Personal Property Tax on Leased Vehicles

If you didn’t already know, the following states apply a “Personal Property Tax” on all leased vehicles:

Arkansas, Connecticut, Kentucky, Massachusetts, Missouri, North Carolina, Rhode Island, Texas (haha I always found it funny how when you flip the A and the E in Texas, you get Taxes, LOL), Virginia, West Virginia and Orleans Parish (Louisiana).

Another state that have crummy tax laws is Illinois. I hear they make you pay taxes on the ENTIRE value of the car, not just the depreciation. Talk about unfair.

I always found it hard to find a comprehensive list of states that show how they tax leases. I think it would be a great idea to perhaps start a list. Feel free to chime in with how your states taxes you for your lease.

I know in California, we get taxed for only the depreciation+financing part of our payment on a monthly basis.

Anyone else?

2 thoughts on “Personal Property Tax on Leased Vehicles

  1. Kudos to Dianne from Houston, TX for providing me with the following information about Texas tax laws.

    Vehicles NOT Subject to Standard Presumptive Value Taxation

    * New vehicles
    * Vehicles purchased from licensed dealers
    * Vehicles purchased at a governmental or foreclosure auction
    * Vehicles 25 years old or older
    * Off-road vehicles, such as dirt bikes or all-terrain vehicles (ATVs)
    * Salvage or abandoned vehicles (except rebuilt salvage vehicles)
    * Vehicles sold through a mechanic or storage lien
    * Vehicles given as gifts
    * Even-trade vehicles, when vehicles of equal value are swapped by the owners

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