Minimizing tax in Colorado

[more863-also]

Hi TMC,

My dad is looking to purchase a Model S in the near future. We both live in Colorado, however he lives in Denver and I own a home in unincorporated Gilpin County, a much more rural area. Purchasing a car is much cheaper for me as I pay no city tax and a lower county tax rate.

Would it be possible/legal to register this new car in my dad's name at my house? He does stay there from time to time, maybe a week a month if he's visiting the mountains. Most importantly, we're both Colorado citizens per our DLs.

Let me know if this is worth exploring, or if I'm being a tax-shirking asshole

 

[DriveMe]

Colorado has a huge state tax credit for EV's, correct? I've read it's $5,000 in addition to the Federal Tax credit of $7,500.
So the main question you will need to decide on is who of you will be claiming the tax credits on the next return and whether that person has enough taxable income to take the full advantage of it.
I am assuming a new Model S, not used.

Welcome to the forum!

 

[Bebop]

Colorado has a huge state tax credit for EV's, correct? I've read it's $5,000 in addition to the Federal Tax credit of $7,500.
So the main question you will need to decide on is who of you will be claiming the tax credits on the next return and whether that person has enough taxable income to take the full advantage of it.
I am assuming a new Model S, not used.

It is also important that whoever is going to claim the tax credits that they are FIRST on the registration. So if you are, then your name is at the top and your dad is second. If your dad will claim, then his name at the top and yours second. At least, when it comes to the federal.

What is the city and county rate in Denver?

 

[more863-also]

Thanks for the welcome!

The idea would be to register the car in his name, at my address. That way there's no issue with who claims the tax credits. Just FYI, Colorado credits are actually refundable and are often applied at point-of-purchase at traditional dealerships.

The tax rate is 4.5-ish in my area, and 9.5-ish in his. This would be a sales tax applied at time of purchase. I believe the recurring reg fee is also slightly lower as well, but that's not the issue - we'd be happy to transfer the registration back to his Denver address after the tax is paid (maybe after waiting a year?).

 

[Dan Baldwin]

I think the question is whether your Dad can register HIS car at an address that is not his residence ? A wild guess would be no, and I doubt that fact that you're family makes any difference.

 

[more863-also]

I think the question is whether your Dad can register HIS car at an address that is not his residence ? A wild guess would be no, and I doubt that fact that you're family makes any difference.

Right, I'm looking to move past the realm of wild guesses since we're talking many thousands of dollars. I don't see why he wouldn't be able to register his car at a place he sometimes resides at, considering it's in the same state.

 

[Bebop]

Thanks for the welcome!

The idea would be to register the car in his name, at my address. That way there's no issue with who claims the tax credits. Just FYI, Colorado credits are actually refundable and are often applied at point-of-purchase at traditional dealerships.

The tax rate is 4.5-ish in my area, and 9.5-ish in his. This would be a sales tax applied at time of purchase. I believe the recurring reg fee is also slightly lower as well, but that's not the issue - we'd be happy to transfer the registration back to his Denver address after the tax is paid (maybe after waiting a year?).

i'm not sure your bank is going to like that. Although I could be wrong. Assuming you are financing, the address on the loan is the one on the registration. So if your dad takes out the loan, it will be his home address on that loan.

Best thing to do is to get in touch with whoever you plan on financing with to be sure. But in general, the idea of your dad registering the car to your address should not be an issue. I'm wondering if the bank would care or not.