Any new info about the California Sales Tax?

[Big Dog]

Most states do not charge sales tax just for taking delivery in their state, but only if you are registering the car in their state.

That may be the case, but then Calif law is different. And that is probably due to the fact that it would be rare for neighboring state residents to drive across the border and purchase from a California dealer.

If an AZ resident buys a car in CA, they always pay CA tax. Upon registration in AZ, they should get a credit for the tax already paid to CA, but the buyer still winds up paying more tax overall due to CA's higher tax rate.

Why should California care what Arizona does wrt to a tax credit/offset? Moreover, given California's higher tax rate, I would bet big cyber dollars that it is extremely rare for an Arizonan to purchase a car in California. Ditto Oregonians (which have no sales tax). So, historically, this has been a non-issue. (Back in the dark ages, California cars had extra smog controls on them, which no one else wanted.)

 

[tga]

Uhhh, we are talking about California here, not Massachusetts, not New Mexico. In California, it is no different for cars. If you buy anything online from a vendor in California and pick it up in California you will pay California Use Tax regardless what the product is. I am okay with that and I can defend that.

Uhhh, did you actually read the thread before posting? It's about last year's Senate Bill 680, which was trying to promote "industrial tourism" by allowing non-residents to pick up cars without paying CA sales tax by bringing CA sales tax policy in parity with (almost all of) the rest of the country.

If you pick a car up in California and drive it in California, it must be registered in California from minute one.

Only if you are a CA resident. A non-resident can't register it in CA at pickup. And why would I? I can fly in with a paper 20 day transit plate from NH and legally drive home with that. Except that I won't, because it'll add 7.5% to the price of the car.

That seems like a perfectly reasonable and logical expectation. I am okay with that and I can defend that.

"Reasonable" if you define what as many as 48 other states do as "unreasonable"...

Again, if you don't want to pay California Use Tax, simply take delivery in your home State.

I will, you can bet. You know who looses out? The California hotels, restaurants, and other businesses I would have patronized on my way home. CA isn't getting sales tax money from me either way. If I want to drive my Model 3 home from the west coast, I'll pick it up in OR instead, and spend my tourism dollars there instead.

That may be the case, but then Calif law is different. And that is probably due to the fact that it would be rare for neighboring state residents to drive across the border and purchase from a California dealer.

Chicken and egg. No one is going to drive to CA to buy a car if there's a 7.5% penalty. Change the law, and border dealers may get more business. Either way, it doesn't cost the state anything - not collecting tax on an in-state car sale vs the sale happening out of state - both are revenue neutral. In the northeast, people cross-border car shop all the time (granted, out states are smaller). It's easy, except for the MA dealers who have to jump through hoops to deliver cars to out-of-state buyers, so the buyers won't waste money on the sales tax (the MA dealers have to, to compete with non-MA dealers for non-MA buyers). That's why Tesla delivers S and X's to northern NE buyers, vs asking us to come to MA to pick up and pay MA tax.

 

[T34ME]

It's about last year's Senate Bill 680, which was trying to promote "industrial tourism" by allowing non-residents to pick up cars without paying CA sales tax by bringing CA sales tax policy in parity with (almost all of) the rest of the country.

SB680 died, no amount of litigation on this forum is going to bring it back to life. California is the 5th or 6th largest economy in the world (depending on how you figure it) and we did it by not being in parity with the rest of the country.

I can fly in with a paper 20 day transit plate from NH and legally drive home with that. Except that I won't, because it'll add 7.5% to the price of th car.

California does not recognize NH 20 day transit plate.

You know who looses out? The California hotels, restaurants, and other businesses I would have patronized on my way home. CA isn't getting sales tax money from me either way. If I want to drive my Model 3 home from the west coast, I'll pick it up in OR instead, and spend my tourism dollars there instead.

I am confident that California will not go bankrupt because you and a handful of other people take delivery in Oregon. It is a beautiful State and well worth a visit. But we all know why you want to take delivery in California, so you can see your model 3 at the factory, take delivery under the lights, and get that factory tour. You will be coming to California either way and spending your tourism dollars here - Silicon Valley, San Francisco, Golden Gate bridge, Napa Valley, and TESLA factory - and truly worth the 7.25%

 

[adhoc]

California does not recognize NH 20 day transit plate.

I bought a car in MT, and CA did recognize the MT 30 day paper transit plate?

But we all know why you want to take delivery in California, so you can see your model 3 at the factory, take delivery under the lights, and get that factory tour. You will be coming to California either way and spending your tourism dollars here - Silicon Valley, San Francisco, Golden Gate bridge, Napa Valley, and TESLA factory - and truly worth the 7.25%

don't forget CA legalized recreational MJ,
seems you threw everything else in an attempt to justify CA RAPING out of state car buyers!

could this have been the reason the giga factory went out of state?

jerry brown = brilliant! NOT!

