Consumer complaint received 2020-06-08
Product: Vehicle loan or lease — Lease
Issue: Managing the loan or lease — Billing problem
Company: ALLY FINANCIAL INC. (DC)

To whom it may concern, The DC Code clearly exempts from tax both car sales and leases that occurred by nonresidents prior to establishing residency in the district, most likely in an attempt to avoid double taxation ( as we already paid tax in full elsewhere. ) Thus far you have only referenced the codes below, but clearly have not actually read the text of the code. See below : 1. Regarding the excise tax : My vehicle is currently registered in DC and the MVA did not charge any excise tax upon registration and none was due per their website : " Excise tax ( if there is no change in vehicle ownership ( i.e., you are transferring a vehicle into DC from another jurisdiction ), then no excise tax is due ) '' Link : https : //dmv.dc.gov/page/vehicle-registration-and-title-fee-estimator 2. The two use taxes Ally has wrongly applied are : 472202. Imposition of tax. 
o There is hereby imposed and there shall be paid by every vendor engaging in business in the District and by every purchaser a tax on the use, storage, or consumption of any tangible personal property and service sold or purchased at retail sale. The rate of tax imposed by this section shall be 6.00 % of the sales price of such tangible personal property and services, except that : ( 3B ) The rate of tax shall be 9.25 % of the gross receipts from the sale of or charges for rental or leasing of rental vehicles and utility trailers as defined in 50-1505.01 472202.01. Tax on gross receipts for transient lodgings or accommodations ; food or drink for immediate consumption ; spirits sold for consumption on premises ; rental vehicles. 
o A tax, separate from, and in addition to, the taxes imposed pursuant to 47-2202 is imposed on the use, storage, or consumption of certain tangible personal property and services sold or purchased at retail sale in the District. Vendors engaging in the business activities listed in paragraphs ( 1 ) and ( 2 ) of this section and purchasers of the vendors tangible personal property and services shall pay the tax at the following rate : ( 2 ) 1 % of the gross receipts from the sale or charges made for : ( C ) Rental or leasing of rental vehicles and utility trailers as defined in 50-1505.01 ( 8 ) and ( 9 ). 

3. A car lease and all subsequent payments is defined as the sale by the DC Code : 472001. ( q ) Sale and selling mean any transaction whereby title or possession, or both, of tangible personal property is or is to be transferred by any means whatsoever, including rental, lease, license, or right to reproduce or use, for a consideration, by a vendor to a purchaser, or any transaction whereby services subject to tax under this chapter are rendered for consideration or are sold to any purchaser by any vendor, and shall include, but not be limited to, any sale at retail as defined in this chapter. Such consideration may be either in the form of a price in money, rights, or property, or by exchange or barter, and may be payable immediately, in the future, or by installments. 
o Definition in 472001. applies per 472201. ( j ) 4. DC Code clearly exempts retail sales where the property was acquired by a nonresident prior to establishing residency in the district : 472201. ( a ) ( 2 ) The terms retail sale, sale at retail, and sold at retail shall not include the following : o ( C ) Sales of tangible personal property which property was purchased or acquired by a nonresident prior to coming into the District and establishing or maintaining a temporary or permanent residence in the District. As used in this subsection, the word residence means a place in which to reside and does not mean domicile ; My lease was initiated and acquisition occurred prior to moving to and establishing residency in the District of Columbia, therefore, I am not subject to these two taxes. This makes sense as if I had purchased the vehicle instead of leasing we would not owe any excise tax as well. 
Please PROPERLY REVIEW AND REMOVE the fraudulently applied taxes immediately. 
Thank you for your prompt assistance in this matter.