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Discussion in 'Model S: Ordering, Production, Delivery' started by Spacex, Jan 5, 2017.
what states can i pick up a tesla and i dont have to pay sales tax??
Unless I am mistaken, you will owe sales tax in the state where you register the vehicle.
ok. i thought i read online that they pass a bill in Fremont, CA that if you were out of state you can pick the Tesla at yhe factory and you dont pay sales tax. The bill is SB 680
That could be--I'm not up on that--but I am pretty certain that whatever state you register the car in would collect the sales tax.
oh ok. it is better to pay the delivery fee and have deliver to the closest Tesla service center.
You don't have to pay CALIFORNIA sales tax. You still would have to pay your own state's sales tax upon registration.
I thought that Bill thingy did not get passed, so you will have to pay CA tax if you take delivery there. Apparently some states give you credit for the CA tax but some do not? Plus the CA tax is pretty high, so might be higher than your home state. Oregon has no sales tax I believe.
as others have noted, the sales taxes are collected by the state where the car is registered regardless of where it is purchased. If you buy the car in state A and then register it in state B state B gets the taxes. there are two ways that this can work, either you pay the taxes due in state A and when you register/title it in state B, state B will credit the taxes paid to state A or you don't pay tax in state A and when you do register/title the car in state B you pay the taxes.
there are a few states that waive sales taxes as an incentive for the purchase of an EV but in order to register the car in those states you need a presence in one of those states.
the bottom line is that there really isn't a way to avoid the taxman.
Also, you will pay the delivery fee no matter where you get the car, including Fremont.
You pay taxes to the state you register your car with. Mine, luckily, doesn't have sales tax on electric cars.
In some states you can opt out of the software upgrades and save that tax, possibly registration $ and then add them later. albeit at a higher cost but it may balance to your favor.
California deliveries BEWARE: I've looked into this in-depth preparing for a future delivery at the factory.
CA will charge you sales tax on the purchase if you have it delivered in CA, even though you are an out of state resident, just like if you drove over from Nevada and bought a refrigerator in Fremont. The only way around this is if your home state credits that tax paid against the tax due when you register in your home state. My home state of Kansas does not. I recently had a friend purchase a car in CA and they ended up paying sales tax to both states.
The state bill that was attempted but did not pass last year attempted to allow out of state residents to pay no tax in CA, to allow "car delivery tourism." This is exactly what I wanted to do, fly out, spend money in CA on hotels, food, & entertainment, take delivery of the car at the factory and drive home. But the 9.5% tax rate if Fremont effectively kills this idea.