Connecticut -- Latest News on Tesla's efforts in the State

[SMAlset]

Well unfortunately, on December 6 a Judge ruled against Tesla in the State's case against Tesla's Greenwich gallery location. From yesterday's Hartford Courant news story: Connecticut judge says Tesla illegally sold cars from Greenwich gallery

Article in CTpost: Judge: Tesla is selling out of Greenwich “gallery”

No doubt Tesla will appeal the latest ruling.

 

[Driver Dave]

Seriously, what country do we live in?

My huge dislike of dealers and the laws they write grows more every day.

Face it dealers, it's over.

And it is not Tesla. It's Amazon.

People don't want to deal with people when buying something.
Just give me a price, let me click buy, and then send it to me.

That is where things are going.

The time where a "dealer" is between you and the seller seeing how much money they can skim off the deal, is over.

CT better get with the times and stop letting dealers run things there like they are some sort of communist party in charge of everything.

 

[Nikxice]

One positive, CT now has a governor-elect who believes in a free market and has stated he supports Tesla sales. Unlike many state legislators, wealthy businessman Ned Lamont doesn't need the campaign donations/discounted SUV bribes regularly doled out by desperadoes within CARA. Hope he speaks out and exerts pressure during the 2019 legislative session.

 

[Doug_D]

As a CT resident i read the OPs article the other day and its still sickens and saddens me that this state is so anti-Tesla.
I picked up my model 3 a few weeks ago in mt Kisco NY and i am still driving around with the temp CT plates but I paid the 6.35% CT state sales tax when i took ownership of my car and my town tax office will tax me accordingly. It makes no difference once i roll the car off of a "lot" at time of purchase since it is now not treated any different in this state as a car that can be purchased down the street. Heck I even applied for and was approved by the CT cheapr EV vehicle rebate. That is a state run program offering new EV and alternative fuel vehicles monetary incentives. I do hope that Ned starts a state wide reform on the practices of CARA. For the short term I do hope Tesla continues the promised supercharger rollout for CT with Waterbury and a few other locations promised by end of 2018 (lol yeah that wont happen but maybe ? soon)

Doug

 

[mociaf9]

As a CT resident i read the OPs article the other day and its still sickens and saddens me that this state is so anti-Tesla.
I picked up my model 3 a few weeks ago in mt Kisco NY and i am still driving around with the temp CT plates but I paid the 6.35% CT state sales tax when i took ownership of my car and my town tax office will tax me accordingly. It makes no difference once i roll the car off of a "lot" at time of purchase since it is now not treated any different in this state as a car that can be purchased down the street. Heck I even applied for and was approved by the CT cheapr EV vehicle rebate. That is a state run program offering new EV and alternative fuel vehicles monetary incentives. I do hope that Ned starts a state wide reform on the practices of CARA. For the short term I do hope Tesla continues the promised supercharger rollout for CT with Waterbury and a few other locations promised by end of 2018 (lol yeah that wont happen but maybe ? soon)

Doug

Do you not get charged the NY sales tax which amount would then be prorated against your CT tax bill? I'm not familiar with the specifics of these sales, but that's the way I'm used to seeing things run. So, in that type of system, CT would only actually collect any money from their sales tax rate being higher than NY's and would only get the added bit on top instead of the whole thing.

 

[Doug_D]

mociaf9, no i was not charged with any NY tax at time of purchase. perhaps its one of the ny laws for sale of vehicles to out of state buyers? But NY does have a higher tax rate than CT. A co-worker of mine purchased a car in Ohio a few years ago and paid tax to that state when picking up the car and when he registered it in CT he paid the difference in tax since CT was higher than Ohio,
Very confusing when you cross state borders. Doug

 

[tga]

mociaf9, no i was not charged with any NY tax at time of purchase. perhaps its one of the ny laws for sale of vehicles to out of state buyers? But NY does have a higher tax rate than CT. A co-worker of mine purchased a car in Ohio a few years ago and paid tax to that state when picking up the car and when he registered it in CT he paid the difference in tax since CT was higher than Ohio,
Very confusing when you cross state borders. Doug

Most states do not charge sales tax to non-residents who pick up cars that will be registered in another state. In those cases, you pay sales tax to your state of residence when registering the car. The only exceptions to this rule of thumb that I know of are MA and CA, both of which require sales tax to be paid to them for any car purchase where the buyer takes delivery in the state (MA or CA), regardless of the buyer's state of residence/where the car is ultimately registered. CT should give a dollar-for-dollar credit for sales tax paid to another state at purchase (ie, MA or CA), or at least they did 25 years ago when I was a CT resident.

