Purchasing EAP Post-Delivery Taxed?

[quasimoto]

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!

 

[quasimoto]

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

 

[brkaus]

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

 

[jelloslug]

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.

 

[quasimoto]

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.

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!

 

[jgs]

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.

 

[CrazyCoconut]

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.

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?

 

[jelloslug]

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?

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

 

[CrazyCoconut]

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

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

 

[jelloslug]

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

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.

 

[chillaban]

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

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.

 

[jgs]

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.

 

[CrazyCoconut]

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.

Agreed, that's why I wanted to ask someone in TX who has added EAP after delivery about whether they were taxed.

 

[EV-Tiger]

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%).

 

[rideincircles]

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.

 

[CrazyCoconut]

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.

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.

 

[Darmie]

I purchased after the sale and it was $6,000.00. Tax Tesla collected was another $495.00

 

[Ebkbk]

Car is registered in Washington (8.6% tax) car is used in Oregon 90% of the time as it’s cities share a border. Purchase was done in Oregon. Sooo... Oregon has no sales tax. How do I make this work to not pay tax on the 6000 fsd?

 

[OrbiterTI4]

Car is registered in Washington (8.6% tax) car is used in Oregon 90% of the time as it’s cities share a border. Purchase was done in Oregon. Sooo... Oregon has no sales tax. How do I make this work to not pay tax on the 6000 fsd?

What's the address for the primary contact in the Tesla account? What's the billing address for the payment method? I'm guessing one of those two is used to determine, so if one of those is OR, you may have a shot.