything conclusive

    thanks!
     
  2. E60 M5

    E60 M5 Moderator
    Moderator Owner

    Jan 2, 2006
    8,152
    Wash DC area
    Full Name:
    Robert
    #2 E60 M5, Jun 7, 2008
    I have only ever leased once and I paid no sales tax. I had my lease thru Navy Federal Credit Union and as a non-profit they do not pay sales tax!!!!!$$$ YAHHOOOOO!!

    Robert
     
  3. potxoli

    potxoli Formula 3

    Mar 22, 2007
    1,716
    Washington DC
    Full Name:
    Eric B.
    #3 potxoli, Jun 8, 2008
    so finally someone in bimmerfest gave me an answer. apparently in dc you pay no tax upfront, but 10% gets tacked on the the payment monthly. Makes leasing pretty attractive if you know you are going to sell the car after a set number of years.
     
  4. maxwell22

    maxwell22 Karting

    Sep 29, 2006
    79
    DC
    Full Name:
    David M Nichols
    #4 maxwell22, Jun 9, 2008
    Right, no sales tax up front, but a 10% usage tax (property tax) added on to your monthly. If you decide to buy the car at the end, it's 6% one-time property tax, based on the purchase price.

    If you have a vehicle registered in another state, and you move into DC, you just pay the $135 registration fee. No tax, no property tax. That saves me about $3500/year on property tax on my porsche! ;)

     

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