Excise Tax (Texas) on 2022 Lucid Air Grand Touring Lease

[saabfan]

Hi-

I have a 2022 Grand Touring on which I have been making regular lease payments in Texas since I acquired the vehicle in December of 2022. I was surprised to see an additional fee of approximately $2500 show up on my most recent statement (February 2024). I called in and was told this is for excise tax. I don't recall seeing this last year. Is this a legitimate charge?

Thanks in advance for your thoughts.

 

[BobFM]

Likely depends on the language in the actual lease. Would look to that first. FYI, here's some info on the TX Comptroller website...

Motor Vehicle Tax Guide

A publication to assist county Tax Assessor-Collectors with collection, remittance and regulations for Texas Motor Vehicle Sales and Use Tax.

comptroller.texas.gov

 

[saabfan]

In the lease is a section labeled “estimated official fees and taxes you must pay during the lease.”

The amount listed, save for approximately $170, was due and paid at time of lease signing.

 

[BobFM]

So they added an additional amount on top of that now? If you've already paid the tax at lease signing, I'm not sure why there would be an additional amount, unless the initial amount was incorrect...

 

[saabfan]

Yes. Randomly with my most recent monthly statement there was an additional $2500 listed as a “fee”. I had to call to get an explanation and was told it was an “excise tax”.

 

[BobFM]

So, the question is, did they understate the correct tax initially. Believe it should have been 6.25% of gross price.

 

[saabfan]

The adjusted capitalized cost of my vehicle was approximately $134,500. Making the tax approximately $8409. Due at time of signing was $8322.

(Thank you for your help - I am very appreciative.)

 

[saabfan]

I’ve spent about thirty minutes on the phone with LFS. Still no firm resolution but they admit it’s an error. They don’t have my notarized affidavit from this year which was sent in about two months ago. First a rep told me she couldn’t access that info at all. Then later she said she could and was able to confirm the affidavit from 2023 but not from 2024. The affidavit affirms I use the vehicle for personal reasons and therefore not subject to additional property taxes.

When I attempted to get auto draft set up they entered my bank account number incorrectly (and I provided a voided check so it was not a transcription error on my part). It created many issues including a late payment.

I find LFS to be terrible at record keeping. Never experienced such difficulties with any other lease.

 

[hydbob]

I’ve spent about thirty minutes on the phone with LFS. Still no firm resolution but they admit it’s an error. They don’t have my notarized affidavit from this year which was sent in about two months ago. First a rep told me she couldn’t access that info at all. Then later she said she could and was able to confirm the affidavit from 2023 but not from 2024. The affidavit affirms I use the vehicle for personal reasons and therefore not subject to additional property taxes.

When I attempted to get auto draft set up they entered my bank account number incorrectly (and I provided a voided check so it was not a transcription error on my part). It created many issues including a late payment.

I find LFS to be terrible at record keeping. Never experienced such difficulties with any other lease.

Pretty part for the course with BofA. Sorry you have to go through this and hope it gets resolved soon

 

[BobFM]

I'll second @hydbob. Hope it gets resolved soon!

 

[saabfan]

Over a week later and LFS still hasn’t gotten me a new affidavit. I asked for it to be emailed and the rep said “if we can do that, it should arrive within 3 days, if not, we’ll mail it.”

They are rather clueless, unfortunately. Definitely makes leasing with Lucid a frustrating experience. It may be all on BoA, but Lucid chose to partner with them for leasing.

As an aside, with each call, I ask for a reference number so that I have some sort of paper trail that proves I’ve actually being doing my part to remedy their error. They tell me they cannot give me any reference or case number, but rest assured, all calls are recorded.

 

[saabfan]

The saga continues. The Dallas County Appraisal District confirms that a leased vehicle used for personal reasons is not subject to property tax. They suggested I speak to the Tax Department at LFS. Multiple calls to LFS requesting their records of when they submitted my affidavit (form 50-285) have gone unanswered. They promise to call back with the information but never return my call. Today I spoke to Ty, a supervisor at LFS, with whom I have spoken before. Even though I was told several weeks ago that they have received my 50-285 for this year (trying to avoid the same issue from 2023), they have yet to upload it to their system. The mismanagement and incompetence is legion. I have emailed Peter Rawlinson and Lucid Customer service. They have not helped at all. A friend told me to send messages to all the higher ups at Lucid via LinkedIn.

Ty has promised for help from her manager and the tax department tomorrow. I am not holding my breath.

 

[saabfan]

Lucid Financial Services finally reversed the tax. They didn’t admit an error despite telling me repeatedly that the tax was correct and owed. They have yet to confirm my affidavit for 2024 is properly uploaded. More time to waste on the phone but at least 2023 is taken care of.

 

[BobFM]

Glad to hear it got resolved!