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

[hotgrips]

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.

 

[glide]

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.

 

[hotgrips]

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.

 

[HankLloydRight]

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.

 

[HankLloydRight]

r. (costs of delivery $2500. Plus $1200.) I asked if I would save $3700

Some people have been able to save on the shipping fee, but almost nobody gets out of the $1200 destination/doc fee. Legally they can't waive the destination fee (although it has happened in isolated cases).

 

[Uncle Paul]

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]

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]

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]

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.

 

[Stavinski]

“Tesla’s motivation is profit, and it should not be at our expense” ??? So... who’s expense should it be if not Tesla’s customers? just curious?

 

[hotgrips]

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]

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.

 

[rexki]

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.

Source Here
Legal or not illegal - here is the CA Gov website to clarify how its done. Appears it could be construed as "illegal" or inappropriate if a auto manufacturer or dealer charged a person with sales tax who has an out of state license and residence who makes proper assertion for out of CA state registration.

I bought a car from CA Honda Dealer back in 2006 had it shipped for $800 to my house and did not pay the dealer or state of CA any sales tax. I paid the piper $$ when I went to the Illinois DMV to register and tag the car - 100% of the local auto tax rate for my home address.

 

[HankLloydRight]

I bought a car from CA Honda Dealer back in 2006 had it shipped for $800 to my house and did not pay the dealer or state of CA any sales tax.

That's not the question at hand. You did not ***GO TO CALIFORNIA*** and buy the car (i.e. take delivery) there. If you had, you would have been charged CA sales tax.

You seem to be confused about what's being discussed here.

 

[rexki]

That's not the question at hand. You did not ***GO TO CALIFORNIA*** and buy the car (i.e. take delivery) there. If you had, you would have been charged CA sales tax.

You seem to be confused about what's being discussed here.

In person delivery or telephonically and carrier shipped is no difference - I quoted the CA government website that says you will not be charged (technically is say "may not") - not confused at all!

 

[MP3Mike]

In person delivery or telephonically and carrier shipped is no difference - I quoted the CA government website that says you will not be charged (technically is say "may not") - not confused at all!

Wrong. If you pick-up/purchase it in person, it is "for use in California" as you have to use it to get out of California. And you are subject to state taxes on the purchase.

 

[HankLloydRight]

What's on a website and what's actually in practice are two different things. Every person who has attempted to pick up their cars at the Fremont factory for use "outside of CA" has been charged CA sales tax. Tesla for a while was even shipping cars to NV for out-of-state buyers, but CA made them stop that practice as well. So go ahead and keep posting whatever you want, but it's not how it works in reality.

 

[HankLloydRight]

Wrong. If you purchase it in person, it is "for use in California" as you have to use it to get out of California. And you are subject to state taxes on the purchase.

Exactly, thanks and as I stated above and will repeat:

You did not ***GO TO CALIFORNIA*** and buy the car (i.e. take delivery) there. If you had, you would have been charged CA sales tax.

 

[rexki]

Wrong. If you pick-up/purchase it in person, it is "for use in California" as you have to use it to get out of California. And you are subject to state taxes on the purchase.

That's not what the CA gov website says - sounds like you guys have been treated rather improperly by the dealerships and sales oultets and contrary to state law - I have quoted the state website - what more can I say than get a lawyer or go "pro se"?

 

[rexki]

Exactly, thanks and as I stated above and will repeat:

STATEMENT PURSUANT TO SECTION 6247 OF THE CALIFORNIA SALES AND USE TAX LAW The timely acceptance in good faith by the seller of this CDTFA-447
Link Here

Here is the state Law that backs up the form (above) so you do not have to pay the sales tax if any end user from out of state shows up in person to buy any car in any location in California, who needs to get there car back to their homestate and thus gets a waiver from the CA DMV to be legal on the drive from said location while on State of California streets and highways.

Good God!!