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Tesla Model S Lease with US Bank: $2300 "property tax" fee at lease end?

gdslash

Member
Dec 9, 2018
9
0
Houston, TX
Hi,

My lease on a 2015 Model S 85D just ended and was replaced with a 2018 Model S P100D. First off, when I picked up my new model S, the service center didn't process my old lease properly so I was charged an extra month. Waiting for reimbursement on that matter. However, I just received my last bill from US bank for $395 which is the turn in fee. Relatively understandable. However, I also received another bill for $2300 which is came up as "Miscellaneous" but after speaking with US Bank they informed me that it's a property tax fee. I've leased over a dozen cars in the past and never received any "property tax" fee. Any ideas?
 

ba2002

Member
Jul 3, 2016
491
515
US
I turned in a us bank lease and just paid $395 + $25 in random crap I didn't really pay attention to. Certainly no $2k+ tax.
 

jorobsand

Member
Nov 12, 2017
301
293
Charlotte, NC
Definitely depends on the state. Here in NC, we pay property tax on our vehicles and is something that we owe even on leased cars. It would be based on where the car is registered. But assuming it is registered in TX and TX has no property tax on vehicles, then it could be an error by the bank.

I'd ask them to show you the tax bill. That should be coming to you anyways, not the lien holder.
 

Leeclanual

Member
Dec 15, 2018
376
238
USA
I
Hi,

My lease on a 2015 Model S 85D just ended and was replaced with a 2018 Model S P100D. First off, when I picked up my new model S, the service center didn't process my old lease properly so I was charged an extra month. Waiting for reimbursement on that matter. However, I just received my last bill from US bank for $395 which is the turn in fee. Relatively understandable. However, I also received another bill for $2300 which is came up as "Miscellaneous" but after speaking with US Bank they informed me that it's a property tax fee. I've leased over a dozen cars in the past and never received any "property tax" fee. Any ideas?

I got bit on a BMW lease in TX... in TX property tax only on leased vehicles... some banks add into monthly cost others don’t...
 

Leeclanual

Member
Dec 15, 2018
376
238
USA
I leased two Leafs (in TX) and was never charged any property tax.

Probably because the manufacturer or lease company paid it... do a google search on Personal Property Taxes on Leased vehicles in TX... it really depends on where you lease, what leasing company you use, etc. Up until 2001 all leases had property taxes added... laws have changed and now it depends...
 

ba2002

Member
Jul 3, 2016
491
515
US
Oh sorry, I'm in MN.

Maybe I didn't have to pay that since it cost $1200 each year to renew the registration.

MN has so many taxes disguised as "fees."
 

Mark_T

Active Member
Nov 1, 2017
1,305
1,145
UK
It is probably correct, there is no one simple answer for the whole of TX as it is locally determined, so depending on where you keep the car you may find there is an exemption for a private vehicle not used for business purposes or you may not...
 

Chaserr

Hyperactive Hyperdrive
Sep 5, 2017
2,666
6,523
Logan
Oh sorry, I'm in MN.

Maybe I didn't have to pay that since it cost $1200 each year to renew the registration.

MN has so many taxes disguised as "fees."

For that much money it would be cheaper to incorporate a new company in a state that is more friendly to car owners, sell the car to that company, and title/register the car in the new state.

Look up LLC car ownership, it's common and with those fees will probably save you a lot of money, especially assuming multiple cars. If you already own a business set up in another state the process is halfway done.
 

Mark_T

Active Member
Nov 1, 2017
1,305
1,145
UK
For that much money it would be cheaper to incorporate a new company in a state that is more friendly to car owners, sell the car to that company, and title/register the car in the new state.

Look up LLC car ownership, it's common and with those fees will probably save you a lot of money, especially assuming multiple cars. If you already own a business set up in another state the process is halfway done.

It is never quite that simple...

"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 6.25 percent. Credit will be given for any tax the lessor or the lessee paid to another state."
 

Chaserr

Hyperactive Hyperdrive
Sep 5, 2017
2,666
6,523
Logan
In that situation you the Texan are driving a car leased from another state. In the situation I propose, an entity in Montana or whatever is leasing the car. Texas has no knowledge of it, because the lessee has no Texas presence. The car has Montana plates, etc, and your name does not appear on title, registration, lease paperwork, nothing.

In the US at least, the law is heavily biased to help corporations keep their money. Owning your own corporation allows you to take advantage of these corporate friendly laws because that's the reason they were written.
 

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