NY and VT do not charge tax to non-residents picking up cars. I (and other NH residents I know) have bought cars from NY and VT dealers and were not charged tax, even though we picked up at the dealer's site in NY/VT.

 

[DD28]

Do you not get charged the NY sales tax which amount would then be prorated against your CT tax bill? I'm not familiar with the specifics of these sales, but that's the way I'm used to seeing things run. So, in that type of system, CT would only actually collect any money from their sales tax rate being higher than NY's and would only get the added bit on top instead of the whole thing.

I was told by the rep at Mt Kisco on 11/16 up that I was charged NY taxes, it takes about 10 days to process the title, and that I'd register the car with CT. (Title timeline has changed twice since then and still has no resolution), but I was never advised about CT taxes or any rebates, EV incentives, etc. I would advise anyone to go to any other Tesla center than Mt. Kisco. The customer service is, and continues to be, horrible. As a result, I'm doing my own research on titles, taxes and rebates. The Mt. Kisco experience has certainly made me wonder why I bought a Tesla at all.

 

[dipstick1]

As I CT resident I picked up my 3 in Mt Kisco July 18, They took car of everything from the Cheapr rebate to the CT registration , I was charged CT Sales Tax and left on a NY 30 day paper plate. Received my CT plates a few days prior to NY plate expiry in the mail , overall no issue with Mt Kisco delivery process.

 

[DD28]

you wouldn't happen to be a male under the age of 40? because they were the only ones I saw at Mt. Kisco get quickly assisted and frequently provided a status during my 2 hour wait for my scheduled appointment. I was told 10 days to get a title, not plates. Then I was told I'd get the title, not plates before the expiry, which is tomorrow. Yesterday i was told it will take 90 days. I'm busy today changing appointments and doing errands, as I don't expect I'll be able to drive this car on Monday, by which time I'll regret the purchase of the car, the stock I bought in this company, and probably regret that NiKola Tesla was ever born.....

 

[juliusa]

I picked up my car in Mt. Kisco. They charged the CT rate of 7.75% sales tax. I believe they pay 4% to New York State (that is the state sales tax rate), and the balance to CT when they register the vehicle. CT gives a credit for the 4% sales tax paid to NYS.

My CT tags came FedEx from Tesla. I expect I will get my CT title in the mail in a month or so.

 

[mongo]

Most states do not charge sales tax to non-residents who pick up cars that will be registered in another state. In those cases, you pay sales tax to your state of residence when registering the car. The only exceptions to this rule of thumb that I know of are MA and CA, both of which require sales tax to be paid to them for any car purchase where the buyer takes delivery in the state (MA or CA), regardless of the buyer's state of residence/where the car is ultimately registered. CT should give a dollar-for-dollar credit for sales tax paid to another state at purchase (ie, MA or CA), or at least they did 25 years ago when I was a CT resident.

NY and VT do not charge tax to non-residents picking up cars. I (and other NH residents I know) have bought cars from NY and VT dealers and were not charged tax, even though we picked up at the dealer's site in NY/VT.

A Michigan resident purchasing out of state will pay sales tax to that state (at least the local ones and CA). If the other states's tax rate is less that 6%, purchaser will pay the difference to MI. However, Michigan never gets the first portion of the tax back.

 

[tga]

They charged the CT rate of 7.75% sales tax.

I thought CT was 6.35%? My parents (who live in CT) put down a deposit on an inventory 100D, picking up in Mt Kisco. I'll report how it goes...

 

[juliusa]

I thought CT was 6.35%?

That is correct for cars up to $50,000. For cars over $50,000 the sales tax is 7.75%.

 

[tga]

That is correct for cars up to $50,000. For cars over $50,000 the sales tax is 7.75%.

