Delivery Dilemma - AZ Sales Tax

[fluxemag]

Just finalized my car last night, very excited. 40kWh/Standard Suspension/White/Black Leather/Lacewood/Stereo Upgrade/Pano Roof/19". I am P14875 and got a rough estimated delivery window of May-June. When I put down my deposit I was figuring November, but this is a welcome surprise. The interesting thing is that AZ has a temporary 1% sales tax which is set to expire on May 31st. So I'm really hoping to get the car June 1st. I wonder what day is used to calculate the sales tax rate to use. Is it the day I register the car at the MVD? Do they use the date I paid for the car, or when it was delivered? I read in the Pre MVPA that delivery can be deferred up to 30 days from being notified. It's not a huge deal, but I can wait another week or two to save $600-700. That would be a nice stack of coins to throw at a new set of wheels or a subwoofer for the frunk.

 

[jomo25]

Is that temp tax a municipal tax? Tesla is only charging the state sales tax, regardless of municipality.


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[fluxemag]

State of AZ tax rate declines from 6.6 to 5.6% on June 1st of this year. Prop 204 failed to extend the temporary 1% statewide sales tax increase.

Voters decide Arizona sales tax should go back to 5.6% - Inside Tucson Business: News: arizona, proposition 204, sales tax, tax, percentage

 

[Sousaphil]

Good question. I think the tax is charged with the effective date that you visit the MVD. I really don't think their systems are going to be complex enough to charge a variable sales tax rate. On June 1, I think everything will likely go to 5.6%.

In other news, you will love the low registration fees! Mine was just over $40 per year for 2 years.

 

[fluxemag]

Phil, I agree, my thought was they will probably just switch over the rate at the MVD and base it on when you show up. So worst case scenario I'll just get a 30 day general use tag to punt the ball down the field a ways. The $40 VLT will be a huge break compared to the $600 on my current car. I'll even get some money back for the remainder on my old plate.

-John

 

[gimmee2]

I had posted this in the Arizona thread but got no response. "Regarding the city sales tax, I think it depends on the city. I know Scottsdale will hit you up for a 'use tax' of 1.45%. I have purchased a couple of vehicles from out of state dealers and both times I received a letter from the City of Scottsdale a month or two after registering with the MVD requesting that I pay this. Go to Sales and Use Tax Information and click on the 'Use Tax' link. I don't see any exceptions listed for EVs but there very well might be. I'd be curious to hear from others in AZ (especially Scottsdale) who have had their cars for more than a couple of months to see if they've had to pay this." Do any of you fellow Scottsdale residents know if EVs are exempt from this tax?

 

[fluxemag]

Update...just registered my car yesterday. They charged me the old sales tax rate based on the estimated delivery date on the MVPA. Mine was 5/31! I actually got the car on 5/27, so technically this is fair, but they got me. I feel like it still might depend on who you get at the DMV. If I were to do it again I would wait a few months and stick with the temp tag. Maybe they will forget by then. Cost me an extra $800 I fully expect Scottsdale to hit me up next.

 

[irishstoutaz]

Bummer... thought they might do it based on the date. I am sure jomo25 will be interested in seeing this since he was holding off registering. Was the registration straightforward otherwise?

Update...just registered my car yesterday. They charged me the old sales tax rate based on the estimated delivery date on the MVPA. Mine was 5/31! I actually got the car on 5/27, so technically this is fair, but they got me. I feel like it still might depend on who you get at the DMV. If I were to do it again I would wait a few months and stick with the temp tag. Maybe they will forget by then. Cost me an extra $800 I fully expect Scottsdale to hit me up next.

 

[fluxemag]

Yeah, I hate losing. The icing on the cake was they don't take AMEX so I didn't even get my points. Other than that it was very easy. In and out in 20 minutes, with plate and registration in hand. She had a little trouble with the address from Aliant being different on their system than what Tesla had on the paperwork.

