[Mako]

can't be right, but dealer said they tax MSDs

Dealer held their lease offer and didn't charge me the tax but said they had to pay it (comes out to around $400 extra tax).

I don't see how a state can legally charge tax on something that isn't part of the purchase price. I mean I know my state is messed up, but thats like charging tax on your savings account (wait don't some politicians want to do that )

[arciga18]

Sounds wrong but who knows. Chicago residence ?

[ando]

We get taxed high for about everything here in Chicago.

[Silververtu]

It's a deposit, you will get it back at end of lease. Would you also get the tax back by end of lease?

Sounds like the dealer is trying every way to squeeze profits.

[Mako]

Originally Posted by Silververtu

It's a deposit, you will get it back at end of lease. Would you also get the tax back by end of lease?

Sounds like the dealer is trying every way to squeeze profits.

ha thats exactly what I asked, of course the answer is no.
Dealer ate the difference and gave me the lease quoted but its still not right and I think whoever told them that is wrong (their software wouldn't let them not tax it), I think they need new software (this is their internal software before it goes to BMW).

A lot of dealers don't really deal with MSD as the common car buyer doesn't know they even exist.

[GailFrem]

You mentioned their soft doesn't even allow them not to tax. Maybe the dealer doesn't even know for sure whether the MSDs are taxed in IL? I've heard that MSDs aren't supposed to be taxed in any country. You could ask a financial advisor, or maybe you could check with someone from IRS? And no, I certainly don't think it's a deposit which you will get back. Personally, I'm very aware when it comes to my finances and taxes (as everyone should be, for that matter). I make sure to double-check, triple-check on any transactions, fees, taxes, etc. I even started using a check stub maker to make sure I'm not missing anything. Good luck!