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West Loop Law: Texas drivers hit with double taxation on lease buyouts--banks and dealers under fire

On May 23, 2025, West Loop Law, a consumer advocacy firm based in Houston, announced an investigation into Texas drivers who may have paid excess sales tax when purchasing leased vehicles.
A rarely known Texas tax law allows lease-to-own customers to receive a credit for sales tax paid during the lease period, but recent reports reveal that banks and car dealers are wrongly taking advantage of these credits.
Some dealerships encourage completing lease buyouts through them instead of banks, which voids credits; false trade-ins appear on paperwork to manipulate tax liability, causing drivers to pay twice.
Attorney Nhan Nguyen highlighted that Texas drivers are unfairly charged twice in taxes, while financial institutions and car dealers benefit from the credits, describing the situation as a serious breach of consumer protections that may cost each motorist several thousand dollars.
West Loop Law actively seeks to address deceptive practices by banks and dealerships and is prepared to initiate individual lawsuits or class-action suits for Texas motorists impacted by such conduct.

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Denton Record-Chronicle

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West Loop Law: Texas drivers hit with double taxation on lease buyouts--banks and dealers under fire

HOUSTON, May 23, 2025 /PRNewswire/ -- Tens of thousands of Texas drivers may be eligible for significant tax refunds after unknowingly overpaying sales tax on leased vehicles they chose to purchase. A growing legal investigation led by West Loop Law,…

2 days ago·Denton, United States

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