Form 78-499 - Motor Vehicle Lease Tax Form - State Of Iowa

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Iowa Motor Vehicle Lease Tax
Tax Basics
To be subject to the tax the following conditions must be present:
Computation of the Tax
The following is an example of how the lease price and tax may be computed:
Sample Formula (for leases entered into on or after July 1, 1997)
1. Enter the monthly lease payment to be paid by the lessee. ....................................................... 1. _____________
2. Enter the number of lease payments for the term of the lease.
For move-ins: Calculate the remaining lease periods. ............................................................ X 2. _____________
3. Multiply line 1 by line 2 to determine the total base lease payments. ..................................... = 3. _____________
4. Enter total up-front fees (not capitalized) that are paid by the lessee. ........................................ 4. _____________
5. Enter the amount of any capitalized cost reduction (cash or net trade).. .................................... 5. _____________
6. Add lines 3, 4 and 5 and enter total here. ..................................................................................... 6. _____________
7. List the cost of each of the following items if paid by the lessee as
part of the monthly payment or paid up-front and enter the total of all costs:
a. Title fees ............................................................................................... a. _____________
b. Registration fees ................................................................................... b. _____________
c. Vehicle lease tax
1. Multiply line 6 by .05
2. Divide the amount by 1.05 ............................................................. c. _____________
d. Federal excise tax ................................................................................ d. _____________
e. Optional service or warranty contract .................................................. e. _____________
f. Insurance ............................................................................................... f. _____________
g. Manufacturer’s rebate ........................................................................... g. _____________
Iowa department of Revenue and Finance
78-499 (03/01)

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