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Wiki Model S Delivery Update

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We actually had this discussion 500 pages ago and the answer is no, you don’t have to pay sales tax on a car purchased in California if you are an out of state resident and register it in your home state. If you or anyone else is planning on road tripping your car home I can send the research again from the CDTFA, or Tesla would probably be familiar with the process as they do a lot of factory direct pickups.
You gotta stop with misinformation. You're in CA. Have no idea how CA operates. I grew up there. Thank my lucky stars I left. CA absolutely charges the sales tax. Some states realize that you already paid sales tax and will give you a credit to some extent. But. Your information is completely false.

Edit for more detail:

Vehicles purchased for use outside California
You are generally not required to report tax on a vehicle that is sold and delivered for use outside California. You
must establish that the vehicle was delivered to the purchaser outside California (for example, delivered by your
employee or by common carrier), and that the purchaser did not take possession of the vehicle in California.

 
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It is. Assuming they do not raise the price between order and delivery.
FWIW I'm struggling with FSD - anyway, I'm leasing, so if I get it 1 second after my lease, I pay $10k. if I get it 1 second before i pick up the car, i suppose i'm only paying about 45% of it (if it is folded into the lease). other option is the monthly subscription which is supposed to be a worse value - but not sure if a worse value if i only have the car 3 years.
 
Click on vehicles and then scroll down to “Not Purchased for Use in California”. The law is pretty clear. I did it for the company I worked for about five years ago and the dealer was confused as hell but after a little research and paperwork they delivered the car and didn’t collect tax. Of course, tax was due in Nevada where the car was registered.

I think you need to read it again...

If you purchase your vehicle for use outside of California, your purchase may not be subject to use tax.

So if you don't purchase it for use in California you may be Ok. Of course look at the definition of use in California:
Functional use means use for the purposes for which the vehicle was designed. For example, vehicles designed for personal use are functionally used when merely driven;

So don't drive it in California. 🤣

And if the vehicle is in California in the first 12 months you have to provide a lot of documentation, one of which is:

A statement signed by the seller verifying the date and location of the vehicle's delivery out of state.

Hmm. You had to take delivery outside the state.

And then there is this section: Purchases for Use Outside of California:
You may not be required to pay California use tax if the only use of the vehicle in California is to remove it from the state and it will be used solely thereafter outside this state, and you do not register the vehicle in California with the DMV.

Ok, so if you buy it in California and immediately drive it out of state and don't ever bring it back to California you might not owe tax. But we know that isn't what people would do. They would use it for transportation around California as a vacation on their way back home.

And they make it very clear in their guide for dealers: Tax Guide for Motor Vehicle Dealers

Sales of Vehicles for Use Outside California
You generally do not have to report and pay California sales or use tax on a vehicle that is sold and delivered outside of California, for use outside California.

You must show evidence that the vehicle was delivered to the purchaser outside California (for example by an employee or common carrier) and that the purchaser did not take possession of the vehicle in California. See, "Required Documentation for Vehicles Delivered Outside of California" under recordkeeping for requirements.

In any case Tesla will not delivery a vehicle to you in California without collection the state tax. (Which by law they have to.)
 
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Fremont told me this morning 2 more months for my CF/cream interior. I’m waiting, but it sure was tempting to get my car in 2 weeks if I switched to black/wood.
If you switched from CF to wood, the price doesn’t change.
Since switching from cream to black reduces the price by $2k, I respect they were willing to do it 👌
If you are seriously interested in factory delivery I’ll research to get the exact code sections and forms needed to fill out. I’ve done it and it’s completely legal. It’s almost unbelievable Tesla doesn’t have this down. Then again…

One caveat though, somewhat unrelated. I did a factory delivery when I got my P85D and was told it’s ready next Tuesday. On Monday, no, it will be ready Thursday. On Wednesday, for sure next week. So besides still having to pay destination charge expect some additional airfare too.
Thank you, I appreciate it. When I was told I’d have to pay CA taxes, I was told it’s probably better to leave my order alone. He said I’d probably get my car delivered faster in NY compared to CA.
 
I think you need to read it again...



So if you don't purchase it for use in California you may be Ok. Of course look at the definition of use in California:


So don't drive it in California. 🤣

And if the vehicle is in California in the first 12 months you have to provide a lot of documentation, one of which is:



Hmm. You had to take delivery outside the state.

And then there is this section: Purchases for Use Outside of California:


Ok, so if you buy it in California and immediately drive it out of state and don't ever bring it back to California you might not owe tax. But we know that isn't what people would do. They would use it for transportation around California as a vacation on their way back home.

In any case Tesla will not delivery a vehicle to you in California without collection the state tax. (Which by law they have to.)
I see. So you are a California CPA like myself. This was discussed 500 pages ago and a few other CPAs chimed in and agreed. And I have literally done it. But, it’s the Internet, so keep it interesting.

One more comment. You CAN bring it back into CA. You just can’t be a CA resident and there’s a waiting period and % of use test. Although that is entirely theoretical as CA would never pay attention. I’ve dealt several times with this issue with corporate jets and the test is 50% of use has to be in interstate travel, and because we are dealing with millions in taxes, they pay attention. They won’t be spying on you if you take your car to Disneyland or go wine tasting.
 
