Q. If we lease a car in Florida and are charged taxes on a monthly basis, do we have to pay taxes on the car to New Jersey, which is our home state?
A. It’s a good question.
New Jersey assesses a tax when you purchase certain goods or services.
This tax is called the sales tax, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
Forty-four other states also have sales taxes, he said. Only Alaska, Delaware. Montana, New Hampshire and Oregon do not.
New Jersey also has a “use tax,” he said.
This tax is assessed on goods or services obtained out of state that were not subject to any sales tax.
“The use tax applies if you use the goods or services in New Jersey,” Kiely said. “You report and pay New Jersey’s use tax on your NJ-1040 income tax return.
Enter out-of-state purchases on worksheet K: “Use Tax Calculation,” he said.
In your question you state that you are charged Florida taxes on a monthly basis when you make your auto lease payments.
Because you are paying sales tax to Florida, you are not required to pay New Jersey use tax, he said.
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Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com’s weekly e-newsletter.