Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

NH resident with required to pay $2500. transportation and $1200. federally mandated fee.

hotgrips

Fred F. Stone, plus Wilma, and Pebbles
Mar 5, 2015
48
19
New Hampshire
With a high powered ICE car, you may pay a "Gas Guzzler fee. Will it belong before we see an Electric GuzzIe tax? I was told I could pick up a 2020 MS LR+ car at the Paramus NJ delivery center. (costs of delivery $2500. Plus $1200.) I asked if I would save $3700. in shipping if I flew to the Fremont, California delivery center and picked up there. "You might save some on transportation cost, but you are obligated to pay California $6,000. sales tax to do that." CA will not refund even though you are a NH resident just picking it up from the manufacturer. Same for any tax-free state. I was also told that the address on the buyer's driver's license must be identical to the Registration. I have a company in MT but live mostly in NH, and both states have no sales tax. Tesla's policy is the driver's license must match Registration's. Tesla has no delivery nor service center in NH or MT. It causes me to wonder how a company can have a Tesla in it's fleet. Apparently, you have to live at your company office or lunchroom (like Elon Musk did for awhile.)

Is there a master list of "Delivery Centers"? Why do you have to take delivery at the nearest delivery center, company policy? Have you actually read and understood what present Tesla Terms and Conditions say to purchase a car?

A sales tax-free state does not let you off Scott free. Government has to have the funding. The local property taxes are very high. My annual local property tax bill is nearly ten (10x) times in 2020 than it was in 1989. And if you are more than 5 miles from a fire station, home insurance is very difficult to find, even if a deep large pond is next to your driveway on your own land.

Can anyone shed light on why so many Californians are fleeing the state? Lucid Air customers will face a similar problem. Tesla did well to build a new factory in Texas instead of CA.
 
Last edited:

glide

Active Member
Jun 6, 2018
2,968
3,032
USA
That is correct. MA has the same policy wrt vehicle sales tax.

It is 100% illegal and I cannot believe neither state has been sued over it yet.

You pay the tax where the vehicle is registered, not where it is sold.
 
  • Disagree
Reactions: MP3Mike

hotgrips

Fred F. Stone, plus Wilma, and Pebbles
Mar 5, 2015
48
19
New Hampshire
Has there been any litigation over this? Are there any links in TMC that spend more time on the subject? Again, have you guys read the Terms and Conditions and understood what is going on? Tesla reserves the right to basically throttle back on power and battery performance. So if they have a poor design out there and it is costing them too much on warranty expenditures, All they need to do is put limitation on the power output to reduce warranty expenses or slow down the rate of claims. It is all done to improve their bottom line. They want to delay or postpone failure past the warranty expiration date, at which time they catch the current owner with a healthy repair bill.

The big issue is that the Terms and Conditions are hung over you for Tesla to exploit at their whim. We all have to sign T&C approval to buy a car. It gives Tesla simple carte- blanche to give us less than we paid for. We cannot roll back our OTA updates with threat of our warranty bring denied. And we cannot legally pressure them due to their unconscionable T&C "boilerplate". Boilerplate is the difficult-to-read and understand language in the T&C.

They have total control over your car. Sure they brag about their 0-60mph, drag strip victories and general performance capability, but the days you can fully enjoy it may be numbered.

Tesla does not hesitate to take advantage of owners. Their motivation is profit, and it should not be at our expense. Imagine the outrage owners of performance ICE cars would express if they had an equivilent reduction of performance.
 
Last edited:

HankLloydRight

No Roads
Jan 18, 2014
12,952
10,973
Connecticut
It is 100% illegal and I cannot believe neither state has been sued over it yet.

You pay the tax where the vehicle is registered, not where it is sold.

How is it illegal? States are allowed to charge SALES TAX in the location where the transaction takes place. Totally LEGAL.

Some states have a reciprocal agreement or policy to credit the buyer with sales tax paid in a different state.

Obviously in states without sales tax that wouldn't apply. But it's not at all illegal.
 
  • Like
Reactions: bmah and MP3Mike

Uncle Paul

Well-Known Member
Nov 1, 2013
6,286
6,826
Canyon Lake,CA
Feds require a standardized factory destination fee be charged the same in every state. Even if you pick it up directly from the assembly line, you will be charged the same fee.
Registration taxes are an entirely different matter. Each State and County set their own rates and policies.
 