I think you need to read it again...



So if you don't purchase it for use in California you may be Ok. Of course look at the definition of use in California:


So don't drive it in California. 🤣

And if the vehicle is in California in the first 12 months you have to provide a lot of documentation, one of which is:



Hmm. You had to take delivery outside the state.

And then there is this section: Purchases for Use Outside of California:


Ok, so if you buy it in California and immediately drive it out of state and don't ever bring it back to California you might not owe tax. But we know that isn't what people would do. They would use it for transportation around California as a vacation on their way back home.

In any case Tesla will not delivery a vehicle to you in California without collection the state tax. (Which by law they have to.)

And from their guide for dealers: Tax Guide for Motor Vehicle Dealers
Yup.
 
I see. So you are a California CPA like myself. This was discussed 500 pages ago and a few other CPAs chimed in and agreed. And I have literally done it. But, it’s the Internet, so keep it interesting.
You can keep quoting whatever you want. Govt website says no. No no no no.

CPA or not. You're a terrible one if you are and have no idea. If you take possession of a vehicle in CA you are required to pay sales tax.
 
You can keep quoting whatever you want. Govt website says no. No no no no.

CPA or not. You're a terrible one if you are and have no idea. If you take possession of a vehicle in CA you are required to pay sales tax.
Not a CPA, although the wife is a CMA. But if other states offer a partial credit, isn't that worth looking into?
 
Not a CPA, although the wife is a CMA. But if other states offer a partial credit, isn't that worth looking into?
I said that in my first post. Some states offer a tax credit which would offset the CA sales tax. That's different from CA exempting sales tax from a vehicle that was taken possession of in CA. Which you are required to pay sales tax. This same sales tax scheme is why Amazon almost pulled out of CA completely. Sales tax and CA are not friends. The state is bankrupt. It's gotta do something to keep afloat.
 
I think you need to read it again...



So if you don't purchase it for use in California you may be Ok. Of course look at the definition of use in California:


So don't drive it in California. 🤣

And if the vehicle is in California in the first 12 months you have to provide a lot of documentation, one of which is:



Hmm. You had to take delivery outside the state.

And then there is this section: Purchases for Use Outside of California:


Ok, so if you buy it in California and immediately drive it out of state and don't ever bring it back to California you might not owe tax. But we know that isn't what people would do. They would use it for transportation around California as a vacation on their way back home.

In any case Tesla will not delivery a vehicle to you in California without collection the state tax. (Which by law they have to.)

And they make it very clear in their guide for dealers: Tax Guide for Motor Vehicle Dealers
I believe this is correct. In 2004 I was looking to buy a special model of a Lexus LS 430 and the only one I could find in the western half of the country was in San Diego. I bought it but had to have it shipped to New Mexico to avoid CA sales tax. I would have liked to pick it up and drive it back but I would have had to pay the tax.
 
I said that in my first post. Some states offer a tax credit which would offset the CA sales tax. That's different from CA exempting sales tax from a vehicle that was taken possession of in CA. Which you are required to pay sales tax. This same sales tax scheme is why Amazon almost pulled out of CA completely. Sales tax and CA are not friends. The state is bankrupt. It's gotta do something to keep afloat.


Ok. I ran into the same problems with aircraft. My only point was run it to ground and see if it makes sense.
 
But we digress into crap topics again. Fremont pickup isn't gonna be any faster. We'll all have to put on our big boy (or girl) pants and wait for our cars. :(

Let's keep talking about positive stuff rather than negative stuff. Like awesome 0-60 times. Great and better fit and finish than M3/MY. Keep excited. I'm about to have to bounce off this thread because everything is negative with a bit of positive sprinkled in every time I look. I don't even want to keep up. About 1000 pages ago were good topics and conversations. Now it's all trash (except when we're talking about how awesome the cars have been that have been delivered)
 
FWIW I'm struggling with FSD - anyway, I'm leasing, so if I get it 1 second after my lease, I pay $10k. if I get it 1 second before i pick up the car, i suppose i'm only paying about 45% of it (if it is folded into the lease). other option is the monthly subscription which is supposed to be a worse value - but not sure if a worse value if i only have the car 3 years.
Hold off and wait for the subscription - though who knows when that is officially coming.
 
But we digress into crap topics again. Fremont pickup isn't gonna be any faster. We'll all have to put on our big boy (or girl) pants and wait for our cars. :(

Let's keep talking about positive stuff rather than negative stuff. Like awesome 0-60 times. Great and better fit and finish than M3/MY. Keep excited. I'm about to have to bounce off this thread because everything is negative with a bit of positive sprinkled in every time I look. I don't even want to keep up. About 1000 pages ago were good topics and conversations. Now it's all trash (except when we're talking about how awesome the cars have been that have been delivered)
the car is a freak of nature....in a good way. for those of us who can't get enough speed (like me 😁) , it will be interesting to see how we can further enhance performance with light weight rims/tire combos or other weight reduction options. looking forward to hearing more about the track package that will be offered! Will we be able to get this plaid into the 8's?
 
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