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FSD sales tax on a HW3 car in CA

Discussion in 'California' started by ab26, Jan 11, 2020.

  1. ab26

    ab26 Member

    Joined:
    Nov 15, 2015
    Messages:
    353
    Location:
    Bay Area, CA
    Hi Guys

    So I purchased a HW3 car in June 2019. I purchased FSD in Nov2019. Tesla charged me sales tax on this. Does anyone know if I should be entitled to a refund since CA exempts tax on software purchase?

    Has anyone successfully able to get a refund on FSD purchase on a hw 3 car?
     
  2. Need

    Need Active Member

    Joined:
    Nov 22, 2017
    Messages:
    2,757
    Location:
    SoCal
    Tesla charges sales tax on all of their software upgrades in CA including acceleration boost, AP, EAP, etc.... So it is not because of HW3.
     
  3. RandyS

    RandyS Fan of Elon

    Joined:
    Jul 8, 2012
    Messages:
    664
    Location:
    San Diego
    I always thought they didn't have to charge sales tax on software updates because of the delivery method. Someone tweeted this question to Elon last year and he said he was going to look into it. Since nothing has changed, I'm assuming that they felt they still have to charge sales tax...

    salestax.jpg
     
  4. jhsocal

    jhsocal Member

    Joined:
    Nov 11, 2019
    Messages:
    7
    Location:
    california
    This is very interesting as I searched online and am seeing that, in California, if you purchase "non-custom" canned, downloadable, software, that it is not subject to sales tax. If they deliver it on media(cd or dvd), though, then it is taxable. I guess this is more up to Tesla though to remove the sales tax on these types of transactions for CA residents.

    Sales and use taxes in California - Wikipedia
     
  5. ucmndd

    ucmndd Well-Known Member

    Joined:
    Mar 10, 2016
    Messages:
    5,583
    Location:
    California
    It’s taxed if you purchase it with the car, so they tax it if you buy after. Always have.
     

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