MP3Mike

Well-Known Member
Feb 1, 2016
15,558
34,099
Oregon
With a high powered ICE car, you may pay a "Gas Guzzler fee. Will it belong before we see an Electric GuzzIe tax? I was told I could pick up a 2020 MS LR+ car at the Paramus NJ delivery center. (costs of delivery $2500. Plus $1200.)

It sounds like you are combining two different fees. If you are buying a new vehicle you would only pay the $1,200 destination fee. They can't charge you an additional transportation fee. (This is non-negotiable.) If you are buying a used vehicle there is no mandated destination fee, so you would only be paying the transportation fee. (This could be negotiated if Tesla was willing.)

So it is an either or situation on those fees.
 

hotgrips

Fred F. Stone, plus Wilma, and Pebbles
Mar 5, 2015
48
19
New Hampshire
Tesla very definitely quoted an additional $1200. transportation fee to truck it from their the nearest state where they are licensed to sell car. That was in addition to the federally mandated destination transportation fee. I do not understand about paying California sales tax if you are registering it in your home state, and simply getting transport cardboard good for only 30 or 30 days. Does anyone know in what year CA implemented that. The last time I was in CA my CA friend suggested we go to the nearest Porsche dealer to see if he could negotiate a much better price on a new 928. Saved many thousands and given a temporary paper plate taped inside the rear window. It must have been legal because I got a speeding ticket in Arizona driving East to go across the US. The trooper did not have a problem with it. Check out what a local new 2021 BMW or Mercedes dlr. charges for temporary plates in CA. In many states the Department of Motor Vehicles will not give you registration plates unless you prove you are a resident of their state with a state driver's license. I have also bought new without sales tax from Virginia, Massachusetts, and Connecticut. You do have to prove you are from a non-tax state.
 

HankLloydRight

No Roads
Jan 18, 2014
12,952
10,973
Connecticut
I do not understand about paying California sales tax if you are registering it in your home state, and simply getting transport cardboard good for only 30 or 30 days.

As I posted above, CA is allowed to charge sales tax for transactions that take place in CA.

I've bought cars from dealers in the Northeast and never paid local sales tax and only sales tax in my home state when I registered the cars, but that's because all these states have reciprocal tax agreements. The dealers have placed temp tags on the cars so I could drive home.

Not sure what the problem is here.
 

hotgrips

Fred F. Stone, plus Wilma, and Pebbles
Mar 5, 2015
48
19
New Hampshire
Tesla very definitely quoted an additional $1200. transportation fee to truck it from their the nearest state where they are licensed to sell car. That was in addition to the federally mandated destination transportation fee. I do not understand about paying California sales tax if you are registering it in your home state, and simply getting transport cardboard good for only 30 or 30 days. Does anyone know in what year CA implemented that. The last time I was in CA my CA friend suggested we go to the nearest Porsche dealer to see if he could negotiate a much better price on a new 928. Saved many thousands and given a temporary paper plate taped inside the rear window. It must have been legal because I got a speeding ticket in Arizona driving East to go across the US. The trooper did not have a problem with it. Check out what a local new 2021 BMW or Mercedes dlr. charges for temporary plates in CA. In many states the Department of Motor Vehicles will not give you registration plates unless you prove you are a resident of their state with a state driver's license. I have also bought new without sales tax from Virginia, Massachusetts, and Connecticut. You do have to prove you are from a non-tax state.
I called a CA dealer, and they have a newer policy where they will deliver an out-of-state purchased car to Yuma, AZ to save an out-of-state customer from CA sales tax. They are not allowed to have a purchased new car leave their parking lot unless they collect sales tax. Oh well then, Yuma it is. Fred & Wilma
 

Merle

Member
Apr 5, 2019
155
126
Tahoe
I called a CA dealer, and they have a newer policy where they will deliver an out-of-state purchased car to Yuma, AZ to save an out-of-state customer from CA sales tax. They are not allowed to have a purchased new car leave their parking lot unless they collect sales tax. Oh well then, Yuma it is. Fred & Wilma
I'm wondering if they'd do that to Reno NV. Tesla has a facility there (SE of the Gigafactory) to repair and deal with sales. It's up I-80 which means a safe trucker route; and for people, it's an easy route from SJC to RNO or you could even take the train from Emeryville/Berkley/Sacramento as well.
 

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top