How is Tesla calculating sales tax and RTA tax?

[PNWLeccy]

Does anyone know what numbers/subtotals are being used for Sales Tax and RTA calculations?

I'm sensitive to this as my 2018 Model 3 had it's MSRP incorrectly reported to DoL resulting in a MUCH higher RTA fee that I've spent the last 2 years unsuccessfully trying to correct. To clarify, I'm not trying to get out of paying RTA tax, just want to ensure it's correct.

Is "Subtotal of Taxable Items" the amount they are using for calcs? My understanding was that MSRP was price of car without included options, so according to the breakdown below, I thought it would be $52,490.

View attachment 708974
If that's the correct MSRP amount, my calculations are not lining up with what is shown in the MVPA

Sales Tax:
$52,490 (MSRP) x 1.104 (10.4% Bellevue Car Sales Tax) = Expected: $5,458.96 vs MVPA: $5780.35
RTA Fee:
$52,490 (MSRP) x .011 (1.1% RTA tax) = Expected: $577.39 vs MVPA: $594

View attachment 708973

 

[JohnCostanzo]

Does anyone know what numbers/subtotals are being used for Sales Tax and RTA calculations?

I'm sensitive to this as my 2018 Model 3 had it's MSRP incorrectly reported to DoL resulting in a MUCH higher RTA fee that I've spent the last 2 years unsuccessfully trying to correct. To clarify, I'm not trying to get out of paying RTA tax, just want to ensure it's correct.

Is "Subtotal of Taxable Items" the amount they are using for calcs? My understanding was that MSRP was price of car without included options, so according to the breakdown below, I thought it would be $52,490.

View attachment 708974
If that's the correct MSRP amount, my calculations are not lining up with what is shown in the MVPA

Sales Tax:
$52,490 (MSRP) x 1.104 (10.4% Bellevue Car Sales Tax) = Expected: $5,458.96 vs MVPA: $5780.35
RTA Fee:
$52,490 (MSRP) x .011 (1.1% RTA tax) = Expected: $577.39 vs MVPA: $594

View attachment 708973

My account showed that Tesla was collecting for RTA... Turns out I live outside the RTA area (Covington WA). Just sent my Tesla account guy an email asking to remove this charge. Saves me $671

 

[PNWLeccy]

My account showed that Tesla was collecting for RTA... Turns out I live outside the RTA area (Covington WA). Just sent my Tesla account guy an email asking to remove this charge. Saves me $671

Might have to follow up with my SA to see if they have any idea but I feel like they'll give me some sort of stock answer that isn't helpful at all.

 

[camminich]

Where are you taking delivery of the car? The sales tax looks like it is calculated based on Lynnwood's tax rate. The tax should be calculated based on the delivery location, and not the registration address. If it is the Bellevue center, you might want to confirm with your SA, they could just have the wrong location entered,

The RTA tax always seems like an over estimate in case they get something wrong. Best people to contact would be the DOL directly and ask them what it should be. They know better than the dealer. I had thought it went up again in July 2021.

 

[Long Ranger]

Sales Tax:
$52,490 (MSRP) x 1.104 (10.4% Bellevue Car Sales Tax) = Expected: $5,458.96 vs MVPA: $5780.35

Sales tax isn't based upon MSRP, that's only the RTA tax that uses MSRP. Sales tax is based upon full purchase price of $54,790. As @camminich says, they got the wrong location (but they used Seattle, not Lynnwood or Bellevue). Seattle vehicle tax rate is 10.55% vs Bellevue at 10.4% and Lynwood at 10.8%. ($54,790)(.1055)=$5780.35.

For RTA tax, looks like Tesla used an MSRP of $54,000 for you. Estimate or error? I don't know, but I agree that looks wrong. Seems to me like MSRP should be an exact number, with the only debate as to whether certain options are included or excluded in that. On my MVPA, back in 2018, Tesla got that RTA tax number exactly right. Don't know if this helps any, but DOL has an RTA tax estimator on a link on this RTA page: https://www.dol.wa.gov/vehicleregistration/rta.html

 

[PNWLeccy]

Sales tax isn't based upon MSRP, that's only the RTA tax that uses MSRP. Sales tax is based upon full purchase price of $54,790. As @camminich says, they got the wrong location (but they used Seattle, not Lynnwood or Bellevue). Seattle vehicle tax rate is 10.55% vs Bellevue at 10.4% and Lynwood at 10.8%. ($54,790)(.1055)=$5780.35.

Re: Sales Tax- you helped me figure this out. I was set to take delivery in Bellevue but according to my SA, you can no longer pickup at Bellevue or Seattle and they are only doing home delivery. Therefore, I'm getting the 10.55% tax rate due to Seattle address.