 

[K-MTG]

But now isn't there a $300k limit on the state TAX...they kicked out a decent chunk of Tesla drivers.

 

[Big Dog]

Change the law, and border dealers may get more business.

The operative word is "may."

I have no doubt if the automotive dealers believed that they would get additional business to offset the additional paperwork costs of reporting to different state registrars, then they would petition the state Legislature to change the law. But the fact is that the border towns with Nevada and Arizona are tiny, unlike the East Coast where some population centers straddle state lines. (Oregon already has a zero sales tax so they'd be wasting their time to drive to say, Sacramento.)

Folks aren't just gonna drive from Phoenix to LA or Inland Empire to purchase a new car. Thus, the current automotive cabal will oppose anything that helps Tesla.

 

[T34ME]

could this have been the reason the giga factory went out of state?

Nevada gave TESLA tax incentives, speedy ramp-up, rail access, and low humidity.

I must not be brilliant either because I support Jerry Brown and how he brought California from the brink of bankruptcy under the FUDinator to prosperity and a world economic power. Don't like California? You can always move to Montana with 0% sales tax and balmy winters. Many TESLA purchasers will come to California for one reason or another eventually despite the 7.25% tax. Who wouldn't want to see the birthplace of their world changing car at ground zero?

 

[iwannam3]

I'd be happy to pick up my 3 in Nevada and get a giga-factory tour and then head over to California for the factory tour. Two birds, one road trip.

 

[mediamogul]

I was at the state meeting when this was discussed and they used Tesla as the example of why the tax break should be allowed. Seems short-sighted to me for them not to allow this.

 

[T34ME]

I'd be happy to pick up my 3 in Nevada and get a giga-factory tour and then head over to California for the factory tour. Two birds, one road trip.

You illustrate my point exactly! The combined State and local tax rate in your home State of Washington is 8.92% average. Picking your car up in Nevada saves you nothing because you will still pay 8.92% in Washington. If you pick your car up in Fremont, you will pay the California State rate of 7.25%. Upon return to Washington, you will then pay the difference of around 1.65% to Washington State. It will cost you nothing extra to pick your car up in Fremont, take possession under the lights and tour the factory. You say you are going to California anyway, so you will be spending money on accommodations, food, and leisure either way.

There are only 5 States that have no State sales tax. The reservationists in those States can simply take possession in their home State if they wish to avoid paying sales taxes. The whole sales tax argument is a strawman debate for the most part.

 

[iwannam3]

You illustrate my point exactly! The combined State and local tax rate in your home State of Washington is 8.92% average. Picking your car up in Nevada saves you nothing because you will still pay 8.92% in Washington. If you pick your car up in Fremont, you will pay the California State rate of 7.25%. Upon return to Washington, you will then pay the difference of around 1.65% to Washington State. It will cost you nothing extra to pick your car up in Fremont, take possession under the lights and tour the factory. You say you are going to California anyway, so you will be spending money on accommodations, food, and leisure either way.

There are only 5 States that have no State sales tax. The reservationists in those States can simply take possession in their home State if they wish to avoid paying sales taxes. The whole sales tax argument is a strawman debate for the most part.

Washington is exempting sales tax on the first $32,000 of the price of an alternative fuel vehicle with an MSRP below $42,000 ( to keep S and X out). It expires after 7,500 vehicles, his at 5,000+ right now, I will have to pay sales tax on the difference between the sales tax and $32,000.

 

[Big Dog]

The whole sales tax argument is a strawman debate for the most part.

Au contraire. It is the California sales tax that OOS'ers are objecting to. But note, California does allow a credit (against its Use Tax) for sales tax paid on auto purchases made in another state.

 

[tga]

You illustrate my point exactly! The combined State and local tax rate in your home State of Washington is 8.92% average. Picking your car up in Nevada saves you nothing because you will still pay 8.92% in Washington. If you pick your car up in Fremont, you will pay the California State rate of 7.25%. Upon return to Washington, you will then pay the difference of around 1.65% to Washington State. It will cost you nothing extra to pick your car up in Fremont, take possession under the lights and tour the factory. You say you are going to California anyway, so you will be spending money on accommodations, food, and leisure either way.

There are only 5 States that have no State sales tax. The reservationists in those States can simply take possession in their home State if they wish to avoid paying sales taxes. The whole sales tax argument is a strawman debate for the most part.

