Will NJ charge sales tax on a leased car I bought?


Q. My vehicle was rented through Nissan. At the end of the lease, I took out a loan from a credit union. Nissan signed the title and paid the sales tax. Do I also have to pay sales tax when I present the title to the Motor Vehicle Commission to change the title?

– Driver

A. We have good news for you.

While we all know New Jersey wants its taxes, it will not double taxes on the same item.

Typically, if you buy 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 residents of New Jersey. Sales tax is not collected at the agency for New Jersey dealers, ”he said. “However, if you did not pay sales tax at the time of purchase, you will have to pay sales tax based on the actual amount paid for the vehicle. “

There are exceptions, and that’s what will apply to you.

“As long as the customer has proof that sales tax has been paid, they won’t have to pay sales tax again,” said a spokesperson for the Motor Vehicle Commission.

Email your questions to [email protected].

Karin Price Mueller writes on Bamboo column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Register for NJMoneyHelp.com‘s weekly electronic newsletter.