Any new info about the California Sales Tax?

[Big-T]

Yeah it would be nice to see an updated PDF, based on the fact they're supposed to release it every 6 months, should be any day now (Sept 15th + 6 months = March 15th). Not sure what we can do but cross our fingers. Rumor has it that a lot of folks are holding of getting new EV's for the model 3, maybe the registration numbers will go down a little.....Or we can talk to someone in Olympia about extending the credit?!?

 

[iwannam3]

Exact same here... Although I'm considering taking delivery in OR (no sales tax) and driving home.

Fill your car with tax free stuff in Oregon, HD TVs, riding lawn mowers, tools, jewels, etc. A friend visited me in Oregon and literally filled his pickup with tax free booty. You can't pump your own gas, but you can charge your car without an attendant.

 

[tga]

Fill your car with tax free stuff in Oregon, HD TVs, riding lawn mowers, tools, jewels, etc. A friend visited me in Oregon and literally filled his pickup with tax free booty. You can't pump your own gas, but you can charge your car without an attendant.

I live in NH. I can get all that tax free booty within 5 miles (much of it while supercharging, too!)

 

[cpa]

Fill your car with tax free stuff in Oregon, HD TVs, riding lawn mowers, tools, jewels, etc. A friend visited me in Oregon and literally filled his pickup with tax free booty. You can't pump your own gas, but you can charge your car without an attendant.

But then there is the dread use tax.

Use tax

So, really, one should not be skating on paying their proper amount of sales or use taxes. And as loyal, upstanding and forthright citizens we Tesla owners are proud to uphold our obligations, right? Right? Anyone out there?

 

[Trips]

Has there been any update on this? I am sure that Tesla has some great lawyers but why are they not exempt through a "dealer" loophole? Here is what I found from a 2015 article that only mentions dealers and not manufacturers.

"The California State Board of Equalization ("Board") released guidance on vehicle and vessel transfers that are not subject to California use tax.

California taxes sales of vehicles and vessels ("vehicles") unless an exemption applies. When a vehicle is purchased from a dealer in California, the dealer is responsible for reporting and paying sales tax. When a vehicle is purchased from someone other than a dealer, the purchaser must pay use tax. The use tax rate is generally the rate that applies where the vehicle is registered or moored. The sales tax rate is generally the rate that applies where the vehicle is sold. Purchasers can pay use tax either to the Department of Motor Vehicles ("DMV") when they register the vehicle or directly to the Board.

California exempts some vehicle sales to individuals by non-dealers. A vehicle is exempt from use tax when it is (1) received as a gift, (2) purchased from a family member, (3) involuntarily obtained through inheritance or court order, (4) received in the dissolution of a company, (5) purchased and delivered out of state without being used, (6) purchased and delivered out of state by active duty military personnel who then transfer to California and bring the vehicle with them, (7) purchased by the U.S. government, (8) purchased for out-of-state use and only used in California while being removed from the state, or (9) purchased by an American Indian for use on a reservation.

If a purchaser qualifies for a use tax exemption, the purchaser may get a Use Tax Clearance certificate from the Board. This certificate allows the purchaser to register the vehicle in California without paying use tax. The DMV can process vehicle registrations without this certificate but is not required to do so."

http://www.boe.ca.gov/pdf/pub52.pdf

California Publishes Guidance for Vehicle Use Tax Exemptions

From Tesla.com Q&A
"I don’t live in California; do I still have to pay California sales tax?
If you live in a state where Tesla has a sales license, the final amount due will include sales tax specific to your state of registration. If you live in a state where we do not have a sales license, you will pay applicable sales tax to your state when you register your car. Please note that if you take delivery of your vehicle in California, we are required to collect California sales tax even if the vehicle will be registered in another state. We recommend discussing all tax concerns with your tax professional."

 

[cpa]

Has there been any update on this? I am sure that Tesla has some great lawyers but why are they not exempt through a "dealer" loophole? Here is what I found from a 2015 article that only mentions dealers and not manufacturers.

