Question: Can I be taxed twice if I sign a car lease in one state and then move the car to another state?

June 17, 2005

Hello Tony

I currently live in Massachusetts, but will be moving to New York during the middle of August. I am looking to lease a new car. I have been receiving online quotes from car dealers in both MA and NY. The price quotes have been significantly lower in MA than in NY (I am assuming this is due to there being a high amount of dealership competition in the Boston area versus the low amount of competition found in upstate New York).

Are there any advantages and/or disadvantages to signing a lease in one state and then moving the car to another? Can I sign a lease/purchase a car in MA, but register and insure the car in NY (I am still considered a New York State resident if that matters).

I am also worried about being taxed twice, by both NY and MA, on the same car. Can this possibly happen? Any advice and insight you can give me will be greatly appreciated.

Thank you.

Chad

Answer:

Hi Chad,

First of all you will only pay sales tax once no matter how many time you move out of state.

Now, on a lease the vehicle is actually registered in the lease company's name so you don't have to worry about it. Once you move notify the lease company and they will do whatever is necessary to transfer the registration.

You can lease or purchase a car out of state. It happens all the time. On a purchase you simply register and pay sales tax in your home state. On a lease, as I said before, the lease company will figure out where to register it.

All my very best...

Tony Iorio