California Sales Tax on MY Lease, is this right?

[Imcho]

I know the pros & cons of buying versus leasing, which I don’t want to discuss here. I chose to lease a MY. Love the car so far. I just received my first monthly lease bill and it was a little higher than originally stated. I emailed Tesla Financial about it and the response I received was that the sales tax is 9.25% to explain the total amount. Hmm... the last time I checked, sales tax in CA for auto is 7.25%? Even if you went with our local higher tax in Palm Desert, it is 7.75% sales tax. Am I missing something?

 

[whisperingshad]

I know the pros & cons of buying versus leasing, which I don’t want to discuss here. I chose to lease a MY. Love the car so far. I just received my first monthly lease bill and it was a little higher than originally stated. I emailed Tesla Financial about it and the response I received was that the sales tax is 9.25% to explain the total amount. Hmm... the last time I checked, sales tax in CA for auto is 7.25%? Even if you went with our local higher tax in Palm Desert, it is 7.75% sales tax. Am I missing something?

It is based off the city you reside/registered in.

 

[wraithfive]

I know the pros & cons of buying versus leasing, which I don’t want to discuss here. I chose to lease a MY. Love the car so far. I just received my first monthly lease bill and it was a little higher than originally stated. I emailed Tesla Financial about it and the response I received was that the sales tax is 9.25% to explain the total amount. Hmm... the last time I checked, sales tax in CA for auto is 7.25%? Even if you went with our local higher tax in Palm Desert, it is 7.75% sales tax. Am I missing something?

Your missing the fact that your sales tax increased to 9.25% in 2018 apparently.

Sales Tax | City of Palm Springs

sales tax, measure j, board of equalization

www.palmspringsca.gov

EDIT: Sorry, I got Palm Springs instead of Palm Desert. Having said that, same county it looks like. Maybe Tesla made the same mistake? Or are you sure your car is registered correctly in Palm Desert instead of Palm Springs?

 

[Watts_Up]

Does the sale taxes are calculated based on the full price of the car or the initial lease amount and divided on the number of payments,
or based on the monthly payment?

When getting a lease, if you have an option like the $10,000 FSD, do you get charged for the full amount or only a pro-rata value?

 

[Srad600Volt]

Your missing the fact that your sales tax increased to 9.25% in 2018 apparently.

Sales Tax | City of Palm Springs

sales tax, measure j, board of equalization

www.palmspringsca.gov

View attachment 661930
EDIT: Sorry, I got Palm Springs instead of Palm Desert. Having said that, same county it looks like. Maybe Tesla made the same mistake? Or are you sure your car is registered correctly in Palm Desert instead of Palm Springs?

This is correct. My business partner and I both have leased Model Y's and our lease price went up on both. I was concerned and so we made a call, apparently California just raised sales taxes and that increase is why the monthly lease has gone up (by about $1.15 a month for us).

 

[whisperingshad]

Does the sale taxes are calculated based on the full price of the car or the initial lease amount and divided on the number of payments,
or based on the monthly payment?

When getting a lease, if you have an option like the $10,000 FSD, do you get charged for the full amount or only a pro-rata value?

You pay tax monthly based off purchase price, if you move your payment can go up or down based off sales tax of address residing.

 

[Imcho]

Tesla wrote me back sayingthey used wrong rate and is correcting the sales tax rate.