Auto Insurance Claims: Applicable Taxes in claim, California taxes

Question
In the case of total loss on a leased vehicle:
What is the amount on which 'applicable taxes' apply? My insurer is stating that these are the tax portion of the payments I have made .. rather than the tax on the agreed cash value with all the adjustments. Calif Ins Code 2695.8b1 uses the term 'applicable' taxes .. and seems to me it would be on the ACV... and that the insurers method is NOT correct.  Thank you

Answer
Tamza,

  The taxes should be calculated based on the cost to purchase a comparable replacement vehicle.  This is very clear in the insurance code of CA that you cited. . . .

  This cash settlement amount shall include all applicable taxes
and one-time fees incident to transfer of evidence of ownership of a
comparable automobile.

  Whatever taxes would be paid if you sold the vehicle outright should be what is paid on the total loss.



JP