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Bellevue Location no longer doing deliveries?
- Thread starter Mwy23
- Start date
gglockner
Member
whitex
Well-Known Member
gglockner
Member
That's not my experience when we took delivery of our MX in Lynnwood and our M3 in Seattle, both in 2022. Furthermore, when we switched our MX delivery from Bellevue to Lynnwood, they charged us another $175 or so. I'm not an accountant so I don't know if this was correct.
whitex
Well-Known Member
When I bought last two cars this year (not Teslas), one of them was out of state so taxes were assessed directly by DMV (had to white a large check when registering the car), based on my zip code. The other one was from a dealership in Bellevue, but they still charged me tax based on my northern zip code. Maybe Tesla accounting software works differently?
I was reading on this a little as we just bought a used 3 out of state, and I think this is the way it is designed (the state laws, not tesla software) to work. Not ideal for sure, but those are the rules.
No, for in state purchases, WA charges sales tax based at location of sale (ie dealer location). For out of state purchases, you'll pay use tax based on your registration address.
whitex
Well-Known Member
Interesting. What about sales tax on a lease payment (charged on every lease payment, goes up if sales tax in a state goes up)? Is it based on dealer, or registration address?
Per DoR:
Lease or rental of tangible personal property
Lease or rental of tangible personal property depends on the following:Lease or rentals that do not require recurring payments
- If a single payment is made and the person renting the equipment (lessee) picks up the equipment at the location of the business renting the equipment (lessor), then the lessor’s location determines the code and local tax rate.
- If a single payment is made but the equipment is delivered to the lessee at another location, the code is determined by the location where the lessee receives the equipment.
Lease or rentals that require periodic payments
- If the item is leased for a length of time and periodic payments are made, the first payment is coded to the location where the lessee receives the equipment, normally the lessor’s business location. All subsequent payments are coded to the primary property location.
Also remember, the state chargers more for sales/lease tax on vehicles. An extra 0.3% to be exact. See RCW 82.08.020(3).
Also if you had a Tesla delivered to your home from a dealer instead of picking it up, it is possible they charged you your home sales tax rate, but typically dealer purchases are the location of the dealer.
whitex
Well-Known Member
Thanks. Last question, I leased a car from a dealer, I bought it before making the first payment (though there might have been a first payment included in the origination of the lease). What should have determined the tax rate on the buyout price? Dealer location, leasing company location, car's registered address location? Not a hypothetical situation, just did that recently, but still waiting for title and final paperwork. The lease was to capture a $7,500 lease incentive (not a Tesla).
That's a good question, I'm guessing since the item in question is physically in your possession it would be home sales tax rate. Usually the location of the tangible property at time of transaction is the deciding factor. I can't say I'm an expert on leases.
Fortunately our state the sales tax rates aren't usually that different throughout the state only varying by a percent or two (I think highest is currently 10.6 which is like Lynnwood and such and lowest is 7.5 in unincorporated areas of mostly rural counties in eastern WA). 3% delta isn't nothing, but a lot of sales tax states are much worse. Certainly living in unincorporated parts of counties can save you a lot of money over time if you buy a lot online
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whitex
Well-Known Member
Technically I do live in an unincorporated part (found that out when calling the police a while back, turns out only she county sheriffs covers my house), yet the sales tax rate is on the higher end (I don't recall exact, but it was over 10%, like 10.3% when I registered out of state EV purchase), including falling into the RTA tax zone which is costing me over a couple of grand extra annually just for car plates (4 cars at home). Governments keep wanting more and more money.Certainly living in unincorporated parts of counties can save you a lot of money over time if you buy a lot online
rpo
Member
When I bought my MX in 2022, Tesla made me pick it up in Lynnwood, and I was charged the (I think) 10.25% sales tax despite living in Bellingham where it should have been nearly 2% less. I tried arguing it and they said the state requires the rate to be where delivery takes place.
I just took delivery in Lynnwood and the tax appeared to be 10.9%. I was surprised it was that high but I can't say I'm up to date on local tax rates. Anyone have any idea if that was correct?
The delivery specialist did say it would have been .3% less had I taken delivery in Fife where I was originally scheduled to take delivery, but due to various delays, I ended up taking an inventory car that was already in Lynnwood, so it didn't seem worth the hassle to wait longer for "my car" to be delivered to Fife.
The delivery specialist did say it would have been .3% less had I taken delivery in Fife where I was originally scheduled to take delivery, but due to various delays, I ended up taking an inventory car that was already in Lynnwood, so it didn't seem worth the hassle to wait longer for "my car" to be delivered to Fife.
Lynnwood is the highest sales tax in the state. Cars also get a bonus 0.3% over regular retail rates.
whitex
Well-Known Member
Sounds about right. I bought a couple of (non-Tesla) cars in 2023, the tax rate was about that (almost 11%, slightly higher for gasoline vehicles). WA taxes have been going up as people vote in more and more government spending. Just annual plates are costing me ~$4K a year on 4 cars. We now have a payroll tax (so no deductions allowed), capital gains tax, EV taxes, increased tolls, increased property taxes, and until recently some cities were talking about adding a separate income tax (but that was banned by recently passed legislature).
Okay thanks. I just googled and Lynnwood tax rate is 10.6% so when you add the .3%, it comes to 10.9% which is what I was charged. I was unaware of the .3% additional tax on cars, but figured there might be something like that. Thanks for pointing that out.
Fife's base tax rate is 10.2% so the delivery specialist was slightly off as the difference is .4%, not the .3% that he quoted me.
Seattle's base tax rate is 10.25%. So Fife is the cheapest option, but not much different than Seattle. Main thing is to avoid taking delivery at Lynnwood if you want to save something in the $100-400 range, depending on what car you are getting.
Both Bellevue and Renton have a 10.1% base tax rate so they would have been the cheapest but Tesla is no longer delivering cars in those jurisdictions so the point is moot.
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