29 Jun Will N.J. charge sales tax on a leased car I purchased?
Q. My vehicle was leased through Nissan. When the lease was up, I took a loan through a credit union. Nissan signed the title and paid sales tax. Do I also have to pay sales tax when I take the title to the Motor Vehicle Commission to change the title?
A. We’ve got good news for you.
While we all know New Jersey wants to get its taxes, it won’t double-tax the same item.
Generally, if you purchase a vehicle in New Jersey, you must pay sales tax and complete the sales tax section stamped on the title, according to the Motor Vehicle Commission website.
“New Jersey dealers are required to collect sales tax for New Jersey residents. Sales tax is not collected at the agency for New Jersey dealers,” it said. “However, if you did not pay sales tax at the time of purchase, you will need to pay the sales tax based on the actual amount paid for the vehicle.”
There are exceptions, and this is what will apply to you.
“As long as the customer has proof the sales tax was paid, they will not have to pay the sales tax again,” a Motor Vehicle Commission spokesman said.
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This story was originally published June 29, 2021.
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