Recently, I moved to Kentucky from Ohio and my monthly auto lease payment with Chase Bank went up by about 8%. How is this possible if the tax difference between each state is only 0.5%?
According to Chase Bank's explanation, Ohio charges full sales tax upfront during the lease process of a vehicle, whereas Kentucky charges a sales tax every month during the life of the lease. In order to get a credit issued, Chase instructed me to take a piece of paper (that they sent me) showing my Ohio purchase details to the Kentucky DMV so that a credit would be issued to Chase, and thus allowing them to lower my payment back down. The DMV does't even acknowledge it, however.
I'm surprised enough of as it is that Chase is making me do all of this work when they have all of the purchase details themselves.
What is the actual process for getting a refund AND my monthly payment back down to its lower amount? I'm fine with a small difference in taxes from state to state, but $30 extra a month is unfair. Was Chase incorrect with suggesting it was the DMV I need to go to? Certainly this has to happen frequently... I'm just not sure why the 2 entities would be in disagreement with each other.