California Purchase Laws my have just ruined my MS85 AP1 purchase!

[NateGordonJr]

So as of yesterday, I began working with an OA and she’s been great so far! She found me an amazing MS85 w/AP1 in my range, only issue is it’s in California. So in my head I’m thinking no big deal at all: I’ll catch a 1-way flight to Cali, take delivery, and drive the car back to Texas where it’ll be registered. Wrong! The OA informs me that Cali has some kind of restrictions to where if you take delivery in the state, you must pay a sales tax (I’m assuming that’s what she meant), before allowing me to take the car home where registration & taxes will have already been paid for.

Has anyone else ever run into this personally or can shed some light here??

 

[jddssc121]

cheaper to have Tesla txf it

 

[GWord]

Texas will deduct the CA tax paid from your TX sales tax bill. Cali has a marginally higher rate which would result in you owing zero state sales tax in Texas. You should calculate if the difference between the two states, plus travel expenses, is less than the Tesla delivery fees. In my case it was cheaper overall to have Tesla deliver, although the road trip would have been fun.

Example:
Purchase Price: $100k
CA Tax: $7500 (7.5%??)
TX Tax: $6250 (6.25%)
Difference: $1250

Tesla Delivery Charge: $2000

So if you can get to Cali and back, with your Tesla, for less than the $750 difference then you're ahead. In my case Tesla waived the delivery fee simplifying the decision.

 

[Tam]

...if you take delivery in the state, you must pay a sales tax...

That has been known since the early days of Tesla. CA was trying to introduce a bill to repeal that practice for visitors but it was defeated.

 

[Zorg]

In Fremont, the sales tax rate is 9.5% or so.

 

[meomyo]

cali is bankrupt-they need all the cash they can get to feed the fat pigs.

 

[Zorg]

Or get it delivered in Nevada.

 

[GWord]

Or get it delivered in Nevada.

Still get hit up by the Sheriff of Nottingham in TX.

 

[NateGordonJr]

Texas will deduct the CA tax paid from your TX sales tax bill. Cali has a marginally higher rate which would result in you owing zero state sales tax in Texas. You should calculate if the difference between the two states, plus travel expenses, is less than the Tesla delivery fees. In my case it was cheaper overall to have Tesla deliver, although the road trip would have been fun.

Example:
Purchase Price: $100k
CA Tax: $7500 (7.5%??)
TX Tax: $6250 (6.25%)
Difference: $1250

Tesla Delivery Charge: $2000

So if you can get to Cali and back, with your Tesla, for less than the $750 difference then you're ahead. In my case Tesla waived the delivery fee simplifying the decision.

Oh wow... that just ruined my day. I know I’m going to miss out on this steal of a deal and once that train leaves the station its not coming back

 

[NateGordonJr]

Or get it delivered in Nevada.

Trust me I asked about that as well. She kindly informed me I’d still have to pay $1,000 to have it shipped there and I’d still have to pick it up.

 

[Zorg]

Is the $2k delta ruining the equation? How much is the car?

 

[ThisIsTrue]

Yep, if you buy a jacket in California, you have to pay sales tax on it -- even if you promise not to wear it until you're back home.

 

[GWord]

Oh wow... that just ruined my day. I know I’m going to miss out on this steal of a deal and once that train leaves the station its not coming back

No free sales tax lunch with that strategy. I was successful in arguing for a TX sales tax exemption via statute 152.090. If you're feeling persuasive have at it. This might help: Meet the ‘Hesla,’ a modded Tesla Model S that runs on hydrogen fuel

 

[NateGordonJr]

Yep, if you buy a jacket in California, you have to pay sales tax on it -- even if you promise not to wear it until you're back home.

Well sure, that’s a complete given. No different than here in Texas. But if you come buy a car here in TX, we don’t hold you hostage. You’re free to drive back to your home state and register it.

 

[NateGordonJr]

No free sales tax lunch with that strategy. I was successful in arguing for a TX sales tax exemption via statute 152.090. If you're feeling persuasive have at it. This might help: Meet the ‘Hesla,’ a modded Tesla Model S that runs on hydrogen fuel

Why did you have to end up doing that, if by paying Cali tax it canceled out the TX tax? I’m assuming I’ll learn that answer by reading the thread above..

 

[pdxgibby]

I bought a new car in Indiana and was able to convince the dealership to not charge me sales tax at delivery, that I would pay them at registration time. Since I was immediately moving to Oregon (no sales tax), I avoided sales tax on that car completely.

 

[GWord]

Why did you have to end up doing that, if by paying Cali tax it canceled out the TX tax? I’m assuming I’ll learn that answer by reading the thread above..

I am mixing two different Tesla purchases in my anecdotes here. One purchase I had the tax waived. My other purchase I contemplated a Cali delivery to save on transport costs (I ultimately took delivery in TX on that one as well because of the free delivery I was offered).

 

[GWord]

I bought a new car in Indiana and was able to convince the dealership to not charge me sales tax at delivery, that I would pay them at registration time. Since I was immediately moving to Oregon (no sales tax), I avoided sales tax on that car completely.

NateGordonJr, I believe we have found your answer. You will need to move to Oregon. Tesla Motors Club to the rescue yet again!

 

[NateGordonJr]

I bought a new car in Indiana and was able to convince the dealership to not charge me sales tax at delivery, that I would pay them at registration time. Since I was immediately moving to Oregon (no sales tax), I avoided sales tax on that car completely.

Criss Angel, that you? That’s a magic trick if I ever saw one lol

 

[NateGordonJr]

I am mixing two different Tesla purchases in my anecdotes here. One purchase I had the tax waived. My other purchase I contemplated a Cali delivery to save on transport costs (I ultimately took delivery in TX on that one as well because of the free delivery I was offered).

I need to borrow that rabbits foot from you, plz lol. You have been in some fortunate circumstances..