My way of "sticking it" to TX

[wrf2e]

I posted this in another thread in the "Tesla Motors" section but thought it would be worth posting here as well.

If my math is correct, it does not cost much more to do a factory pickup in Freemont and pay CA tax than it would to have a car delivered to TX. The CA tax is 7.5% vs 6.25% in TX and Texas does not charge tax if you can prove you paid at least 6.25% in another state. With my planned budget of $40k for my Model 3, the difference is $500. That is not a bank breaker to get the experience of a factory pickup and being able to "test" the car on the one-way trip back to Dallas. I am going to make a vacation out of the trip stopping for a day or two in various places on the way back.

My plan is to pickup in CA and pay their tax. When I get back home I will be sending a copy of the receipt to each of my state reps and the governor to show them how much tax revenue they have lost just because they are in the dealership lobby's back pocket.

I know that is just a drop in the bucket, but maybe if others did the same thing the state may realize how ludicrous this law really is.

 

[Panoz]

Texas legislators and/or the public won't know a thing about what you did. You have to ADVERTISE. Write a letter to the local newspaper with a copy of the CA sales tax receipt. Better yet, call the paper and try to get a reporter interested in your story - how Texas missed out on all but a few pennies of your sales tax because they refuse to let an American car company sell cars like a horse & buggy. Get vicious - state things like "GM makes cars in Mexico and China for sale here, but an American car company like Tesla can't sell American cars to Americans thanks to dealerships."

 

[Vitold]

I posted this in another thread in the "Tesla Motors" section but thought it would be worth posting here as well.

If my math is correct, it does not cost much more to do a factory pickup in Freemont and pay CA tax than it would to have a car delivered to TX. The CA tax is 7.5% vs 6.25% in TX and Texas does not charge tax if you can prove you paid at least 6.25% in another state. With my planned budget of $40k for my Model 3, the difference is $500. That is not a bank breaker to get the experience of a factory pickup and being able to "test" the car on the one-way trip back to Dallas. I am going to make a vacation out of the trip stopping for a day or two in various places on the way back.

My plan is to pickup in CA and pay their tax. When I get back home I will be sending a copy of the receipt to each of my state reps and the governor to show them how much tax revenue they have lost just because they are in the dealership lobby's back pocket.

I know that is just a drop in the bucket, but maybe if others did the same thing the state may realize how ludicrous this law really is.

I believe that states have agreements to reimburse each-other (when you prove you paid the tax in another state) so tax you paid in CA will eventually end up in TX

 

[Electroman]

The CA tax is 7.5% vs 6.25% in TX and Texa

Is this true if I buy a CPO also? I specially asked my CPO advisor if I could fly to CA, pick it up over there (since it was in the factory at that time) and drive it back to TX and save $1500 on shipping charges. I was told I could do that only if I am willing to pay both CA and TX taxes.

 

[wrf2e]

Is this true if I buy a CPO also? I specially asked my CPO advisor if I could fly to CA, pick it up over there (since it was in the factory at that time) and drive it back to TX and save $1500 on shipping charges. I was told I could do that only if I am willing to pay both CA and TX taxes.

From the Texas comptroller website: Motor Vehicle Sales and Use Tax

Rates
Sales: 6 1/4 % (.0625) of sales price, minus any trade-in allowance. The taxable value of private-party purchases of used motor vehicles may be based on theStandard Presumptive Value.

Use: Texas residents — 6 1/4 % (.0625) of sales price, less credit for sales or use taxes paid to other states, when bringing a motor vehicle into Texas that was purchased in another state.

New residents — $90 new resident fee due in lieu of use tax on a vehicle brought into Texas by a new resident, if the vehicle was previously registered in the new resident's name in another state or foreign country.

Even Exchange: $5

Gift: $10

 

[wrf2e]

Here is the actual tax code.

Texas Administrative Code

 

[wrf2e]

Texas legislators and/or the public won't know a thing about what you did. You have to ADVERTISE. Write a letter to the local newspaper with a copy of the CA sales tax receipt. Better yet, call the paper and try to get a reporter interested in your story - how Texas missed out on all but a few pennies of your sales tax because they refuse to let an American car company sell cars like a horse & buggy. Get vicious - state things like "GM makes cars in Mexico and China for sale here, but an American car company like Tesla can't sell American cars to Americans thanks to dealerships."

Great idea!

 

[souljah798]

Sure wish I'd known this before my purchase. I would have flown there, paid the taxes, put it on a privately hired transport. Then flew back just to stick it to Texas.

 

[CalDreamin]

The sales tax rate in Fremont, CA is 9.5%, which breaks down as 7.5% for the state and 2% for Alameda County.
Fremont, CA Sales Tax Rate