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City of Frisco Question and Answer Board » Frisco Q & A » HELP NEEDED. How to STOP PERSONAL PROPERTY Taxes on LEASED Vehicles in FRISCO City « Previous Next »

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Steve Johnson
New member
Username: Stjohnson

Post Number: 1
Registered: 03-2009
Posted on Friday, March 20, 2009 - 11:46 am:   

Hi, It has come to my attention that the State of Texas has legislated that the cities can choose to assess personal property taxes on leased vehicles. Frisco chooses to tax it's citizens on personal use Lease vehicles.

I want this to unequivocally STOP.

Not only does Texas require you to pay taxes on the full purchase price of the car when leased (Strike 1) but they also allow the City to tax you via propery tax for your leased vehicle. This is UNFAIR and we need to speak out about it.

This is a bad economy, and some of us lease to keep payments low and are having a hard enough time staying out of forclosure, let alone paying another tax.

How can a citizen, or group of citizens, get a vote in to the city to say stop taxing on personal use leased vehicles? If the state legislature voted to leave this to the cities to assess, there has to be some way for us citizens to vote to stop it. Can anyone help with insight?

Curt Balogh, Spec. Asst. to the City Mgr
Board Administrator
Username: Admin

Post Number: 557
Registered: 02-2003
Posted on Monday, March 23, 2009 - 03:03 pm:   

Per Nell Lange, Assistant City Manager:

The state did pass a tax law change that allowed local taxing jurisdictions the option of exempting leased vehicles if the person filed an affidavit stating the vehicle was for personal use. The City's tax is on the leasing companiesí business personal property. The analogy given by some of our council members was similar to Macy's inventory or the machinery and tools of a rental business. These businesses have to pay business personal property taxes on their inventory. Their taxes are recovered in the cost to rent the equipment or passed on in the cost of the merchandise being sold. The leasing company is not much different. The leased vehicles are their business personal property. Not all leasing companies pass on the tax, it depends on the contract the person has signed. I hope this answers your question. If you would like to have the council review this issue, you may send an e-mail to the Mayor and request to have it brought back before the council for review. Please feel free to give me a call at 972-292-5110 if you have additional questions, or e-mail at

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