In Michigan, the taxes and fees associated with leasing a car include the state sales tax, use tax, DMV fees, and dealership fees. Here’s a breakdown of these components:

1. State Sales Tax: The car sales tax in Michigan is 6%, and there are no additional local or county taxes. All tax rates in Michigan are set at 6%.
2. Use Tax on Lease Transactions: For leasing transactions, Michigan has specific guidelines for the application of use tax. Lessees and lessors are liable for use tax on lease transactions. The use tax treatment of tangible personal property acquired for lease or rental is outlined in the Michigan Revenue Administrative Bulletin 2023-13.
3. Leasing Specifics: When leasing a vehicle, lessees in Michigan are only required to pay taxes on their monthly lease payments. The lease agreement might include options to purchase or extend the lease. If a lease buy-out option is exercised, sales tax is due based on 6% of the purchase option price.
4. DMV Fees: Some of the DMV fees associated with the purchase of a vehicle in Michigan include a $15 registration fee, a $15 title fee, and a $10 plate transfer fee.
5. Dealership Fees: Dealerships in Michigan apply extra fees, sometimes referred to as “doc fees,” with the sale of the car. The average fee in Michigan is $165, with a limit of $230 or 5% of the purchase price on how much dealerships can charge.

It’s important to note that these rates and fees can vary, and there might be additional fees depending on the specific dealership or leasing company. When leasing a car, it’s advisable to consult with the dealership or leasing company for a detailed breakdown of all applicable taxes and fees.