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Lets discuss TX 152.090 sales tax exemption

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I realize this is an old thread, but I've heard of at least one other person just recently getting this exemption in Fort Bend county, so it probably varies greatly depending on where in Texas you live.

I have the contact info of another Houston-area lawyer that is willing to work with people wanting to do this, if anyone is interested.

Would you care to share more specifics? I live in Ft. Bend and hope to take delivery early 2016.
 
The basic idea is that on your "Application For Texas Title" form, you go into box 21 and check the box next to "Exemption claimed under Motor Vehicle Sales and Use Tax law because" and write in something to the effect of that you're claiming a Texas section 152.090 for CERTAIN HYDROGEN-POWERED MOTOR VEHICLES because it is hydrogen power capable and has a fuel economy rating of at least 45 miles per gallon.

Depending on the mood or attention being given by your county clerk, it might be accepted as is. In some county offices, they already have been informed not to accept this. In some instances, the county office may be unsure about it and call to the State Comptroller's office, which will probably tell them to reject it. If your local county office accepts it, there is still the possibility that it'll be eventually rejected when it is processed a few days/weeks later by the State Comptroller's office and you might eventually be asked to pay the taxes due (I've heard there is no penalty fee, if this occurs). If luck is on your side, they won't catch it and you'll be home free.

If you have already registered your vehicle and paid the sales tax for it, you can theoretically file a Form 14-202 "Texas Claim for Refund of Motor Vehicle Tax" and cite the same Texas section 152.090, and maybe include a supporting letter from a lawyer. You'll receive a formal response from the State Comptroller's office about whether they accept or reject it, but unfortunately it seems probable that rejection under this higher-scrutiny route is more likely at this time.
 
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I'm with you.

(Unless you're charging it from a fuel cell...)

Yes, that's the argument. You aren't saying that the Tesla is "hydrogen powered", but that it is "hydrogen power capable" and that it could be recharged using electricity derived from a hydrogen cell.

As an example of this possibility, see the "Hydrogen House Project" in New Jersey, which uses solar panels to generate electricity to split water using hydrolysis, then store the resulting hydrogen in tanks until it is actually needed. "The hydrogen can then be burned for cooking and heating similar to natural gas, and can be converted into electricity by way of a hydrogen fuel cell." Hydrogen House Project: The Hydrogen House - Hydrogen House Project

You technically don't have to demonstrate that you possess a hydrogen fuel cell system at all, since the law only talks about vehicle capability.
 
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Yes, that's the argument. You aren't saying that the Tesla is "hydrogen powered", but that it is "hydrogen power capable" and that it could be recharged using electricity derived from a hydrogen cell.

As an example of this possibility, see the "Hydrogen House Project" in New Jersey, which uses solar panels to generate electricity to split water using hydrolysis, then store the resulting hydrogen in tanks until it is actually needed. "The hydrogen can then be burned for cooking and heating similar to natural gas, and can be converted into electricity by way of a hydrogen fuel cell." Hydrogen House Project: The Hydrogen House - Hydrogen House Project

You technically don't have to demonstrate that you possess a hydrogen fuel cell system at all, since the law only talks about vehicle capability.

If you can get this to fly, I'm all over it.
 
I know it hasn't been that long, but does anyone have an update on this?
Do you know of an attorney that has been successfully fight for have tax exemptions for Tesla and won?

My financing bank is telling me that they will need to collect the taxes from me, but from reading here, I am supposed to be the one to get the title and pay taxes, etc no?

Thanks
 
I know it hasn't been that long, but does anyone have an update on this?
Do you know of an attorney that has been successfully fight for have tax exemptions for Tesla and won?

My financing bank is telling me that they will need to collect the taxes from me, but from reading here, I am supposed to be the one to get the title and pay taxes, etc no?

Thanks

You are the one that pays the taxes to your county tax assessor collector, if you're in Texas. No idea why the bank would want to take the money from you. As for the exemption, if someone wants to get an NG/Hydrogen regulator and a tank of hydrogen, I'd be happy to assist with proving a Tesla Model S can be powered by hydrogen with my 10kW generator. It's current regulator is for propane.
 
Sorry, I was on my phone when I wrote my earlier response (with every intention of coming back here to give you all the full scoop). Here is what I did. For the record, the guy I was working with said one of the main reasons why I was approved for the exemption is because I was so prepared so be sure you do the same.

Here are the documents I had with me:
  1. On the official Registration Application, I check marked the "Exempt" box and put the following note:
    "Sec 152.090. Fuel Cell capable and >45 MPG"

  2. Letter explaining the exemption in more detail. (text from the letter is at the bottom of this post)

  3. Copy of my window sticker which shows that the car meets the California Air Standards and has an MPG of 92

  4. Title / Proof of Origin Certificate

  5. Proof of Insurance

  6. Drivers Licence
When I gave him the documents above, I played it 100% cool. I just handed everything over with no explanation or comment like "please see that this has an exemption." I just let him work his way through the application... and when he got to the exemption he automatically saw that I had a more detailed explanation in the attached letter.

He told me to hold on for a moment and went to the back to speak with his supervisor. 10 minutes later he came back and said everything was in order. No strange looks. No questions asked. (this is where he said that it was approved because I was properly prepared and have the correct documentation to back up my exemption claim).

He did say that "some Teslas aren't exempt but mine is"... which I found strange but I didn't respond to that comment. I just wanted to get out of there ASAP before he changed his mind. ;-)

For the record, I don't feel as though I cheated the system. By the letter of the law, a Tesla is "capable" and so I personally believe all Teslas should be exempt. If that was not the intent of the law, then they need to rewrite / reword it.

I live in Fort Bend County (near Houston).


Here is the letter explaining the exemption (format it nicely in Word. I think having professional looking documentation helps the perception of your case being legitimate).

To whom it may concern,

The Tesla Model S VIN (Your VIN Here) is a fully electric vehicle capable of being powered by a hydrogen fuel cell like the Joule Box.

In addition, the Tesla Model S has an EPA fuel economy of (MPG from your window sticker) miles per gallon equivalent combined city/hwy. Please refer to the attached copy of the window sticker.

Per the below mentioned tax code section 152.090, sales tax does not apply to the sale of the Tesla Model S motor vehicle.

TAX CODE
TITLE 2. STATE TAXATION
SUBTITLE E. SALES, EXCISE, AND USE TAXES
CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES
SUBCHAPTER A. GENERAL PROVISIONS

Sec. 152.090. CERTAIN HYDROGEN-POWERED MOTOR VEHICLES. (a) In this section, "hydrogen-powered motor vehicle" means a vehicle that meets the Phase II standards established by the California Air Resources Board as of September 1, 2007, for an ultra low-emission vehicle II or stricter Phase II emission standards established by that board and:

(1) is hydrogen power capable and has a fuel economy rating of at least 45 miles per gallon; or
(2) is fully hydrogen-powered.

(b) The taxes imposed by this chapter do not apply to the sale or use of a hydrogen-powered motor vehicle.

Added by Acts 2007, 80th Leg., R.S., Ch. 1266 (H.B. 3319), Sec. 10, eff. September 1, 2007
http:// www. statutes.legis.state.tx.us/Docs/TX/htm/TX.152.htm


Regards,


(Your Name Here)
 
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