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Don't go to Cali just to get your car-state tax still not waived
- Thread starter tsla007
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- Tesla Inc.
Garlan Garner
Banned
Yep. I might do that myself. I'm thinking about it. The only problem is that it's going to happen in the Winter.
hockeythug
Active Member
I'm not really surprised. It's currently pretty niche in the scheme of things, quantifying the amount of tourism dollars would be nearly impossible, and getting tax exclusions is one of the harder tasks in government.
The bigger question is whether Tesla will be able to continue to offer factory tours to buyers once they're producing at capacity. My guess is that they'll either have to change the format of the tour, keeping it completely off of the floor (like the Jelly Belly factory, for those who have been), or they'll just eliminate the tours altogether.
The bigger question is whether Tesla will be able to continue to offer factory tours to buyers once they're producing at capacity. My guess is that they'll either have to change the format of the tour, keeping it completely off of the floor (like the Jelly Belly factory, for those who have been), or they'll just eliminate the tours altogether.
T34ME
Active Member
Yes, if you purchase the car in OR, OR will then charge the sales tax in your resident State. The OP apparently wants to purchase the car in his resident State (NH) but take possession in OR to avoid the CA sales tax. That's where the rub is. If he wants to avoid the CA tax, he should purchase the car in OR from an OR Tesla showroom (Portland, I think).
Federal law says destination charge is the same no matter where you get the car. Another bit of protectionist legislation courtesy of the auto dealer cartel that limits meaningful competition among dealers.
melindav
☰ 2018
buying from Portland is what he's saying, unless I missed something I don't see the issue (besides potentially jamming up my local portland SC with an east coaster
)
The OP is in CT (which has lower sales tax than CA, so picking up in CA costs more in tax). I mentioned picking up/taking delivery/purchasing/whatever in OR as a NH resident in post #25.
My expectation of the process is configure on-line, specifying Portland for pickup. Finalize paperwork on-line or in the Portland store. Refuse to pay any sales tax in the process. Fly to PDX, some form of ground transport to the store or service center, sign whatever needs to be signed, and drive off.
I don't see much difference between "purchase in NH, delivery in OR" vs "purchase in OR, delivery in OR" when "purchase" is an entirely online transaction, devoid of a location beyond cyberspace.
Damn east coast tourists!buying from Portland is what he's saying, unless I missed something I don't see the issue (besides potentially jamming up my local portland SC with an east coaster
T34ME
Active Member
Okay, here is the latest on this issue, I just called my local store, service center. Currently, the model S and X have a $1200 destination and factory prep fee. That fee cannot be waived, even if picking up directly in Fremont. However, he said there has been some informal chat about waving this fee or reducing the fee on the model 3 with a factory delivery. He said that everything is still up in the air with regards to the T3. He said the current best guess is that initial deliveries of the T3 will not begin until Spring of 2018.
Garlan Garner
Banned
That's good to know. I will be very interested in finding out if Tesla will make any adjustments.
The more I'm thinking about it....picking it up in Freemont and driving to Chicago sounds extremely attractive.
ssrajputev
Member
You still have to pay the destination and doc fee ($1,200) irrespective of you picking it up directly at the Fremont factory or in another state or city at your local service center.
I live in Fremont and am picking up my new Model S this coming Friday directly from the factory. I'm still paying for the destination fee. I think people are confused her or not used to seeing the fee being $1,200 for a new car. For any regular car from other manufacturers that you buy from its dealer, you also are paying the destination fee. It's usually the MSRP + destination fee. However, the destination fee is usually only $500-$700 for these cars.
The destination fee is the same for everyone and isn't negotiable.
cpa
Active Member
OK,
Here is the table that lists the components of the statewide sales tax rate in California:
Detailed Description of the Sales and Use Tax Rate - Board of Equalization
As you can see the statewide rate is 7 1/2%.
There are local and district taxes that can increase the rate up to 10%, depending upon your specific California residence. A quick search of the BOE website came up blank for me, but I believe that since an out-of-state buyer has no California address, Tesla would only collect 71/2% of the sales price exclusive of the delivery charge for those folks.
Here is the table that lists the components of the statewide sales tax rate in California:
Detailed Description of the Sales and Use Tax Rate - Board of Equalization
As you can see the statewide rate is 7 1/2%.
There are local and district taxes that can increase the rate up to 10%, depending upon your specific California residence. A quick search of the BOE website came up blank for me, but I believe that since an out-of-state buyer has no California address, Tesla would only collect 71/2% of the sales price exclusive of the delivery charge for those folks.
Akikiki
A'-Lo-HA ! y'all
Yes, you do. And that's also why the charge is the same regardless of what state you are in.
That was my original plan, fly out, tour factory, pickup coolest new car ever, and road trip home seeing the sights with my wife. Long trip, absolutely! And as the CC commercails would say, "priceless!"
iwannam3
Active Member
I got my Mercedes with European delivery at the factory in Germany and I dropped it off in Amsterdam and it was shipped to my nearest dealer (Oregon) without any destination charge. That was in addition to 7% off MSRP and a factory tour and lunch. They also provided 1 night in a very nice hotel and taxi vouchers from the airport to the hotel and then to the factory. BMW, Porsche, Volvo and others have similar programs. If Tesla insists on the "destination" fee they should at least comp hotel and taxi when picking it up.
TaoJones
Beyond Driven
Yanno, when you think about it, getting charged the $1200 fee when you go to collect the car is a bit of a ripoff. Split the difference at least as we know very well that no transport company is being paid.
The Board of Equalfleeceation has long been a den of thieves. Ask any out of stater who's had the temerity to purchase a yacht or aircraft in CA about that. There are law firms whose entire reasons for existence are to protect against the shenanigans of the BoE.
Hopefully, the sales tax exemption will eventually happen. I doubt the doc fee will go away - I wish they'd just call it what it is - a contribution toward administrative overhead.
Meanwhile I do love that Tesla continues to spank the rest of the segment, including Mercedes.
Tradeoffs, tradeoffs.
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