"The California State Board of Equalization ("Board") released guidance on vehicle and vessel transfers that are not subject to California use tax.

California taxes sales of vehicles and vessels ("vehicles") unless an exemption applies. When a vehicle is purchased from a dealer in California, the dealer is responsible for reporting and paying sales tax. When a vehicle is purchased from someone other than a dealer, the purchaser must pay use tax. The use tax rate is generally the rate that applies where the vehicle is registered or moored. The sales tax rate is generally the rate that applies where the vehicle is sold. Purchasers can pay use tax either to the Department of Motor Vehicles ("DMV") when they register the vehicle or directly to the Board.

California exempts some vehicle sales to individuals by non-dealers. A vehicle is exempt from use tax when it is (1) received as a gift, (2) purchased from a family member, (3) involuntarily obtained through inheritance or court order, (4) received in the dissolution of a company, (5) purchased and delivered out of state without being used, (6) purchased and delivered out of state by active duty military personnel who then transfer to California and bring the vehicle with them, (7) purchased by the U.S. government, (8) purchased for out-of-state use and only used in California while being removed from the state, or (9) purchased by an American Indian for use on a reservation.

If a purchaser qualifies for a use tax exemption, the purchaser may get a Use Tax Clearance certificate from the Board. This certificate allows the purchaser to register the vehicle in California without paying use tax. The DMV can process vehicle registrations without this certificate but is not required to do so."

http://www.boe.ca.gov/pdf/pub52.pdf

California Publishes Guidance for Vehicle Use Tax Exemptions

From Tesla.com Q&A
"I don’t live in California; do I still have to pay California sales tax?
If you live in a state where Tesla has a sales license, the final amount due will include sales tax specific to your state of registration. If you live in a state where we do not have a sales license, you will pay applicable sales tax to your state when you register your car. Please note that if you take delivery of your vehicle in California, we are required to collect California sales tax even if the vehicle will be registered in another state. We recommend discussing all tax concerns with your tax professional."

Not sure what your question is. What do you mean by dealer loophole? In California, Tesla is licensed as a dealer as well as a manufacturer.

How can Tesla's lawyers change the statutes?

 

[mrongey]

This article has re-piqued my interest in picking up my car in CA. California proposes new $3 billion in incentives to support electric vehicle adoption Especially since now they may "offer the incentive directly at the purchase of the vehicle" and the state incentive in Utah expired this year.

 

[tpatana]

We were going to take the "scenic" route back to Washington as well (Highway 101). Probably spending a couple nights in CA hotels...CA restaurants for food...etc etc....I had it all planned out last year. Too bad.

Was planning exactly same. Not anymore. Also Lynnwood resident

Some 14 years ago I bought a car in Germany (while living in Europe), and got the transfer plates to drive it home. No need to pay taxes until home. They should have similar here.

 

[dsvick]

This article has re-piqued my interest in picking up my car in CA. California proposes new $3 billion in incentives to support electric vehicle adoption Especially since now they may "offer the incentive directly at the purchase of the vehicle" and the state incentive in Utah expired this year.

You would probably only qualify for the incentive if you were a resident of CA.

 

[Trips]

Not sure what your question is. What do you mean by dealer loophole? In California, Tesla is licensed as a dealer as well as a manufacturer.

How can Tesla's lawyers change the statutes?

I did not see them listed as a dealer in California but the list could have been really old. If they did not have a license I was thinking that could be a way around it.

 

[mrongey]

You would probably only qualify for the incentive if you were a resident of CA.

True. My family lives there though. I might be willing to jump through a few hoops to save a couple grand, especially if I also get my car sooner. Depends on how big the hoops are though.

 

[ummgood]

What about picking up the car at the gigafactory?

 

[cpa]

I did not see them listed as a dealer in California but the list could have been really old. If they did not have a license I was thinking that could be a way around it.

