Lease Buyout

    Posted by MAIA on Aug 15, 2019 12:01:00 AM

    QUESTION

    This question was answered based upon current rules, regulations & statutes in effect on July 24, 2019

    Hope all is well.  If  someone buys out their lease in MA, are they subject to sales tax when they re-register?

    Client advised she had already paid sales tax on the original transaction.

    Thanks

    ANSWER

    Kathy Cormier:  Yes, when you buy out a lease you are purchasing a vehicle.  The sales tax was included in the lease payment, but that was credited for the leasing company for the tax of the vehicle.

    I hope this helps.

     This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: 2018

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