QuakingLeaf
Posts: 5
Joined: Fri Sep 20, 2013 3:19 pm
Delivery Date: 09 Sep 2013
Leaf Number: 15514
Location: Fremont, CA (East Bay, SF area)

Lease maturity: Disposition Fee + Sales Tax?

Thu Oct 20, 2016 7:47 pm

NMAC statement, at end of lease, indicates Disposition fee ($395) + Sales Tax. Was aware of the former, but not the latter. There is no mention of sales tax, at lease maturity, in the contract either.

I was under the impression that the monthly payment included the Base Monthly Payment + Monthly Sales Tax. If so, why would there be yet another sales tax after 36 monthly payments have been made?

Please enlighten.

Thank you.
2013 Leaf S w/Charge Pkg
240V EVSE Upgrade (high power)
3-yr lease

LeftieBiker
Posts: 6773
Joined: Wed May 22, 2013 3:17 am
Delivery Date: 31 May 2013
Location: Upstate New York, US

Re: Lease maturity: Disposition Fee + Sales Tax?

Thu Oct 20, 2016 8:54 pm

I don't live in Ca, but it's unusual (impossible?) here for sales tax to be collected at the end of a lease. Usually it's collected upfront based on the amount of the lease, with any additional tax only being owed if you buy the car. If you extend the lease, you pay the extra tax per month on the payment.
Last edited by LeftieBiker on Fri Oct 21, 2016 12:47 am, edited 1 time in total.
2013 "Brilliant Silver" SV with Premium Package and no QC, and 2009 Vectrix VX-1 with 18 Leaf cells.

The most offensive, tasteless phrase in use here is "Pulled the trigger." I no longer respond to posts that use it.

RonDawg
Posts: 2651
Joined: Sat Jan 12, 2013 3:46 am
Delivery Date: 11 Jan 2013
Leaf Number: 027089
Location: SoCal

Re: Lease maturity: Disposition Fee + Sales Tax?

Thu Oct 20, 2016 11:07 pm

I do live in California and unless the sales tax laws changed for 2016 (and IIRC it hasn't), all you owe NMAC at the end is the dispo fee and any excess wear/tear charges as determined by the pre-return inspection. I was not charged any sales tax whatsoever.

Also, NMAC will send you a final bill about a month or so after the car is turned in to a dealer. Unless you're buying another car from that dealer at the same time, you don't need to pay them anything.
Blue Ocean 2012 Leaf SV, lost that 1st bar on 11/21/2015 at 26,435 miles.
Lease returned on 12/23/2015. Final LeafStat figures: 225 Gids, 17.44 kWH, SOC 91.89%, SOH 82.36%, 69.49% HX, 54.57 Ahr, battery temp 61.8 F
Now driving a 2015 VW eGolf SEL

cwerdna
Gold Member
Posts: 6963
Joined: Fri Jun 03, 2011 4:31 pm
Delivery Date: 28 Jul 2013
Location: SF Bay Area, CA

Re: Lease maturity: Disposition Fee + Sales Tax?

Thu Oct 20, 2016 11:19 pm

RonDawg's experience was mine as well.

'13 blue Leaf SV w/premium package (owned)
'13 blue Leaf SV w/QC + LED & premium packages (lease over, car returned)
'06 Prius

LeftieBiker
Posts: 6773
Joined: Wed May 22, 2013 3:17 am
Delivery Date: 31 May 2013
Location: Upstate New York, US

Re: Lease maturity: Disposition Fee + Sales Tax?

Fri Oct 21, 2016 12:49 am

I meant to write that owing sales tax at the end is UNusual, of course. I corrected it.

They may be trying to collect tax on the disposition fee, but that too seems to not be the way it's done.
2013 "Brilliant Silver" SV with Premium Package and no QC, and 2009 Vectrix VX-1 with 18 Leaf cells.