No, the straw man is your "5 states with no sales tax" comment. 10 states have higher average state and local taxes than CA. Ignoring CA local taxes (which a non-resident wouldn't pay) reservation holders in approximately half of the 50 states pay more sales tax picking up in CA than at home.

California does not recognize NH 20 day transit plate.

Given the amount of misinformation you are splattering across this thread, you'll understand that I call BS on this assertion without evidence.

 

[Dynastar]

You can always move to Montana with 0% sales tax and balmy winters.

And I'd welcome you here. Having four seasons is actually kind of nice. Unfortunately many of my fellow Montanans are nativist a-holes.

 

[gambit48]

And I'd welcome you here. Having four seasons is actually kind of nice. Unfortunately many of my fellow Montanans are nativist a-holes.

Huh, really? No Midwestern hospitality? I know we're veering a little off topic, but since we're talking about how some other states are/aren't better than California... Montana has such beautiful scenery, nice high speed limits, and low taxes, it's a shame if many Montanans aren't welcoming to outsiders. The three families I've met from Montana (but moved here to my part of CA) are incredibly warm and welcoming. I know it's not a big sample size but it led me to believe they're super friendly up there. Montana is/was on my list of states I'd consider retiring to if I chose to leave CA.

 

[T34ME]

Ignoring CA local taxes (which a non-resident wouldn't pay) reservation holders in approximately half of the 50 states pay more sales tax picking up in CA than at home.

I agree with this statement. The difference between the average State sales tax and the California State tax is a few hundred dollars. If that difference is worth it to the AVERAGE out of State reservationist to pick up the car in Nevada or Oregon by all means do it. You and I both know you want to come to California afterwards to visit the factory, visit San Francisco (one of the greatest cities in the world), visit the wine country, and drive across the GG bridge. You will be spending your tourist dollars in California anyway.

Given the amount of misinformation you are splattering across this thread, you'll understand that I call BS on this assertion without evidence.

Hey, you were the one who brought up the NH 20 day permit in California without any evidence. Time for you to put up some evidence! Is everyone in NH as coarse as you are?

The three families I've met from Montana (but moved here to my part of CA) are incredibly warm and welcoming. I know it's not a big sample size but it led me to believe they're super friendly up there. Montana is/was on my list of states I'd consider retiring to if I chose to leave CA.

There are exceptions to every presumption! Since you are from California, I am confident he would consider you a "nativist a-hole." (Such coarseness on the forum this morning........... shows a lack of erudite vocabulary.) I have never visited Montana but it WAS on my bucket list. I don't know, it appears that a "nativist" like me would not be welcome there - especially with what my California vanity plate says!

 

[adhoc]

Nevada gave TESLA tax incentives, speedy ramp-up, rail access, and low humidity.

low humidity? really a reach! TSLA went to NV cause brown was greedy and DIDN'T offer tax incentives...
imagine the boost in keeping jobs in CA?

I must not be brilliant either because I support Jerry Brown and how he brought California from the brink of bankruptcy under the FUDinator to prosperity and a world economic power. Don't like California? You can always move to Montana with 0% sales tax and balmy winters. Many TESLA purchasers will come to California for one reason or another eventually despite the 7.25% tax. Who wouldn't want to see the birthplace of their world changing car at ground zero?

it has nothing to do with my like or dislike of CA.
it has everything to do with the taxation polices of CA.
your above statement is illustrative of CA legalizing MJ.
who in their right mind is going to pay an extra 7.25%
to a state they don't live in, especially considering their
state doesn't try and RAPE in reciprocity?

no matter how you wrap this, it's still a t*rd!

 

[Reeler]

I need to correct everyone here. CA is the center of the universe. Galileo was wrong.

Joking aside, it is hard to have this discussion with the CA fanbois interjecting their non-sense. I was born in California, but left as soon as I could. I still visit and have a beach house there, but I will never live there again.

I buy cars all the time and certainly would have done several delivery trips to CA to buy some of the 4-6 Teslas I have owned or have on order. Their tax greed is really pathetic, but just add it to the list of reasons I left.

 

[T34ME]

I was born in California, but left as soon as I could. I still visit and have a beach house there, but I will never live there again.

Thank you for paying California property tax, California sales tax while you are here, and enjoying our beautiful beachside vistas. You are helping to keep California Great Again. It can't be too bad if you still own a beach house here!

We look forward to seeing you again here this winter!

 

[Big Dog]

it is hard to have this discussion with the CA fanbois interjecting their non-sense.

Not a fanboy by any stretch. Instead, I am a firm believer in the 'laboratories of democracy'. We have 50 states and 50 different taxing mechanisms. The fact that California has a different sales tax than Massachusetts or Arizona or New Hampshire is just not worth getting excited about, IMO.