The Department of Motor Vehicles in California licenses all automobile dealers, whether retail or wholesale. Tesla has to have a license (or multiple ones) to sell their cars instate.

 

[oktane]

It is no secret that California loves tax revenue. It levies almost 15% income tax, which is just about the highest in the nation. So called sunshine tax.

It is no wonder that folks are leaving in droves.

Not to mention wasting tax dollars, shitty roads, gun control (because criminals are worried about breaking the law), socialist policies. I hate how CA gets their grip on everything you earn.

 

[tpatana]

What about picking up the car at the gigafactory?

I guess they could hand you the batteries. The car will be in Fremont though.

 

[jonnyg]

I guess they could hand you the batteries. The car will be in Fremont though.

They talked at one point about doing more than just the batteries at the GF for the model 3. Like the whole drivetrain or something, maybe? Could be for further down the road though.

 

[Darryl]

SB 680 the bill to exempt out of state residence from CA state sales tax died during 2016. There are no plans to reintroduce the bill.

 

[RubberToe]

It is no secret that California loves tax revenue. It levies almost 15% income tax, which is just about the highest in the nation. So called sunshine tax.

It is no wonder that folks are leaving in droves.

Yeah I know what you're talking about! The below chart illustrates this pretty well. There is no way to describe this other than a mass exodus of people leaving the State of California...

I guess that ever since Google, Facebook, Amazon and Netflix all decided to relocate to Alabama, this mass exodus from California should pick up some more speed. Good thing too, since I'm not sure given the exodus whats up with all the cars on the freeway. Come to think of it, most of them are hauling trailers, so they must be heading off to those high paying jobs in the more developed areas of the country.

RT

P.S. Google is your friend, and it even works in the Mountain West from what I hear. Do yourself a favor and change the channel from Faux News.

 

[cpa]

RubberToe,

I am not sure that demographic information correlates directly to income taxes collected. Yes, our population has skyrocketed the past 50+ years. I know from my own practice that many higher-earning taxpayers and retirees on fixed incomes flee the state when the getting is right for them. Immigration (both the legal and not-so-legal kinds) has exploded too. Most of these folks are either off the radar or they are beneath the filing threshold for their filing status.

We have a mushrooming underground economy in ag, construction, and other industries that leave billions of federal tax dollars and tens of millions or more of California tax dollars unreported and uncollected. Moreover, unreported "wages" escape the various mandatory withholdings and unemployment insurance contributions by employers.

Lastly, we baby boomers are retiring. I have a number of clients who have already retired or who will be retiring by 2019. Their hefty six-figure incomes will plummet by 2/3 (still a comfortable living.) Their replacements in the work force will be earning roughly half of my clients' current salaries (according to them, anyway.) Also, California residents >65 receive an additional exemption credit of $111 each for 2016. We have an aging population who lives longer. That $111 a pop can add up when so many of us are 65 or older.

I do not know how to Google, so apologies in advance. I try; I fail. But there has to be some data floating around out there that are provided by the FTB that essentially summarizes income taxes reported and returns filed by calendar year. In my opinion, that information would be more compelling that raw census data.

Cheers!

 

[Reeler]

I am not going to get in a war of words, but it seems short sighted that CA would not do what other car producing jurisdictions do and allow factory delivery without paying higher-than-most sales taxes. The German automakers and domestic automakers have this, but Tesla and CA does not. I bet there are tens of thousands of tourists drawn into these programs that build a vacation around the visit. CA could have that too, but . . .

CA can enjoy their highest income tax and near highest sales tax while I enjoy about 4% on each in Colorado. BTW: CO is 4th in population growth between the last two census, but CA is 17th. In fact, CA just barely beat the typical population growth of the nation. List of U.S. states by population growth rate - Wikipedia I moved 20 years ago and will not be back except for short visits for vacation or business.

My suggestion to Tesla is to allow delivery in Sparks, NV at the Gigafactory as Nevada has no sales tax. Those train cars or hyperloop tunnels delivering batteries are awfully empty on the return trip.