# State specific chart for: Is the acquistion fee/doc fee taxed if paid up front?



## schley (May 26, 2005)

Well I started this crusade in response to the never ending ambiguity that comes with trying to figure out which states tax the acquistion fee/ doc fee if you paid them up front and NOT rolled them into the cap cost.

I emailed bmw dealers in all 50 states with this question: "I'm thinking about leasing a vehicle and had 1 question for your finance department. If I do decide to lease and I pay the acquisition fee and doc fee up front at signing will I be taxed on those fees as well? I'm not sure what the state tax law says, and wanted to get an answer before deciding. Thanks for your help."

Now let me preface this by saying that their responses ranged from very confident to shaky at best IMO. This was a question that almost every dealer had to check with their finance manager about as it is pretty much a niche question for the finance department, who interpret the state's tax law. This shouldn't be considered an authoritative resource, but a guide. 

Some states I never, despite repeated efforts, got an answer from that I could use in this survey. If the state says none, it means that there are no bmw dealerships in that state and there were 6 of those. I got responses from 32 states, which leaves 12 states that didn't come across with a usable response. 

Here you go and feel free to make suggestions for corrections as again this is not a definitive source, but I wanted to post for those that are curious. I am surprised with how many do tax it as I originally thought it would be 80% that would say no, but it turned out to be about 60%. I still am not sure about Caliofornia as I have contacted 5 dealerships and 3 said yes and 2 said no. I know I didn't get taxed when I paid it up front over 2 months ago, but some on here have been.

It reads as: acquisition fee / doc fee

n/n	Alabama
/	Alaska
y/n	Arizona
y/n	Arkansas
y/y	California
y/y	Colorado
y/y	Connecticut
n/n	Delaware
/	Florida
n/y	Georgia
/	Hawaii
y/y	Idaho
n/y	Illinois
n/n	Indiana
none	Iowa
none	Kansas
n/n	Kentucky
n/n	Louisiana
/	Maine
n/y	Maryland
y/n	Massachusetts
y/n	Michigan
n/n	Minnesota
n/n	Mississippi
y/y	Missouri
none	Montana
n/n	Nebraska
y/y	Nevada
n/n	New Hampshire
n/n	New Jersey
y/y	New Mexico
y/n	New York
n/n	North Carolina
none	North Dakota
/	Ohio
n/n	Oklahoma
n/n	Oregon
/	Pennsylvania
y/y	Rhode Island
none	South Carolina
n/y	South Dakota
/	Tennessee
n/n	Texas
/	Utah
n/n	Virginia
/	Vermont
y/n	Washington
/	West Virginia
/	Wisconsin
none	Wyoming

Acquisition fee 14 yes/ 19 no
Doc fee 12 yes/ 21 no


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## NASA43 (Jul 19, 2003)

I have paperwork on two vehicles I have leased in Alabama. If you pay the Doc Fee and Lease Acquisition Fee up front, you do not pay any tax on them.


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## kyfdx (Aug 4, 2003)

schley said:


> Well I started this crusade in response to the never ending ambiguity that comes with trying to figure out which states tax the acquistion fee/ doc fee if you paid them up front and NOT rolled them into the cap cost.
> 
> I emailed bmw dealers in all 50 states with this question: "I'm thinking about leasing a vehicle and had 1 question for your finance department. If I do decide to lease and I pay the acquisition fee and doc fee up front at signing will I be taxed on those fees as well? I'm not sure what the state tax law says, and wanted to get an answer before deciding. Thanks for your help."
> 
> ...


I swear... I will never, ever question you again.. I feel really bad that I might have caused you to go to so much effort to find out this answer... LOL..

Really... don't you have a hobby?

Interesting, though... Thanks!

kyfdx


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## donkeyjote (Nov 6, 2006)

Bimmerfest is a hobby! Right? Thanks for the info, Schley. Knowledge is power.


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## AgentBif (Oct 21, 2006)

I have found Schley to be enormously helpful on these forums. So I for one appreciate his attention to detail. He really helps make this a quality hangout for people trying to work out deals on these fine rides.


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## schley (May 26, 2005)

Thanks men. Now I just have to find a way for each dealership to quit following up my email inquiry with repeated requests asking if I'm still interested.) Can't fault their aggressiveness and professionalism.

I agree when I'm spending time gathering this type of information I'm thinking, isn't there about 1million more things more interesting than that. :dunno:


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