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How is new car sales tax calculated with Trade In in California?

Discussion in 'Model X: Ordering, Production, Delivery' started by Bpnetguy, Jun 3, 2018.

  1. Bpnetguy

    Bpnetguy Member

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    Apr 24, 2018
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    San Jose
    If I buy the Tesla for 200k and trading value is 100k

    Do I pay 200k x 1.0975 or 100k x 1.0975?
     
  2. gene

    gene Supporting Member

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    Location:
    Santa Barbara, CA
    You pay on the 200k because that is the sale and it is sales tax. How you choose to pay for it is between you and the seller.
     
  3. Bpnetguy

    Bpnetguy Member

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    San Jose
  4. Big Dog

    Big Dog Member

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    Irvine, CA
  5. azred

    azred Active Member

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    A good example of why it is tricky to compare tax burdens for various states. CA Tesla buyers get that nice fat $2500 but buyers from most states get a nice tax break on a trade difference.
     
  6. azred

    azred Active Member

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    Huh? We in AZ -- like buyers in most states -- only pay sales tax on the trade difference so does that mean the tax shouldn't be called sales tax?
     

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