Is the FSD package taxed if added after delivery? (California)

[thesmeazy]

Hello,

I purchased a new 2023 RWD Model 3 with the $15k full-self driving upgrade on 6/25/23 in California.

One of my friends told me that if I added the FSD package after delivery then I would not have been taxed on that. Is thattrue?

If that is true, then would I be able to have Tesla either remove the FSD then add it on later? Or would I be able to just return the car and buy a new one w/o the FSD upgrade and add it on later to save on the tax? I am still under the 100 miles / 7-days period.

Much appreciate the communities suggestions as my 100miles/7days will be coming up very soon and I need to make a decision.

Thank You!

 

[fholbert]

Hello,

I purchased a new 2023 RWD Model 3 with the $15k full-self driving upgrade on 6/25/23 in California.

One of my friends told me that if I added the FSD package after delivery then I would not have been taxed on that. Is thattrue?

If that is true, then would I be able to have Tesla either remove the FSD then add it on later? Or would I be able to just return the car and buy a new one w/o the FSD upgrade and add it on later to save on the tax? I am still under the 100 miles / 7-days period.

Much appreciate the communities suggestions as my 100miles/7days will be coming up very soon and I need to make a decision.

Thank You!

You can subscribe to it month to month for $199 plus tax after you get your car. Just a software upgrade.

 

[thesmeazy]

Hello,

I purchased a new 2023 RWD Model 3 with the $15k full-self driving upgrade on 6/25/23 in California.

One of my friends told me that if I added the FSD package after delivery then I would not have been taxed on that. Is thattrue?

If that is true, then would I be able to have Tesla either remove the FSD then add it on later? Or would I be able to just return the car and buy a new one w/o the FSD upgrade and add it on later to save on the tax? I am still under the 100 miles / 7-days period.

Much appreciate the communities suggestions as my 100miles/7days will be coming up very soon and I need to make a decision.

Thank You!

 

[ygtgngr]

Of course you pay tax on it. It’s $15K + tax. When you are about to order it asks for your billing address and calculates the tax.

 

[jjrandorin]

One of my friends told me that if I added the FSD package after delivery then I would not have been taxed on that. Is thattrue?

No, thats not true. I purchased FSD as an add on in March of 2019 and was charged tax in CA and so is everyone else.

If that is true, then would I be able to have Tesla either remove the FSD then add it on later? Or would I be able to just return the car and buy a new one w/o the FSD upgrade and add it on later to save on the tax? I am still under the 100 miles / 7-days period.

No, you would not be able to do either of those. Tesla isnt going to remove and refund FSD on your car, and they absolutely, positively, unequivocally will NOT take the car back from you, as there is No "100 miles / 7 day return period" and hasnt been for years.

 

[Supcom]

Whether you are taxed depends on your state's sales tax rules for software purchases.

 

[ucmndd]

Yes you pay tax.

There is no seven day return period so absolve yourself of that notion right quick.

One nice thing about buying it after the fact is your registration will be cheaper every year because the transaction price was lower (and thus the DMV’s value calculation of your car is lower).

 

[thesmeazy]

Hmm, I got a confirmation from Tesla service below sbout the 100 miles/7-days. I was also told this by several of the sales staff and the guy who did the delivery process at the Tesla dealership as well.

 

[thesmeazy]

My cousin bought the same RWD 2023 Model 3 and I asked him to try to add the FSD and see if there is tax, and sure enough there is (at least for California it adds tax)

 

[jjrandorin]

Hmm, I got a confirmation from Tesla service below sbout the 100 miles/7-days. I was also told this by several of the sales staff and the guy who did the delivery process at the Tesla dealership as well.

View attachment 951961

You got confirmation of being able to submit a service request in that time. You did not get any sort of confirmation on returning the car during that time, but you dont have to believe us, you can ask them and see what they say. Just ask them "hey I can return the car within 7 days or 100 miles and get my money back, right?"

You will get confirmation that "no, thats not possible".

 

[fholbert]

Whether you are taxed depends on your state's sales tax rules for software purchases.

Best answer!

 

[Twiglett]

So hang on, you just spent $50k or more on something without understanding the tax implications or purchase agreements?
And all this happened without any rebates/credits happening

 

[ucmndd]

Best answer!

I'm not so sure. To my knowledge Tesla charges tax everywhere that collects sales tax, just like they would if you purchased it as an option on the car at delivery.

 

[ucmndd]

Hmm, I got a confirmation from Tesla service below sbout the 100 miles/7-days.

Having 7 days and 100 miles to report any delivery issues is not the same thing as a 7 day return policy. They will not take the car back.

 

[fholbert]

I'm not so sure. To my knowledge Tesla charges tax everywhere that collects sales tax, just like they would if you purchased it as an option on the car at delivery.

So, when I’m in sales tax free Oregon I’ll buy expensive electronics and haul it back to California. Wonder if you could do the same on FSD?

 

[thesmeazy]

You got confirmation of being able to submit a service request in that time. You did not get any sort of confirmation on returning the car during that time, but you dont have to believe us, you can ask them and see what they say. Just ask them "hey I can return the car within 7 days or 100 miles and get my money back, right?"

You will get confirmation that "no, thats not possible".

Yeah, I was talking about the 100miles/7-day thing, not about returning the car. I definitely trust you guys on that and wanted to see if that was even possible.

 

[thesmeazy]

So hang on, you just spent $50k or more on something without understanding the tax implications or purchase agreements?
And all this happened without any rebates/credits happening

No, I understood all of that and I qualify for the $7,500 federal credit and up to $7,500 from California Clean Vehicle Rebate. My friend had mentioned the tax thing about the FSD and it didn't make sense to me so I wanted some clarification from the TMC community.

 

[fholbert]

No, I understood all of that and I qualify for the $7,500 federal credit and up to $7,500 from California Clean Vehicle Rebate. My friend had mentioned the tax thing about the FSD and it didn't make sense to me so I wanted some clarification from the TMC community.

I'm not aware of a $7,500 rebate from California. CA offers $2,000 but your combined gross income must be under $200k. Not sure how you expect a CA tax rebate if you live in Henderson NV.

For the federal $7,500 tax credit your combined adjusted income must be under $300k.

Just to be clear, these numbers are for those filing tax returns jointly.

 

[Jack Oak]

Hello,

I purchased a new 2023 RWD Model 3 with the $15k full-self driving upgrade on 6/25/23 in California.

One of my friends told me that if I added the FSD package after delivery then I would not have been taxed on that. Is thattrue?

If that is true, then would I be able to have Tesla either remove the FSD then add it on later? Or would I be able to just return the car and buy a new one w/o the FSD upgrade and add it on later to save on the tax? I am still under the 100 miles / 7-days period.

Much appreciate the communities suggestions as my 100miles/7days will be coming up very soon and I need to make a decision.

Thank You!

Of course it is. They tax everything. Did you forget where you live? They would tax the amount of air your breathe id they could. Wait….they essentially do…

 

[EVRider-FL]

Buying the FSD package isn’t worthwhile unless you plan to keep the car for 7+ years. Better off buying EAP for $6k and subscribing to FSD for $100/month if you really want it.