Well, isn't that nice of them. And you don't get the state rebate. Get ya coming and going...

 

[wcorey]

Do you not get charged the NY sales tax which amount would then be prorated against your CT tax bill? I'm not familiar with the specifics of these sales, but that's the way I'm used to seeing things run. So, in that type of system, CT would only actually collect any money from their sales tax rate being higher than NY's and would only get the added bit on top instead of the whole thing.

I took delivery of my Model 3 about the same time, Nov 7. They took out for CT sales tax. They registered the car in CT which is where the sales tax must paid. I did check what Tesla charged me for sales tax and it was, to the penny, identical to the CT rate for a car over $50k. It took 2 months to get my new registration but the car is registered for 2 yrs in CT. Does the CT EV credit get processed during state income tax filing or is it separate?

 

[juliusa]

They registered the car in CT which is where the sales tax must paid.

Do you have something showing the tax jurisdiction to which the tax was remitted?

I also got charged 7.75% tax on my car picked up in NY and registered in CT. My understanding is NY charges NYS sales tax of 4% for cars purchased in the state, and then CT charges the difference upon registration. Nothing in my documentation says where the 7.75% sales tax went.

From CT DMV: Out-of-State Purchases - Credit for sales tax paid out-of-state will be granted if the registrant provides supporting documentation (purchase invoice and tax receipt) showing submission of sales tax to the appropriate state agency. If the registrant paid less than 6.35% (or 7.75% for vehicles over $50,000) sales tax in another state they will be required to pay the additional tax to DMV when the vehicle is registered.

From NY DMV: Nonresident purchasers may purchase a motor vehicle exempt from sales tax by providing to the dealer a properly completed Form DTF-820, 27 Publication 838 (12/12) Certificate of Nonresidency of New York State and/or Local Taxing Jurisdiction. Purchasers must certify that they: • are not residents of New York State; • do not have a place of abode in this state; • are not carrying on any employment, trade, business, or profession in this state in which the motor vehicle will be used; and • are not registering the motor vehicle in New York State (including ay temporary registration). If the transaction fails to meet any of these conditions, the purchase is subject to sales tax. In addition to receiving Form DTF-820, the dealer must indicate on DMV Form MV-50 that the sale was made without collecting New York State sales tax.

Since I did not complete NY form DTF-820, I assume the NY dealer (Tesla) was required to collect the 4% NYS sales tax at time of purchase. They also gave me NY temp tags, which would also require them to collect NYS sales tax. When they registered and titled the vehicle on my behalf in CT (I signed a form with limited POA so they could do this), I assume they paid the difference (3.75%) to CT.

 

[juliusa]

Does the CT EV credit get processed during state income tax filing or is it separate?

What CT EV rebate is that?

 

[wcorey]

Since I did not complete NY form DTF-820, I assume the NY dealer (Tesla) was required to collect the 4% NYS sales tax at time of purchase. They also gave me NY temp tags, which would also require them to collect NYS sales tax. When they registered and titled the vehicle on my behalf in CT (I signed a form with limited POA so they could do this), I assume they paid the difference (3.75%) to CT.

I can not respond knowledgably on this as I did not register the car, they did. I am going to assume it all went to CT. If only part of it did, shame on CT legislature for not allowing sales in CT. Hopefully that will change this spring. Whether it is a state tax credit, rebate, incentive is immaterial. I assumed it was as prior to purchase information from multiple sources said CT had an EV purchase 'benefit' / subsidy / credit / rebate whatever. Given federal was a credit it was reasonable to assume CT had a similar plan. It looks like CHEAPR is a Power company plan not governmental. I won't actually know if CT government has an EV incentive, for certain, until I file taxes end of month. Unless, of course, somebody definitively knows, as opposed to presumes.

 

[juliusa]

If only part of it did, shame on CT legislature for not allowing sales in CT.

Did you fill out the NY form? If not, Tesla paid sales tax to NY.
Did you get NY temp tags? Is so Tesla paid sales tax to NY.

Yes, shame on the CT legislature. Exporting tax revenue and jobs to New York. I'm sure Cuomo is very happy.