Leased Vehicle Texas Property Tax

[kgb]

Although there is a thread about some property taxes in Texas and other states, I feel this topic is sufficiently different to warrant a new thread.

I acquired my Roadster using Tesla Motors' "lease until you buy the Model S" program. With my most recent invoice, TM included 2 extra items, which they describe as "property tax 2011 $2,707" and "property tax 2012 $3,549" I had never heard of this property tax. I do know that my business pays a franchise tax on its property. And there is a tax associated with registering the car. I did a little research, and there is something called a "use tax" but that seems to be a one-time tax AFAIK.

Do I owe tax if I bring a leased motor vehicle into Texas from another state?
When a vehicle is leased in another state and the lessee brings it to Texas for public highway use, the lessee (as the operator) owes motor vehicle use tax based on the price the lessor paid for the vehicle. The standard tax rate is 6 1/4%. Credit will be given for any tax the lessor or the lessee paid to another state. See motor vehicle sales tax rule 3.70 for additional information.

FAQ: Motor Vehicle Taxes

Has anyone else been charged these property taxes and does anyone know what this is about? What property tax could this be?

 

[sublimaze1]

Yes. This comes around once a year - typically January - on leased vehicles. Started in 99, IIRC. Seems that Oklahoma had always taxed leased items as property and Texas wanted in on the game. You see, if you own a car, you pay taxes on the full value of the car, albeit once. If you lease, you pay a tax which is less than the TX County Tax Assessor value and they want more of the pie. In fact, it comes around each January as a property. I hated it. Diana gets hit on the Armada, but it is not near as much as what you stated above.

 

[kgb]

thanks for the info. I will go ahead and reluctantly pay it. :cursing: