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Is sales tax owed on leased vehicle declared a total loss in Texas?
DTSJR
Sales tax is applied at the point of sale when you make your purchase. They have nothing to do with a loss that occurs at a later time. So if you never paid those sales taxes then you would still owe them.
For example you buy an item and are required to pay the sales tax at the point of sale, Six months later the item is lost or stolen. Your sales tax was already assesed and collected so it has no bearing on your loss nor on your claim and you can not collect the taxes back from your insurer in a claim.
Good try Insur - but the problem is the one asking is - well ignorant and throwing terms around trying to sound not as much so!
Sales Tax is part of the capitialized cost of the item or in some States (and financing options) applied on each payment. In either case it is not "owed", having been paid at purchase by the company one is leasing the item from, or applied to lease payments - which would discontinue at time of loss.
In no case does the any amount owed change or have any influence on the value of what ever it is that is "a loss". The amount lost is the amount of value of the item totaled - whether you paid, what is to be paid makes no difference...just like to the next buyer it would make no difference.
What you owe can make a difference to the amount of equity, gain or loss you end up with. That is the amount of basis you have, or the amount above or below the amount you still owe or paid. So if you owed the tax, like if you owed any amount you borrowed, before the loss, you owe it after...the proceeds of the insurance (or the amount you have to pay off) does not change because you now don't have the item.
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what does tax title and license cost on used car in Texas
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If I live in Kansa but buy a car from a private party in Texas, how is sales tax calculated on the vehicle.
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You had a fatal loss accident and your insurance estimate came out to be significant less than the residue value for your leased vehicle What is your recourse How do you negotiate with my insurance co?
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