We leased a MachE in late August, and are paying Virginia personal property tax thru the lease payment. Has anyone received, or should I expect, a statement from Ford showing the amount of personal property tax paid for use on my taxes as a deduction?
I have called Ford Finance twice and they don’t seem to understand the question and have given me wildly, obviously inaccurate information and amounts. My monthly invoices do not break out lease and tax amount or I could just calculate it myself.
No advice for you, but I wish they did something like that here in North Carolina. We have to pay our personal property tax on our vehicles here annually in a lump sum, no payments. We have to pay it along with our tag renewal. Plus the “EV fee.” When I renewed my tags back in November it was over $500 for tags+property tax+EV fee.
My little city in Texas does the same thing on leases, if they find out about it. I stressed this point to my dealer several times, they insisted they’ve never heard of it. The one time I’ve seen anything happen we received a notice from the lienholder that a payment was sent on our behalf.
@Zara
I fully expect that the lienholder will pay since they’re collecting it via my monthly payment, and I have confirmed with the county that there is $425 due in a few weeks. And like you, nobody seems to understand how it works.
Your Leon holder gets the bill, they should either adjust your payment if the tax bill changes or send you a bill/refund for the calculated difference. We leased a volt years ago and that’s how GM financial did it. Only downfall to leasing is the personal property exception on the first 20k of assessed value does not work with lease since it’s a corporate owned vehicle, not personal. Ps personal property tax in VA sucks and is a racket. I’m paying more on a 7 year old pickup per year than when I bought it 5 years ago because they say the value has gone up, which it hasn’t. Also curious what they are going to do with my MME since I paid less than what they say the value is, expecting a fight on the MME this year.
New to leasing with Ford so I’m not sure how it works either, but I think they might send you something in the mail at the beginning of the year. I just checked USPS and a letter from Ford Credit will be delivered to me today. They’ve never sent me anything by mail before, so I assumed it was related to my taxes.
I live in Virginia and have the SAME QUESTION! The dealership was adamant about setting the payments up this way. On my offer sheet it shows my base payment plus the additional tax portion each month but after completing the deal I began to question this. How did they determine that tax amount since it is based on the value of the car each year and if the tax is less shouldn’t I be due a refund from Ford for the overpayment? I don’t see getting a refund since it does not show it as a separate part of the payment through Ford. I would also love if someone could explain this better and thanks for asking the question!
@Ocean
I am going to assume that this will get adjusted much like a mortgage escrow account. I probably should call Ford Finance and ask that question, but based on past conversations I’m not sure they would give me an accurate, confident answer.
I also emailed my county tax office and asked them how much the bill for last year would be so that I would have a written document on how much I could write off on my taxes. They were very responsive and helpful, and said that in my case the lien holder should be paying.
@Andy
I guess my only question would be, how does ford know what amount of the payment was to go towards property tax since they don’t show that as a separate portion of the payment? Does that make sense…maybe I’m overthinking it?
@Ocean
I would assume that they have tax tables for making the calculation. I used to have to do manual validation of payroll taxes at a National, State and Locality level so I know it exists. And no, I don’t think you’re overthinking at all. It’s just unfortunate that there is such a lack of information.