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Leasing M3 RWD not understanding the Tax upfront

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I am looking at a M3 RWD lease 36/10 Blue or Stealth. Stealth is $299 and Blue is $314 per month with $2999 down.
I live in a state with 7% tax rate on leases. What tesla quote me for tax seems to be quiet high approx $1862.
I was also told that they do not tax the 7500 credit given by Tesla for M3 lease.

So anyone know how Tesla calculate the upfront Tax ?

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