Hi.

I'm looking to lease a BMW 135i.

I'm waiting to see if you guys post new May rates.

My question: I was told by my local Indiana dealer that now Indiana collects tax on acquisition fee, security deposit, and any money given towards the lease regardless if it's cap cost reduction or not.

Also, he said that if I do the BMW multiple deposits, I would be taxed 7% state tax on that money, even though it's SECURITY deposit money. That completely negates any advantage to giving multiple deposits to lower the MF. This makes no sense to me.
A security deposit buys nothing. You're not even purchasing anything. It's money that will be returned to you.

Can you shed some light on this?

Thanks.

BMW May programs are posted.

As for the new tax, I am not aware of that although right now it seems like all Government bodies are taxing everything they can think of.

I would call the IN DMV to confirm.