The calculation of tax took place on an accountant style calculator. She asked me "when did you get it?" and I didn't want to lie, even though I could have said "yesterday, the 2nd". I think if I had had a clerk who wasn't so sharp it wouldn't have been a problem. And since it was literally the first business day after the rate change it was probably fresh in everyone's mind. So I'd say wait a month or so. I almost left and said nevermind, but it was too late.

Bummer... thought they might do it based on the date. I am sure jomo25 will be interested in seeing this since he was holding off registering. Was the registration straightforward otherwise?

 

[irishstoutaz]

Thanks.. our paperwork is dated 6/8 so we will be good regardless but jomo25 may want to wait and possibly get the lower % if they aren't paying close attention.

Yeah, I hate losing. The icing on the cake was they don't take AMEX so I didn't even get my points. Other than that it was very easy. In and out in 20 minutes, with plate and registration in hand. She had a little trouble with the address from Aliant being different on their system than what Tesla had on the paperwork.

The calculation of tax took place on an accountant style calculator. She asked me "when did you get it?" and I didn't want to lie, even though I could have said "yesterday, the 2nd". I think if I had had a clerk who wasn't so sharp it wouldn't have been a problem. And since it was literally the first business day after the rate change it was probably fresh in everyone's mind. So I'd say wait a month or so. I almost left and said nevermind, but it was too late.

 

[jomo25]

VERY INTERESTING. As I posted in the AZ thread (in the Mountain/SW forum), I registered my car today. I went to the Larkspur MVD location (Scottsdale/Tempe area). I only got charged 5.6% sales tax, the new rate! Not sure why, and I wasn't going to quibble, but that's what I got charged. I was shocked because someone else had recently gone to that exact location and was charged 6.6%. I thought it was simply the clerk not realizing I had the car for a while, but she asked me specifically when my loan was initiated. I told her 4/12 (it actually started 6 days before I got hte car).

I also reg'd the car for 5 years since no emissions check will be needed, the VLT was $117 (I knew it would be cheap, but it was surreal getting that. My RS6 was over $1000 per year for a while. Also amazing getting an "18" sticker. I was issued a blue plate without inspection. Of course the Title said Electric, so, they didnt need to inspect it. They said I'd have to order a vanity plate online, which I will do I think. Though the plate# I got issued was actually kinda cool.

So, the BIG NEWS is I only had to pay 5.6% even though my car was delivered on 4/18.

 

[ZBB]

Glad to know they used the estimated delivery date. Mine was delivered this week (tues) and I had an estimated delivery of 6/2. But my MVPA was dated May 23 and payment was received May 30...

sounds like Jomo got lucky!

 

[irishstoutaz]

That is great news and saved you a bit of coin! I think we will also be registering for 5 years given the low cost.

VERY INTERESTING. As I posted in the AZ thread (in the Mountain/SW forum), I registered my car today. I went to the Larkspur MVD location (Scottsdale/Tempe area). I only got charged 5.6% sales tax, the new rate! Not sure why, and I wasn't going to quibble, but that's what I got charged. I was shocked because someone else had recently gone to that exact location and was charged 6.6%. I thought it was simply the clerk not realizing I had the car for a while, but she asked me specifically when my loan was initiated. I told her 4/12 (it actually started 6 days before I got hte car).

I also reg'd the car for 5 years since no emissions check will be needed, the VLT was $117 (I knew it would be cheap, but it was surreal getting that. My RS6 was over $1000 per year for a while. Also amazing getting an "18" sticker. I was issued a blue plate without inspection. Of course the Title said Electric, so, they didnt need to inspect it. They said I'd have to order a vanity plate online, which I will do I think. Though the plate# I got issued was actually kinda cool.

So, the BIG NEWS is I only had to pay 5.6% even though my car was delivered on 4/18.

- - - Updated - - -

Cross your fingers... our MVPA currently states 5/24 but everything else is 6/1 or later.

