Let's take the example described in an article where a former New York resident is moving to Florida. It just so happens that this individual leases his or her motor vehicle.
"Upon initially leasing the vehicle in New York, this individual paid sales tax for the entire lease term. Unlike most states, for long-term motor vehicle leases, New York requires that sales tax be paid upfront based on the total amount of lease payments for the entire lease term. After the lessee moved to Florida the following year, the leasing bank began charging Florida sales tax on the monthly lease payments."
It is interesting to note that had the situation been flipped and the taxpayer was a Florida resident moving to New York, "the lease payments made following the move would have escaped sales tax entirely. In this situation, New York would source these lease payments to Florida, while Florida would source them to New York."
New Jersey is another state that requires taxes to be paid upfront for long-term leases. However, according to the article, "New Jersey allows a refund for a portion of this tax paid upfront if leased property is relocated to another state."
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