The most offensive, tasteless phrase in use here is "Pulled the trigger." I no longer respond to posts that use it.

cwerdna
Gold Member
Posts: 6963
Joined: Fri Jun 03, 2011 4:31 pm
Delivery Date: 28 Jul 2013
Location: SF Bay Area, CA

Re: Lease maturity: Disposition Fee + Sales Tax?

Fri Oct 21, 2016 1:07 am

I was not charged any tax on the $395 disposition fee. It was a straight $395 from the statements I received from NMAC.

'13 blue Leaf SV w/premium package (owned)
'13 blue Leaf SV w/QC + LED & premium packages (lease over, car returned)
'06 Prius

User avatar
LTLFTcomposite
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Joined: Fri Apr 23, 2010 6:06 pm
Delivery Date: 10 Dec 2011
Leaf Number: 5926
Location: Boca Raton FL

Re: Lease maturity: Disposition Fee + Sales Tax?

Fri Oct 21, 2016 3:00 am

Side note, they waive that disposition fee if you buy or lease another Nissan. That along with extra $1k loyalty incentive was a factor in my decision to get the Sentra. It made a cheap car even cheaper from the perspective of expense avoided.
LTL
White 2012 SV delivered 10 Dec 2011 returned 25 Nov 2014 replaced with stopgap ICE Sentra
[35 months] [35K miles] [9 Bars]
2013 Volt replaced after 36 months/30k miles with ICE Rogue

tigolbruck
Posts: 2
Joined: Tue Mar 14, 2017 12:04 am
Delivery Date: 14 Mar 2017

Re: Lease maturity: Disposition Fee + Sales Tax?

Tue Mar 14, 2017 12:10 am

According to a search on-line, there should be NO TAX on disposition fees in the state of California. To paraphrase the law, "we can tax on everything except the following: blah blah we won't tax you on taxes blah blah we won't tax you on fees to refurbish your lease at the end of the lease or the early termination of the lease blah blah." The actual text below (and the link below that), and the bolds are mine.

...
The "rentals" subject to the tax include any payments required by the lease, including amounts paid for personal property taxes on the leased property, whether assessed directly against the lessee or against the lessor, but does not include amounts paid to the lessor for:

(A) Collection costs, including attorney's fees, court costs, repossession charges, and storage fees; but tax does apply to any delinquent rental payments, including those collected by court action;

(B) Insuring, repairing or refurbishing the leased property following a default;

(C) Cost incurred in defending a court action or paying a tort judgment arising out of the lessee's operation of the leased property, or any premiums paid on insurance policies covering such court actions or tort judgments;

(D) Cost incurred in disposing of the leased property at expiration or earlier termination of the lease;

(E) Late charges and interest thereon for failing to pay the rentals timely;

(F) Separately stated optional insurance charges, maintenance or warranty contracts;

(G) Personal property taxes assessed against personal property where a bank or financial corporation is the lessor.

(H) "Customer facility fees" collected pursuant to Civil Code section 1936, or any other law whereby a local agency operating an airport requires a rental car company to collect a facility financing fee from its customers.


The link (with the above excerpt about a quarter of the way down):
http://www.boe.ca.gov/lawguides/busines ... 5-all.html

I should say, I'm not a lawyer, just an internet searcher who, like anybody, really does not want to pay tax on fees... :mrgreen:

tigolbruck
Posts: 2
Joined: Tue Mar 14, 2017 12:04 am
Delivery Date: 14 Mar 2017

Re: Lease maturity: Disposition Fee + Sales Tax?

Mon Apr 17, 2017 6:18 pm

So it turns out there ARE taxes on fees... argghh. I sent back my lease disposition fee payment minus the tax and was advised that any FLAT disposition fee is still considered part of a :roll: rental and thus taxable by state of California. Only if they charged individually as direct pass-through costs to the customer for disposing of vehicle would they not be taxable. The nice thing was they waived the balance (my unpaid tax) because it's such a "small" amount. Which makes me wonder why I bothered in the first place but hey it's enough to buy myself and somebody else a nice lunch.. with tax (and maybe even tip).

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