For RTA tax, looks like Tesla used an MSRP of $54,000 for you. Estimate or error? I don't know, but I agree that looks wrong. Seems to me like MSRP should be an exact number, with the only debate as to whether certain options are included or excluded in that. On my MVPA, back in 2018, Tesla got that RTA tax number exactly right. Don't know if this helps any, but DOL has an RTA tax estimator on a link on this RTA page: https://www.dol.wa.gov/vehicleregistration/rta.html

It does seem like Tesla is using the CURRENT $53,990 MSRP to calculate the RTA Tax fee. My MSRP is $52,490.

However, according to the DoL RTA tax estimator, the 2021 MYLR is in their database as $49,990 which is what the price was in January, I believe. I thought they used this price rather than current.

MY Trim options for reference:

Reference: https://fortress.wa.gov/dol/extdriveses/NoLogon/_/#28 > Select 'Estimate regional transit tax'

 

[PNWLeccy]

In 2019, I bought a used 2018 Model 3 from Tesla and instead of sending the MSRP (2018 Model 3 Long Range) to DoL they sent the TOTAL original price to DoL (MSRP, MSM Paint, 19" Wheels, EAP, and Dest. and doc fee). Besides the fact the DoL, states MSRP should not include any options, they also included Doc/Dest fees and EAP, which my car doesnt even have!!

This resulted in a $601 RTA tax fee due which I could not figure out until DoL told me they were using $57,500 as my MSRP. I found the original Monroney Tesla provided which showed where they got the $57,500 number from.

The worst part is that the DoL has confirmed to me that the MSRP they use for a 2018 M3 LR RWD is $49,000, as shown on their RTA estimator, but they are using the $57,500 number Tesla sent them. They both refuse to correct it so I've been paying the elevated RTA fee for 3 years...

 

[JimmySure]

Ran into the same issue since we were registering at our cabin in Plain, WA (i.e. lower tax and no RTA). The sales tax at purchase is based on where the car is being picked up vs. registration address. We ended up changing pickup from Lynnwood to Renton which saved a few bucks. Total BS that the government does this, but it was either Renton or Spokane. The RTA is based on where registered, so we did avoid RTA using the Plain address.

 

[JohnCostanzo]

Ran into the same issue since we were registering at our cabin in Plain, WA (i.e. lower tax and no RTA). The sales tax at purchase is based on where the car is being picked up vs. registration address. We ended up changing pickup from Lynnwood to Renton which saved a few bucks. Total BS that the government does this, but it was either Renton or Spokane. The RTA is based on where registered, so we did avoid RTA using the Plain address.

My issue is/was that Tesla calculated the RTA tax on my order when it shouldn't have. I emailed and spoke with our sales advisor. He sent it off to another group to fix. Haven't heard back since I spoke to him this morning, but I am sure it will be taken care of. Also, you for certain want to avoid paying the tax and trying to get any refund. I called the DOL this morning about a refund for taxes I paid two years ago. I got the finger pointing game.... you need to call sound transit... we only collect the tax, don't refund. Called Sound Transit... we only update the maps, we don't deal with the collection or refunds. The whole RTA tax is BS in my opinion, I am sick of how much taxes we pay in our state. Unfortunately, people elect and re-elect people who make these decisions and don't have any control over it.

 

[PNWLeccy]

Ran into the same issue since we were registering at our cabin in Plain, WA (i.e. lower tax and no RTA). The sales tax at purchase is based on where the car is being picked up vs. registration address. We ended up changing pickup from Lynnwood to Renton which saved a few bucks. Total BS that the government does this, but it was either Renton or Spokane. The RTA is based on where registered, so we did avoid RTA using the Plain address.

I had planned to pickup in Bellevue since it's convenient and would be better for sales tax purposes but it seems like that is no longer an option, according to my SA.

Local pickup is still available at Lynwood or Renton, and as you stated. Renton would be cheaper than Seattle (10.4% vs 10.55%) but it's probably not worth the ~$82 saved vs. getting home delivery. The difference between Lynwood and Renton is a bit higher at ~$220.

My issue is/was that Tesla calculated the RTA tax on my order when it shouldn't have. I emailed and spoke with our sales advisor. He sent it off to another group to fix. Haven't heard back since I spoke to him this morning, but I am sure it will be taken care of. Also, you for certain want to avoid paying the tax and trying to get any refund. I called the DOL this morning about a refund for taxes I paid two years ago. I got the finger pointing game.... you need to call sound transit... we only collect the tax, don't refund. Called Sound Transit... we only update the maps, we don't deal with the collection or refunds. The whole RTA tax is BS in my opinion, I am sick of how much taxes we pay in our state. Unfortunately, people elect and re-elect people who make these decisions and don't have any control over it.

