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Purchasing EAP Post-Delivery Taxed?

Discussion in 'Texas' started by quasimoto, Jul 10, 2018.

  1. quasimoto

    quasimoto Member

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    I've tried using the search function but couldn't find anything specific to Texas. To any of you that purchased the Enhanced Autopilot after taking delivery, were you taxed on the $5000 upgrade? If so, was it the vehicle sales tax (6.25%) or your local sales tax (8.25% in Austin)? Thanks!
     
  2. quasimoto

    quasimoto Member

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    Also, I meant $6000, since it's post-delivery.
     
  3. brkaus

    brkaus Active Member

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    Good question. Didn't think about it. My guess is local sales tax rate as the title/registration is already processed.
     
  4. jelloslug

    jelloslug Active Member

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    When I purchased AP for my Model S after delivery, it was taxed at the normal sales tax rate, not the rate a car purchase would have been taxed at.
     
  5. quasimoto

    quasimoto Member

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    Alright, that's really good to know. I'll see if I can just try to add it before delivery to take advantage of the $5000 price point and hope they don't charge the $500 modification fee I've seen in some threads. Thanks for your quick responses guys!
     
  6. jgs

    jgs Active Member

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    I'm especially curious if they collect sales tax on post-delivery at all in states where they aren't permitted to sell cars (cough Michigan cough). I'll try posting in the Michigan forum, but posting here as well since Michigan isn't the only place where this sorry state of affairs exists.
     
  7. CrazyCoconut

    CrazyCoconut Member

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    I'm also researching this topic and am a little confused by your post. Your location says SC, but OP's question is for TX. Is your experience while you lived in TX?
     
  8. jelloslug

    jelloslug Active Member

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    Your state does not matter. If you buy it after the car is delivered, you are taxed like a "normal" purchase.
     
  9. CrazyCoconut

    CrazyCoconut Member

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    It does matter. Sales tax is a state law matter. For example, CA doesn't tax on non-tangible, digital software sales.
     
  10. jelloslug

    jelloslug Active Member

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    And what I said is still true. If you buy it after the fact, it is not taxed like it would be if it were a part of the car purchase.
     
  11. chillaban

    chillaban Active Member

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    Except even in CA, all of the unlock options still appear to be taxed at my county sales tax rate. For whatever reason, Tesla's lawyers must not have been too comfortable with labeling these unlocks as a digital software sale delivered without physical medium.
     
  12. jgs

    jgs Active Member

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    Sales tax is an incredibly complicated minefield. I dealt with it years ago as a small business owner and our lawyer's advice then was "just charge the tax, it's too hard/expensive to figure out where you stand in every locality". Presumably when you get to a certain size + sales volume it becomes worth it, but probably Tesla's not there yet.

    I'm a bit surprised there's not some outsourcing firm handling all the tax details as a business, though.
     
  13. CrazyCoconut

    CrazyCoconut Member

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    Agreed, that's why I wanted to ask someone in TX who has added EAP after delivery about whether they were taxed.
     
    • Like x 1
  14. EV-Tiger

    EV-Tiger Member

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    I do not live inside a city limits. I just purchased AP for my Model 3 (after I took delivery) for the discounted $5,500. I was then taxed an additional 8.25% sales tax rate, which was not the sales tax rate I was charged when I purchased the car (which was 6.25%).
     
    • Informative x 2
  15. rideincircles

    rideincircles Member

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    Fort Worth, Texas
    It sounds like the final price will be $5953.75 if the cost is $5500 and $6495 if it is $6000. I thought I saw something about it not being taxed a while back, so was considering skipping it up front and buying it with the tax return, but it seems like getting it financed is the best bet for overall costs.

    Just putting the values down to answer the question completely.
     
  16. CrazyCoconut

    CrazyCoconut Member

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    It's weird that if buying it with the car, you are paying only state sales tax. But if you buy it post-delivery, you pay state AND local sales tax. I did not expect that.

    In any case, I broke down and told my IDA to add it to my MVPA before payment. She assured me that I would only pay the $5000 and I will keep the old paint and delivery prices.
     
  17. Darmie

    Darmie Supporting Member

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    Clear Lake TX. (Currently in lake Charles LA)
    I purchased after the sale and it was $6,000.00. Tax Tesla collected was another $495.00
     
    • Informative x 1

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