Glad to know they used the estimated delivery date. Mine was delivered this week (tues) and I had an estimated delivery of 6/2. But my MVPA was dated May 23 and payment was received May 30...

sounds like Jomo got lucky!

 

[fluxemag]

Well I'm happy you got the lower rate Jomo25. I wonder if there's any recourse I can take to try and argue. My guess is no. Also I only did 1 year for $40 or so, she never told me about a 5 year option...

 

[jomo25]

Well I'm happy you got the lower rate Jomo25. I wonder if there's any recourse I can take to try and argue. My guess is no. Also I only did 1 year for $40 or so, she never told me about a 5 year option...

There is a little more to my story too. When the clerk offered the 5 year registration option, she said it would only be about $37. I knew it would be cheap but not that cheap. BT the computer was only letting her charge me the $117. So she had to go back and talk to someone, presumably a supervisor. After about 10 min she came back and said, she had to charge me the $117. But she wanted to take my info down in case they figure out why the computer wouldn't let her charge the $37 as she calculated it. So I gave that to her so she could possibly credit me the difference. Now, based on what everyone else seems to be getting charged, $117 sounds right for 5 years.

My point is either she didn't know what she was doing, or even after a lengthy discussion with a supervisor, they still charged me only 5.6%. Makes me wonder if that is. What you should have been charged. You might want to contact someone at the MVD or ADOT to inquire. They might be able to credit you if they overcharged you. Nothing to lose for you I guess, other than some time. Just don't mention my getting charged 5.6%

 

[fluxemag]

Thanks, I actually did contact the MVD via email yesterday asking if they had charged me the incorrect rate for sales tax. It's worth a shot. I'd just like to know what their actually policy is seeing as people are being charged different rates at the same location. It would also be nice if I could get them to let me do the 5 year tags. I didn't bring that part up yet because I thought we'd take it one step at a time.

There is a little more to my story too. When the clerk offered the 5 year registration option, she said it would only be about $37. I knew it would be cheap but not that cheap. BT the computer was only letting her charge me the $117. So she had to go back and talk to someone, presumably a supervisor. After about 10 min she came back and said, she had to charge me the $117. But she wanted to take my info down in case they figure out why the computer wouldn't let her charge the $37 as she calculated it. So I gave that to her so she could possibly credit me the difference. Now, based on what everyone else seems to be getting charged, $117 sounds right for 5 years.

My point is either she didn't know what she was doing, or even after a lengthy discussion with a supervisor, they still charged me only 5.6%. Makes me wonder if that is. What you should have been charged. You might want to contact someone at the MVD or ADOT to inquire. They might be able to credit you if they overcharged you. Nothing to lose for you I guess, other than some time. Just don't mention my getting charged 5.6%

 

[irishstoutaz]

Registered ours yesterday at the Paradise Ln/Scottsdale location and had to do the inspection which meant sitting in line twice (big line to get the numbered ticket as we showed up at 8am). So may just depend on the person you get as to whether or not you will need the inspection. 5 year registration for ours was $159 but you also need to make sure you mention it since they manually calculate everything and came back with the tax/registration amount based on one year initally. Otherwise, it was very easy.

 

[fluxemag]

After writing and calling, they said it's the date you pay for the car that they care about. Sounds like sometimes you just get lucky with the agent at the MVD.

 

[jomo25]

After writing and calling, they said it's the date you pay for the car that they care about. Sounds like sometimes you just get lucky with the agent at the MVD.

Meh. Sorry to hear it. I feel lucky, but won't be surprised if I see a bill later for the diff.

 

[ZBB]

Glad to know they used the estimated delivery date. Mine was delivered this week (tues) and I had an estimated delivery of 6/2. But my MVPA was dated May 23 and payment was received May 30...

So I finally got a chance to get the car registered this afternoon... They used the 6/2 estimated delivery date, and therefore the new sales tax rate.

On a side note, she said that they were doing a lot of Tesla registrations -- and that the Scottsdale office ran out of Alt Fuel plates last week because of the volume. They were back in stock today.