Factory Delivery

[bmek]

Most of the vehicles delivered to other states are not accepted and driven by the owners in CA. This opens up all kinds of sales tax issues. After I received the appropriate paperwork from Tesla I registered the vehicle and applied for a title with my state Department of Motor Vehicles. So this isn't the title the IRS is referring to?

Sorry for the confusion. The scenario that I was describing was a transaction just before year end.

If someone wanted to accelerate the purchase of a Model S they could fly to California and 'accept' the car, then have it delivered to their home (or wherever) in another state. This would be to allow them to claim the $7,500 tax credit in 2012 (as it may not be available in 2013).

 

[strider]

Sorry for the confusion. The scenario that I was describing was a transaction just before year end.

If someone wanted to accelerate the purchase of a Model S they could fly to California and 'accept' the car, then have it delivered to their home (or wherever) in another state. This would be to allow them to claim the $7,500 tax credit in 2012 (as it may not be available in 2013).

Right, but don's point is that you would have to pay sales tax in CA. That would effectively wipe out your $7,500 credit.

 

[Norbert]

Right, but don's point is that you would have to pay sales tax in CA. That would effectively wipe out your $7,500 credit.

Which raises the question: could you then get the CA rebate of $2,500 ?

 

[strider]

Which raises the question: could you then get the CA rebate of $2,500 ?

I think you need a Cali driver's license/be a resident to do that and trust me, you do not want to enter the riveting world of the California Franchise Tax Board.

 

[Lloyd]

Applicant Requirements
Individuals, businesses, nonprofits or government entities based in California or that have a California based affiliate
Purchasers or Lessees of New Zero-Emission Vehicles ( ZEV) or Plug-In Hybrid Electric Vehicles ( PHEV)
Applicants must own or lease the vehicle for a minimum of 36 consecutive months*
Vehicles must be registered with the California DMV for a minimum of 36 consecutive months

*Note: Resale of a vehicle or return to a dealer is allowed within this 36 month period if necessitated by unforeseen or unavoidable circumstances. To employ this provision, ARB must approve the circumstances and sale or return in advance. If the vehicle is resold, the vehicle purchaser or lessee must refund a prorated portion of their rebate. However, resale of a CVRP vehicle for financial gain within 36 months is not allowed. In these cases, ARB or its designee reserves the right to recoup CVRP funds from the original vehicle purchaser identified on the rebate form and may pursue other remedies available under the law.

 

[Norbert]

Vehicles must be registered with the California DMV for a minimum of 36 consecutive months

That of course makes sense since the intent is to clean the air specifically in California. I'd guess that such a restriction would not be necessary if it were a federal rebate instead of a state rebate.

 

[vfx]

EDIT:

This is a random video i found!

 

[huntjo]

Very neat picture book style, vfx!

 

[Lyon]

Very neat picture book style, vfx!

Kind of made me feel like I was playing Myst for a second.

 

[brianman]

Nice video, Eric.

Quick question: What was the notification at 3:22?

 

[cinergi]

Since the car was charging, my guess is the customer stepped on the brake pedal which throws a warning (instead of turning the car on).

 

[Al Sherman]

Thought I would post the latest direct from Tesla. They have been working hard on getting some good solid answers to the whole tax and factory delivery issue and here is the response:

We have an update for all of our out-of-state customers who are interested in taking delivery at the Tesla Factory in Fremont, California. It is now clear per the California Board of Equalization Publication 34 & Regulation 1620 that all customers taking delivery in California must pay California sales tax. Non California residents who opt for delivery at the Fremont Factory must pay the local county sales tax (currently 8.75% in Alameda County). These taxes will be collected at the point of sale in California. The point of sale, by definition, will be at the time the customer (purchaser) takes possession of the vehicle. Customers travelling from states that have higher sales tax than the Alameda County tax may be required to pay the difference to their local government. We suggest customers contact county and local governments to verify their tax rates.

While these tax regulations will impact customers who plan to drive their new Model S back to their home state, we encourage customers to visit us and participate in the Tesla Factory Experience in Fremont. This program is designed for those who want to see the Model S production facility, tour the production floor, learn about the beginnings of Tesla.
Regardless of where you choose to take delivery of your Model S, we plan to provide a Tesla Personal Delivery. At your delivery location, we will provide an in depth vehicle overview and help you customize your Model S vehicle settings and personal preferences (Touchscreen, Homelink, Bluetooth devices, download music, etc). The cost of the Tesla Personal Delivery will be identical for those who opt to pick up their Model S at the Factory or have it delivered across country.

Almost a year later; is this STILL the bottom line? We've been considering flying out and doing the tour then trying to make it back to Indiana at a leisurely(retired) pace. If paying the CA tax is still the case it's a no go. Does anybody know if anything has changed? Or, if there is any new info?

 

[carrerascott]

We are taking delivery here (Virginia) soon -- and flying out to SF next month and taking the tour. Don't want to deal with driving back across the country with no SC network anyway, so this is the best of both worlds IMHO.

Almost a year later; is this STILL the bottom line? We've been considering flying out and doing the tour then trying to make it back to Indiana at a leisurely(retired) pace. If paying the CA tax is still the case it's a no go. Does anybody know if anything has changed? Or, if there is any new info?

 

[Al Sherman]

We are taking delivery here (Virginia) soon -- and flying out to SF next month and taking the tour. Don't want to deal with driving back across the country with no SC network anyway, so this is the best of both worlds IMHO.

A viable option to be sure.

Still wondering if anyone knows anything new, or is this still the bottom line? We pay CA tax? We would love to do the adventure (drive) home to Indiana.

 

[gg_got_a_tesla]

If paying the CA tax is still the case it's a no go. Does anybody know if anything has changed? Or, if there is any new info?

If anything, CA tax has gone up by 0.25%

 

[jomo25]

Have to say I'm a little disappointed seeing the note above from Tesla. Not the taxes part (though it would be if I was picking up in Fremont). I've been trying to get a tour since I've had a couple trips including this coming week to the Bay Area. But I'm not getting any responses on my request on if I can tour.

 

[ChadS]

Yeah, you still pay CA tax if you take delivery in CA. That's unfortunate.

This is definitely not optimal, but as WhiteKnight suggested at the beginning of the thread you could fly to Reno and take delivery there. Drive to Folsom (~120) miles, fill up at the supercharger, drive to the factory (another ~120 miles), take your tour (and ask questions about anything you discovered on your ride there), and then head back home.

I don't THINK you have to pay Nevada taxes, but that's probably worth looking up before you take the trip...

 

[Al Sherman]

Yeah, you still pay CA tax if you take delivery in CA. That's unfortunate.

This is definitely not optimal, but as WhiteKnight suggested at the beginning of the thread you could fly to Reno and take delivery there. Drive to Folsom (~120) miles, fill up at the supercharger, drive to the factory (another ~120 miles), take your tour (and ask questions about anything you discovered on your ride there), and then head back home.

I don't THINK you have to pay Nevada taxes, but that's probably worth looking up before you take the trip...

Interesting. I may have to ask my DS about this possibility when he contacts me. It would be a fun adventure for sure.

Don't want to turn this thread into a rant about the situation. However, I just can't understand why CA doesn't want my money (granted a grain of sand in their overall economy). Flight into SFO for two, hotel rooms, meals etc... All taxed. I'm never gonna pay the CA sales tax so why not allow me to pay the other taxes? Just don't get it.

- - - Updated - - -

My wheels are spinning. Anybody know the deal in Nevada on the tax thing? More like other states or similar to CA? Don't know if it's possible this close to the delivery window. Also don't know if the wife could (in the real world) handle the adventure. Definitely worth investigating.