Moving states Mid-Year, tax credit advice needed

Hi,

I am moving from Colorado to Texas in Mid-April and I am interesting in leasing or purchasing a Leaf because my commute in Dallas, TX is likely to justify the cost.

The main decision I need to make is... should I buy the car in Colorado or Texas.
Texas has a 2,500 state incentive which is reduced if taking less than a 48 month lease. (~$1850 with a 36 month lease)
Colorado has a $6,000 refundable tax credit which usually pays out around $5k for Purchased Leafs and $1k from leased Leafs.

My main questions are, if I buy in CO and have the car shipped to Texas (Free due to job relocation), will I even need to register the car in CO prior to moving it to Texas? I wouldn't have a NEED to drive it for any amount of time in CO.

Also, if I buy in CO but only file partial year state taxes, how much of the CO refundable tax credit would I get? It's different than the federal credit and regardless of how much you pay in taxes, you get 100% of the credit, but I'm not sure if being only a partial year resident would mean I also only get a partial credit.

It's all very confusing with very little information so I was hoping you knowledgeable folks could help.

I am in a similar situation in that I may be moving to Colorado this year. I have been exploring the idea of buying a new car there instead of paying to move mine from here. Thus I've looked at the CO rebate a little bit.

I don't think I've seen anything about partial year in any of the rebates. However you generally (and I know this to be true in CO) must register the car in the state giving the rebate. Now, I don't know the implications of moving that registration out of state in the same year, but you will almost certainly have to at least initially register it there.

The "safest" approach would likely be to just get it in Texas and file for it there.

So I ended up buying the leaf in Colorado and registering it there, knowing I would be moving to Texas only to re-register it.

The Colorado registration costs of $700 were still significant less than the difference of the tax incentive in Colorado ($5,000) compared to Texas. ($2500)

The timing also worked where I was able to get a pretty good deal in Colorado compared to Texas. I researched and couldn't find anything about partial year residents so I'm hopeful that won't be an issue when filing 2015 CO state taxes.

Also, the lease in Texas wouldn't have been an option since they charge full sales tax when leasing, and that applies even if leasing in CO and then bringing it to Texas. (They would ask for all of the sales tax for the full value of the car up front when registering)

Thanks,
John

Vaggeto said:

So I ended up buying the leaf in Colorado and registering it there, knowing I would be moving to Texas only to re-register it.

The Colorado registration costs of $700 were still significant less than the difference of the tax incentive in Colorado ($5,000) compared to Texas. ($2500)

The timing also worked where I was able to get a pretty good deal in Colorado compared to Texas. I researched and couldn't find anything about partial year residents so I'm hopeful that won't be an issue when filing 2015 CO state taxes.

Also, the lease in Texas wouldn't have been an option since they charge full sales tax when leasing, and that applies even if leasing in CO and then bringing it to Texas. (They would ask for all of the sales tax for the full value of the car up front when registering)

Thanks,
John

Click to expand...

These 'moving' scenarios are all pretty unique; some states (actually most) also have a time frame where you'll need to register the car and get new plates (within first 30 to 60 days after you've moved in state, etc.) and in some cases will 'waive' their own sales tax charge if you can show them what you paid for sales tax in the state you're coming from. Don't know TX law but at the very least you should find out before you need to renew your CO plates. I would definitely get a pro to do your taxes so they can best determine how to file for the rebate, etc. and your partial residence status in both states.

That's a very generous rebate in CO BTW; IL had one up to $4K (10% of MSRP up to $4K) but they decided to cut funding and left a number of people expecting it in the wind (from last year no less!) but I did get one on my '12; of course the car has depreciated like a rock since but it's all still 'on paper' for now as I don't plan to sell/trade it anytime soon --- the only issue would be if it was totaled and then I would see the diminished value with an insurance payout.

Best of luck with your new LEAF !