Couldn't agree more, re: the runaround with DoL. They have been an absolute nightmare to deal with trying to get this fixed. They've admitted that my MSRP is incorrect and that they've "appealed it". Every time I call in for an update on my "appeal" they have told me (I'm not kidding) "we do not provide updates", when I ask them when I can expect to hear a response on their decision since it's been over a year " we do not provide a timeline for appeals", and will I receive any response on my decision "You will receive something if they make a decision". WTF!

I've had about as much luck with Tesla when DoL told me they could just send an updated MSRP for my VIN. Called, emailed multiple times and they seem genuinely confused at what I'm talking about. When I ask for the person who files the registration documents so I can explain, because I assume they would understand, they tell me there is no email or phone number to this 3rd party they can provide but they can email them my request. I've had this done 3x w/ zero response. I've literally given up on fixing this and selling the car for the MY, which is why I want to make sure everyone involved doesn't F this up again

 

[JohnCostanzo]

I had planned to pickup in Bellevue since it's convenient and would be better for sales tax purposes but it seems like that is no longer an option, according to my SA.

Local pickup is still available at Lynwood or Renton, and as you stated. Renton would be cheaper than Seattle (10.4% vs 10.55%) but it's probably not worth the ~$82 saved vs. getting home delivery. The difference between Lynwood and Renton is a bit higher at ~$220.

Couldn't agree more, re: the runaround with DoL. They have been an absolute nightmare to deal with trying to get this fixed. They've admitted that my MSRP is incorrect and that they've "appealed it". Every time I call in for an update on my "appeal" they have told me (I'm not kidding) "we do not provide updates", when I ask them when I can expect to hear a response on their decision since it's been over a year " we do not provide a timeline for appeals", and will I receive any response on my decision "You will receive something if they make a decision". WTF!

I've had about as much luck with Tesla when DoL told me they could just send an updated MSRP for my VIN. Called, emailed multiple times and they seem genuinely confused at what I'm talking about. When I ask for the person who files the registration documents so I can explain, because I assume they would understand, they tell me there is no email or phone number to this 3rd party they can provide but they can email them my request. I've had this done 3x w/ zero response. I've literally given up on fixing this and selling the car for the MY, which is why I want to make sure everyone involved doesn't F this up again

My sales rep is out of state. I live in Wa, he lives in NV. I think he understands the issue, just need to get the info I sent him to the right group to fix. I am sure as hell won't send the payment until this is fixed. Since I don't have my VIN yet, I am hoping this will get corrected soon (like in the next day or so). Keep you posted.

 

[gvme]

My sales rep is out of state. I live in Wa, he lives in NV. I think he understands the issue, just need to get the info I sent him to the right group to fix. I am sure as hell won't send the payment until this is fixed. Since I don't have my VIN yet, I am hoping this will get corrected soon (like in the next day or so). Keep you posted.

Any updates on this?

Also I live in Vancouver WA if I pick up in Seattle area will I pay Seattle taxes and whatever the RTA tax is?

 

[Stewart]

I live in Mill Creek, WA and picked up the car in Portland and was charged the RTA and taxes for my home address. Although what the Tesla receipt said and what the DOL licensing receipt indicated was different. So I wouldn’t expect that you would be charged RTA for Vancouver, you’ll see the charges on your Tesla account.

 

[gvme]

I live in Mill Creek, WA and picked up the car in Portland and was charged the RTA and taxes for my home address. Although what the Tesla receipt said and what the DOL licensing receipt indicated was different. So I wouldn’t expect that you would be charged RTA for Vancouver, you’ll see the charges on your Tesla account.

Thank you

 

[PNWLeccy]

Have you guys been charged the RTA fee based on the current MSRP even if you've ordered at a lower price?

I noticed that the price went up when I received a VIN because they had done the RTA calc (1.1%) based on the CURRENT MSRP despite it being $6.5k less when I ordered and even less when I look up the model in the RTA estimator. The RTA is supposed to be calculated based on a FIXED MSRP that they have in their database rather than the price you paid, in order to standardize the fee based on model and year.

 

[Stewart]

Have you guys been charged the RTA fee based on the current MSRP even if you've ordered at a lower price?

I noticed that the price went up when I received a VIN because they had done the RTA calc (1.1%) based on the CURRENT MSRP despite it being $6.5k less when I ordered and even less when I look up the model in the RTA estimator. The RTA is supposed to be calculated based on a FIXED MSRP that they have in their database rather than the price you paid, in order to standardize the fee based on model and year.

Yes, I was charged the current MSRP not the price I paid.

 

[PNWLeccy]

Yes, I was charged the current MSRP not the price I paid.

But is that what they should be doing?

I don’t see 2022 MYs in the RTA estimator database for reference but my understanding is that they have to determine the MSRP for the model year and that is what DoL will use for all vehicles that year despite price changes, etc.