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Best Location to Purchase M3 w/ Lowest Sales Tax

Discussion in 'Model 3' started by magnolia.mouse, Aug 21, 2017.

  1. magnolia.mouse

    magnolia.mouse New Member

    Joined:
    Aug 21, 2017
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    Location:
    San Jose
    Looks like the lowest sales tax in CA is 7.25% in some places.

    Is anyone looking at this as a method to save almost $1k (YMMV)?
     
  2. dsvick

    dsvick Active Member

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    Location:
    NE Ohio
    I don't know how well that strategy will work. In most states you will end up paying whatever the sales tax is where you live regardless of where you actually conclude the sale and take delivery. For example if you buy it somewhere where you only need to pay 7.25% but your local tax rate is 8%, you will most likely end up paying the difference when you register it at home.
     
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  3. kengchang

    kengchang Member

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    Jul 17, 2017
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    Location:
    Los Angeles
    Sales tax is based on your registration address in California
     
  4. Az_Rael

    Az_Rael Supporting Member

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    Location:
    Palmdale, CA
    In California no matter where you buy the car in the state, you are charged the rate for the county you live in. So I can buy a car in Kern County, which has a lower rate than LA County, but they still charge me the LA County rate.

    So you would have to establish residency in said county.
     
  5. ACA Man

    ACA Man Member

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    Correct.
     
  6. Rossy

    Rossy Supporting Member

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    Location:
    Hillsboro,Oregon
    Sales tax? On a car? Not in Oregon, we don't believe in that. :).
     
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  7. magnolia.mouse

    magnolia.mouse New Member

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    Aug 21, 2017
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    Thanks everyone!
     
  8. T34ME

    T34ME Member

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    Location:
    Here
    No, you believe in outrageously high property tax, year after year after year...........

    States and local jurisdictions get their taxes from three primary sources - Use (sales) tax, Property tax, and Personal income tax. Eliminate one and the other two are increased to make up the difference (in most cases).
     
  9. 206er

    206er Member

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    Location:
    Seattle, WA USA
    In Washington, our state sales tax on the first $32k of any EV msrp'd at $42,500 or less is exempt. I think our vehicle sales tax is 6.5%. And you still have to pay the approx .03% (I think) county tax.

    Tentatively planning to pay around $205 in sales tax for my Model 3. Think I paid around $2,000 for my Acura 4 years ago.
     
  10. tsla007

    tsla007 Member

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    Location:
    CT
    The one and only NH. Best place to buy anything. No sales tax on anything. Only housing and land property tax.
     
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  11. Rossy

    Rossy Supporting Member

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    Sure, you can't avoid paying taxes... but Death! I'm sure to cheat that.
     
  12. Trips

    Trips Member

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    Omaha, NE
    If you want a really good deal you need to register it in Montana. A good percentage of million dollar cars are registered there.

    Ferrari F60 - 2
    LaFerrari - 14
    Koenigsegg - 1
    Aventador - 58
    McALaren P1 - 24
    Pagani Huayra - 5
    Porsche 918 - 42
     
  13. codex57

    codex57 Member

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    Well, I'm in one of those areas so I don't plan on doing much.

    The people I know who attempt this don't bother with California at all, they just register in Oregon.
     
  14. cpa

    cpa Active Member

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    Yeah, I had a client contact me about two years ago about this. He found this law firm that promotes SMLLCs based in Montana. The firm charges a set-up fee and an annual reporting fee. Apparently, sales taxes and annual registration fees in Montana are pretty low. He decided against trying this tactic.

    It all goes to intent and purpose. If your car is garaged in your home state, and you have zero ties to Montana, it seems to me to be a prima facie case of fraud.

    Many years ago I lived in Shasta County. It was pretty common for residents of the north state to buy their cars in Oregon to save on sales tax and registration fees. They would use an address of a friend or relative. CHP did a major sting operation there and netted an astronomical amount of money from those individuals. In fact, there is a reporting form on the CHP website to report California residents with out-of-state plates on their cars.
     
  15. HopeToGolf

    HopeToGolf Member

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    No sales tax in NJ on EV. Howeva.....the property taxes are dreadful. :mad:
     
  16. C141medic

    C141medic Member

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    Location:
    New Jersey
    Agreed. This is one of the few tax breaks NJ gives especially when purchasing a vehicle. That's why I'm getting my M3 fully loaded with the exception of FSD.
     
  17. Jason Bourne

    Jason Bourne Member

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    Location:
    Philly
    Same in PA - doesn't matter where you bought the car. If you're registering it in PA, you pay the PA (plus any local) sales tax.
     
  18. hockeythug

    hockeythug Active Member

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    Montana is the new Delaware for incorporating.
     
  19. mwoody999

    mwoody999 Member

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    Location:
    CO
    Sales tax of 7.65% in CO gets evened out when the flat considering $5000 CO EV tax credit.
     
  20. mwoody999

    mwoody999 Member

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    Location:
    CO
    Sales tax of 7.65% in CO gets evened out when considering the flat $5000 CO EV tax credit.
     

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