Sales tax buying used Tesla out of state?

[proudapron]

Hey everyone!

I'm not sure if this is the right place to ask this kind of question so please forgive me if not. I live in AZ and am planning to buy a car private party in CA. Here in AZ, we don't get charged sales tax on private party car purchases.

So my question is this: if I'm going to fly out to Cali to buy this car from an individual, since I live in AZ and will register it in AZ, do I need to pay sales tax to anyone or am I good to go without sales taxes? I'll be driving the car home.

If you have gone through the same experience (AZ buying from CA flying out) I would love to hear about your experience too!

Thanks!

 

[NickleNiceness]

I believe CA charges sales tax. For you to drive it, it needs to be registered. If I were you, I'd ship it. Private Party is a bit more complicated, as they probably need you there and have a CA title to transfer. When I looked at buying a Tesla from Tesla in CA, they told me I had to pay tax if it was delivered in CA.

 

[proudapron]

Thanks! Were you looking at buying from a private party though or from a dealer/Tesla? It soumds like you were going the dealer route, in which case there would definitely be sales tax.

 

[NickleNiceness]

I bought from Tesla and had them ship car for $2k to Florida. I had a trade in, and trade in had to be handed in to the same delivery location as car was picked up from. They did offer to ship the car NC to Las Vegas or Phoenix if it was in southern CA. So being delivered in FL meant it was much simpler, as title, registration and sales tax were all based on my location, and the trade in value comes off the sales price.

 

[glide]

In a private party sale there would be no tax collected.

If you buy from a dealer in CA they will collect the state sales tax regardless of where you are from.

 

[dblankenbaker]

If you buy from a dealer in CA they will collect the state sales tax regardless of where you are from.

Nope. I bought (used) from a dealer in San Diego and didn't pay any CA sales tax. Doc fee was $80 and included the needed temporary permit to drive home. Flew to San Diego, gave them a cashiers check, and drove the car home. I paid a use tax in AZ when I titled/registered it, which is slightly (maybe 0.5%) less than sales tax would be buying from a dealer in state. You will not pay this if you buy from a private party.

I have bought several new and used cars out of state and flew out and drove back... I have NEVER paid sales tax in the selling state.

When I have bought from a private party, I have gone on-line before flying out and purchased a temporary 3-day permit from www.servicearizona.com.

 

[proudapron]

Wow great responses everyone, you rock!!

So just to confirm the steps I take:
1. Buy 3 day temp tags from servicearizona.com
2. Buy plane ticket (recommendations on cheapest site/anyone willing to sell a buddy pass?)
3. Buy car, get AZ bill of sale, title, etc, drive home with temp tags on back of car
4. Register car with AZ DMV
5. Celebrate awesome tax-free purchase!

 

[glide]

Nope. I bought (used) from a dealer in San Diego and didn't pay any CA sales tax. Doc fee was $80 and included the needed temporary permit to drive home. Flew to San Diego, gave them a cashiers check, and drove the car home. I paid a use tax in AZ when I titled/registered it, which is slightly (maybe 0.5%) less than sales tax would be buying from a dealer in state. You will not pay this if you buy from a private party.

I have bought several new and used cars out of state and flew out and drove back... I have NEVER paid sales tax in the selling state.

When I have bought from a private party, I have gone on-line before flying out and purchased a temporary 3-day permit from www.servicearizona.com.

Some used dealers will skirt the law. You got lucky.

 

[hoops129]

All- are you sure AZ won't collect taxes when you register the vehicle if you bought through private party?

 

[proudapron]

Here's the process I followed when I bought my car from Cali while living in AZ:

1. Confirm with Cali DMV that it's ok for me to drive home with the seller's plate (it was)
2. Buy car from seller and get notorized AZ bill of sale with seller at his bank (or wherever)
3. Drive home and freak out about my awesome car the whole way!
4. Schedule appointment with AZ emissions testing EV division to confirm my car is electric so I don't pay absurd registration fees (why does AZ require us to do this?!?!)
5. Register car in AZ for pennies and get cloud plate
6. Continue to freak out about my awesome car!!

Above steps confirmed with AZ DMV that there is NO sales tax since buying private party out of state and registering in state.

I hope that helps!

 

[dirkbike1]

If the private party seller has clear CA title, you will have no problems.
I made the mistake of buying a CA car with the CA application and lien release and California demanded sales tax afterwards. Didn't have to pay but was a major hassle.

 

[MS4Yar]

Hi,

I am in similar situation. Buying a used Model S from Tesla in Costa Mesa, California and I live in Arizona.

Anyone one went thru this process. Based on the info it is possible but the SA says it’s not possible. She is like either ship it or cancel reservation. I know they are either lazy to go thru the process or trying to screw me of $2000.

If anyone bought a used Tesla from Tesla site from California and drive back to Arizona or other states please guide me. I really like this car so want to get it but avoid shipping costs as I can fly and drive back for very less.

 

[swaltner]

@MS4Yar, as far as I have heard, there is no way around paying California sales tax if you buy a vehicle from a dealer (or company-owned sales office in the case of Tesla) and take delivery in state. If you don't want to pay California sales tax when buying a vehicle from a California dealer, you need to have them deliver it to you outside of California to avoid the sales tax. Tesla is not trying to screw you out of $2,000. They are following the law in California.

You have a few choices: Pay 10% sales tax if you accept the vehicle in California; Pay the $2,000 shipping fee; Select a different vehicle.

At one point, there was a proposed law that would allow new-vehicle tourism (allow out-of-state folks to take delivery at the Tesla factory without paying CA sales tax, and then give then X days to take the vehicle out of California and drive it back home). This didn't pass, I suspect because the voting public didn't understand that this change would drive tourism dollars into their state and saw it as a way that rich people were avoiding taxes. It didn't pass, so we're stuck with the current situation.

 

[MS4Yar]

I spoke to a Salestax rep in AZDOT(DMV). They mentioned if i pay sales tax in CA and show the proof i do not need to pay State sales tax in AZ if its lower than CA(which it is) but i need to pay city tax.

Also i received some info from Tesla i can pick up in CA with some additional steps so waiting on more clarity. Will post my experience once i go thru this process.