-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Colorado Tax incentive
- Thread starter tvcraig
- Start date
SageBrush
REJECT Fascism
It is indeed used, but the Colorado tax credit applied to used cars also, until it was changed for Jan 1st and later. Thus my interest in the implementation details of the old credit ;-)
SageBrush
REJECT Fascism
Not order date -- purchase date.
You are welcome to argue with the Colorado DOR, but I'll keep my fingers crossed that the clerk who gave me the information over the telephone is the one who processes my tax credit
$4168.00 = state taxes (These were paid when I picked up the car.)
$3814.50 = county/city taxes (These were paid when I registered the car.)
$7982.50 = total taxes
The $1963.55 was the registration (plates, road fees, bridges fees, EV fee, etc.) and paid in addition to the sales tax.
One other tidbit...besides receiving the $6000 state tax credit and $7500 federal tax credit, I was able to claim a larger sales tax deduction, increasing my refund even more.
Last edited:
SageBrush
REJECT Fascism
Gotcha -- thanks.
I'm really not trying to hound you, it just seemed like a break-down would be helpful to other Coloradans.
I think it breaks down this way then:
4% of msrp for state taxes
2.1% of 85% of msrp for registration
1.65% of msrp for Gunnison local taxes (city/county)
~ $150 for plates, etc
I think one thing is for sure: the folks hoping to have Colorado underwrite a purchase of a Tesla for use in another state are going to be disappointed.
Not a problem. I'll add that my 7.75% was for the town of Morrison in Jefferson County. A friend in unincorporated Douglas county only had to pay like 4-5% total in sales tax. With his tax savings (vs. what I paid), he was able to add a couple options that I didn't get on my car! Taxes and registration can vary greatly across the state.
Not order date -- purchase date.
You are welcome to argue with the Colorado DOR, but I'll keep my fingers crossed that the clerk who gave me the information over the telephone is the one who processes my tax credit
Yeah, I was mistaken. Purchase date is correct for Colorado. Delivery date is only for Federal.
I think I read that for used cars, the car can not be previously titled in CO to get the state credit. I.e. CO won't pay a credit more than once for the same vehicle. Not positive that applies to pre 2017 purchase though.
SageBrush
REJECT Fascism
Right about the credit -- only once per car.
Used cars purchased after Dec 31st, 2016 are no longer eligible for the CO state EV credit.
My sales tax was similar. Sagebrush must live in an unincorporated area outside the metro area.I just paid my registration and taxes last month. Where I live, the taxes came out to 7.75% or about $7,982.50. The state taxes of $4168 were included in this and paid when I picked up the car. Registration was $1,963.55. I'll get the full $6000 back so that helps offset a large percentage of the taxes paid. I actually calculated everything in advance and was off by about 50 cents from what I was actually charged. The clerk at the DMV was shocked and when she wrote the total down and passed the number to me, I told her that's pretty much exactly what I expected to pay.
I probably don't need to mention this, Morrison, but might as well
Don't forget to compare your state income tax to sales tax for deduction on the Federal. Being retired, I got the use the sales tax deduction for the first time, for my 2015 taxes.
dgpcolorado
high altitude member
Lower sales tax for me: in my rural location all I pay on car purchases is the 2.9% state sales tax — it has always been this way, I've lived here a long time. Ouray County has a 2% sales tax but it isn't charged on cars for some reason (it is charged on electricity bills though).
Just finished my federal tax return and have to figure out how to file the state return. I prefer e-filing but there is so much paperwork required for the state tax credit I guess I will have to mail in a paper return with all the supporting documents. Unless they can accept images of all the documents when e-filing, which I doubt.
SageBrush
REJECT Fascism
Yep, outside metro. Outside any town, for that matter ;-)My sales tax was similar. Sagebrush must live in an unincorporated area outside the metro area.
I probably don't need to mention this, Morrison, but might as well
Don't forget to compare your state income tax to sales tax for deduction on the Federal. Being retired, I got the use the sales tax deduction for the first time, for my 2015 taxes.
You make a good point about considering sales tax, but that applies to people who are itemizing deductions, right ?
I've always done mine on paper. I pay quarterly estimated taxes and usually owe a little more on 4/15 (except last year due to the EV credit), so I see no reason to make the taxing authority's life easier by filing electronically, without any incentive to do so. And Colorado's system is so convoluted with the online account establishment and the need to email attachments of supporting documents. My feeling is if it's all stapled together, they are less likely to lose parts of it.
Last year, Colorado was a comedy of errors. First, they charged me an underestimation penalty, when I wound up getting a refund. The conversation went something like this:
"How can you charge me an underestimation penalty when I overpaid and got a refund?"
"You can't consider your EV credit when figuring your quarterly estimated taxes, only earned income"
"I had no earned income. I'm retired"
"Oh, that's a good point."
And they reversed the penalty. Then, they sent me a refund check instead of applying it to Q1 2016, as I requested on the form, so then I had to readjust my next 3 quarters' payments. I'm waiting to see if they give me grief for the unequal estimated payments for 2016, but I have dates of conversations and names, in case they do.
Yes.
dgpcolorado
high altitude member
Checked with my county Clerk and Recorder, a longtime friend, and found that it depends on whether the tax is a "sales tax" or a "sales and use tax." Most Front Range counties and municipalities, and the state, use sales and use taxes. Those apply to things purchased inside or outside of the taxing area (store is elsewhere and delivery is in the tax area). A pure sales tax applies only for purchases from a store inside the taxing area. Our county sales tax is not a use tax so it doesn't apply to things purchased outside the county and delivered to the county. Didn't know that before.
In the case of cars, the use tax is applied based on the rate at the home location (did know that).
By the way, the "ownership tax" portion of the annual registration fee is technically a personal property tax that stays in the county and is distributed to the various property taxing authorities. It doesn't go to the state.
Last edited:
dgpcolorado
high altitude member
Turns out that it is really easy to efile a Colorado tax return, plus the tax credit form DR0617, and include image files of the required supporting documents (purchase invoice, "Vehicle History Report" [Carfax or equivalent], and vehicle registration form). Whether the DOR handles it correctly remains to be seen.
I just uploaded my documents yesterday.
Note: The vehicle history report is only required when claiming the tax credit on used cars.
dgpcolorado
high altitude member
dgpcolorado
high altitude member
Although I signed up for a bank account deposit of the tax credit, the DOR sent me a check instead; the accompanying letter said it was to discourage refund fraud. Regardless, I got the tax credit for my CPO Model S with no fuss, given the required documentation images I had submitted online with the tax return and tax credit form.
The online income tax filing is way easier and more efficient than it was even a few years ago. The DOR has made a lot of improvements in online filing in recent years.
The online income tax filing is way easier and more efficient than it was even a few years ago. The DOR has made a lot of improvements in online filing in recent years.
Previous posts in other threads indicate there is a 1500 mile limit in Colorado on inventory cars. After that, Colorado wouldn't let you register them as new. Here are a couple threads that mention the 1500 mile limit:
Buying a Colorado Inventory Tesla...Check Odometer
Anyone who plans to lease should read this
You might also call the Park Meadows store and confirm with them.
Last edited:
Similar threads
- Article
