We leased a vehicle in Wheat Ridge Colorado, then we moved to Minnesota why do we have to pay sales tax in MN?

Question

If Colorado adds the tax to each payment and we no longer live in colorado will the colorado tax be subtracted from our payment? why do we have to pay the sales tax for both states if it wasn't bought in MN?

Answer 1

On a lease, each month is a new transaction for tax purposes.  The treatment of sales taxes on cars varies from state to state.  

Colorado adds sales tax to each payment.

Minnesota taxes the entire sum of the payments of the lease upfront.

Edit-  Did you inform the leasing company that the car is now in Minnesota?  If so, the CO Sales Tax should be removed from the payment.

Answer 2

Technically it is a usage tax that is equal to the sales tax. Some states give credit for taxes paid in another state but not all. Not sure about CO/MN