re: sales tax on a leased car

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You're attempting to trade in a leased car?

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I've done that several times with my leased vehicles that were worth substantially more than the end-of-lease purchase price. The dealer purchased it outright and I applied the cash out to the capitalized cost reduction on the next lease. I've also sold two of my leased vehicles to friends at the end of the lease with them paying the difference between the EOL purchase price and book trade-in value.

When you turn in a leased car to a dealership they have no claim on the vehicle. It just sits on their lot until the leasing company picks it up and takes it to auction unless you exercise the EOL purchase option and sell it to the dealer.

Sales tax is due on the final EOL purchase price if you sell to an individual.