Motor vehicle dealers in the state of New York are responsible for collecting and remitting the tax on a lease that assigned to a third party lessor. Sales tax is due on the lease of a motor vehicle “as of the date of first payment under the lease or the date of registration of the motor vehicle, whichever is earlier.” The state also clarified that when a customer trades in their vehicle for credit against the lease, the credited amount is not subject to tax because the dealer accepts the vehicle with the intent of reselling it. (TSB-A-06(24)S, New York Commissioner of Taxation and Finance, Oct. 19, 2006)