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I leased a Mazda through Chase Bank in July 2014, living in NJ. I moved to Florida in January 2016. My payment increased from $241. to $258. I was told it was due to tax. Can you explain that to me? I don't trust them and feel as though I should be refunded for the time I spent in Florida. (15 months) Thank you.

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    Have you compared the sales taxes in the two zip codes? You pay sales tax on lease payments rather than on the value of the car in a purchase situation.
    – quid
    Jul 5, 2017 at 18:58
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    When you lease a car in NJ you pay the sales tax up front. In FL however, sales tax is paid on monthly lease payments. Does this mean you get taxed twice? Yes it does. Is there anything you can do about it? Debatable. Remember, your adversary here is not the leasing company but the taxing jurisdiction(s). The leasing company is required to carry out their bidding, they do not profit from tax collection, they may or may not be able to help out with your situation.
    – CactusCake
    Jul 5, 2017 at 19:11

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From state.nj.us:

Property Leased in New Jersey Transferred Out of State

If a lessee transfers property leased in New Jersey out of State, and the lessee paid New Jersey all the Sales Tax at the beginning of the lease, the lessee is eligible for a refund of tax for the period of time that the property is not located in the State.

For example, if you have a three year lease and you move it out of NJ after one year, you are eligible for a refund of 2/3rds of the upfront taxes paid by you to the state of NJ.

To claim a refund, you'll likely need to be able to show the upfront tax payment as a line item that you paid in full as part of your downpayment or "amount due at signing" on your lease agreement.

If it wasn't itemized, there is a possibility that your lessor provided a credit for the full tax amount, which they basically claw back in the form of a slightly higher monthly payment over the term of the lease. If they've done it that way then you won't be eligible for a refund since you haven't directly paid the taxes yourself, the lessor did. Technically they would be eligible to claim the refund for themselves at this point, but the amount is probably less than they care about and it's doubtful they would credit you back anyway.

You should start by asking the NJ division of taxation (contact info in the linked page) how you can apply for sales tax refunds. Hopefully they'll accept an itemized bill of sale (or the lease equivalent) and pay you back directly. Otherwise, you'll have to work with Chase Bank and see if they are able/willing to put a claim in on your behalf.

The higher amount you are now paying in FL is a result of taxes being applied to your monthly payment. Unfortunately there is no way to get out of that obligation.

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I cannot speak to NJ, but auto leases in FL have their sales tax paid monthly. It seems like you live in a county where the tax rate is about 7%.

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