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Sales tax on an out of state purchase from TESLA

Discussion in 'Off Topic' started by Insane, Jul 18, 2015.

  1. Insane

    Insane Banned

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    #1 Insane, Jul 18, 2015
    Last edited: Jul 18, 2015
    There are no TESLA stores in the state I live in. Initially sales invoice showed the sales tax of the state I am picking up because the Financing company I chose was also in the same state. After getting a loan from Aliant CU, I wasn't required to pay the sales tax for the state I was picking it up from.

    About months before picking up the P85D, I personally went to the local DMV and inquired about sales tax. Handed over the Vehicle quote. He said 6 % on the quoted price or 5 % on MSRP. I questioned him on the NADA value. He checked, told me it shows $ 82,000. I asked if I could pay 6 % on the $ 82,000. He said, "No, let me check", went to an officer behind, came back and said "No, it will be 6 % on the price you paid to the dealer. We wont use the NADA value". Questioned him several times and he insisted "No".

    Went to local DMV to title, register etc. The clerk asked for Sales Invoice as expected, I couldn't find the document in my folder and looked like I dropped it somewhere. She went to officer behind. Officer insisted on the invoice. I said I think I lost it. After several exchanges, she said "Go back and look for it first". I asked "What if I can't find it ?". She said, well...... then we will have to tax you on the retail value which would be more than what you paid. I asked "what would that be ?" The clerk checked, said $ 79,000. I said "can I just pay on that ?" She said "of course, sure" .

    Wanted to find out about other members experience and or thoughts on this.
     
  2. MitchJi

    MitchJi Active Member

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    Hi,

    A friend of mine avoids paying CA Sales Tax by leasing her cars from her fathers company which is in Oregon which doesn't have a sales tax.
     
  3. Insane

    Insane Banned

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    There are no sales tax in New Jersey and one other state. Thought of registering a company. Is that what most people do ?
     
  4. BoerumHill

    BoerumHill Member

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    NJ sales tax is 7%.

    AK, DE, NH, MT & OR have no sales tax.

    What'd that come out to, $20K x 6%? Congrats on cheating your state out of $1200.
     
  5. Insane

    Insane Banned

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    #5 Insane, Jul 18, 2015
    Last edited: Jul 18, 2015
    NJ has no sales tax on Zero Emissions. I almost purchased a vehicle from TESLA new jersey. The sales person confirmed there is no sales tax. I spent "a million hours" with inquiries and investigations with DMV, insurance etc, planned to register under my BIL. His wife got afraid of being questioned by IRS, taxes and resisted. Aborted the plan.



    I am not sure if I should perceive this as cheating. The person who advised me works in the same DMV office where I was inquiring about property taxes on the vehicle. ( Not to be mistaken for sales tax ). Towards the end, she made a comment. "you will be paying a lot for sales tax". After some conversation, she said "make sure you don't provide the sales invoice to the clerk and you can save $ 2 K". I told her about my previous inquiry and she said "I know. Just don't bring it"
     
  6. SabrToothSqrl

    SabrToothSqrl Active Member

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    States have enough money.
     
  7. Insane

    Insane Banned

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    This wouldn't have been possible if the state gave TESLA license to sell. I would think this situation would apply to all the states that banned TESLA.
     
  8. ZBB

    ZBB Emperor

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    If she keeps the car in CA (or a state other than OR), the Oregon plates are technically illegal in CA (or other states). I know this is a common tax dodge (seen it done in AZ, also with OR plates). CA and AZ (and other states with sales/use taxes on cars) will collect the use tax when the car is registered in the person's residential state...

    Note -- I am not a lawyer or tax adviser, so you may wish to consult one to discuss this topic before deciding what you personally do.
     
  9. BoerumHill

    BoerumHill Member

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    LOL

    It was only possible because you lied.

    Turns out most people do this, maybe as many as 80%. It would have never occurred to me. I don't think I'll ever comprehend breaking the law over a few shekels. Why not just pay your share and move forward?

    Anyway, good on ya. You got one over on the man. 'grats
     
  10. smsprague

    smsprague Member

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    Buying a Tesla in Arizona was interesting in Sales tax. Tax in Tucson is 8.1%. 5.6% state + .5% county + 2% city. Since you can't buy car in Arizona I had to register and pay sales tax at the DMV myself. They only charged me 5.6% because it's a state agency - silly.

    The Arizona auto dealers lobby is costing the cities and counties.
     
  11. Ludicrous

    Ludicrous Banned

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    I didn't lie :mad: I just discovered my dog ate the Sales Invoice. I found it in the dog poop and it now reads $ 79 K.
     
  12. Galve2000

    Galve2000 Member

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    don't you need a NJ drivers license to register a car in NJ (and take advantage of the 0% sales tax on Zero Emissions vehicles?
     
  13. Insane

    Insane Banned

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    #13 Insane, Jul 18, 2015
    Last edited: Jul 18, 2015
    Maybe. Insurance company said they don't need it. If you have more than one address, then maybe not. But I did look into changing my drivers license. Talked to 2 different persons @ New Jersey DMV. They both told me the state of New Jersey will allow me to register with my state license and it is very common. They however said it may be difficult to get insurance. Insurance company allowed me as I would have one car in KY and one in New Jersey. All I needed was an address. There is one small catch. The registration must be prepaid for upto 4 or 5 years and is not refundable if moved out of New Jersey. A stronger reason for pursuing this option was because I was negotiating a job offer in New Jersey at that time.
     
  14. NigelM

    NigelM Recovering Member

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    Actually the OP 'got one over' on his fellow tax payers.

    - - - Updated - - -

    My thoughts: you lied and cheated for money......
     
  15. Galve2000

    Galve2000 Member

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    Interesting. good to know for the next model S purchase. I financed my current one and my credit is very specifically tied to my address in NYC. but the next one will come with NJ plates tax free.. lets just hope the incentive still exists at that time.
     
  16. cpa

    cpa Member

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  17. Insane

    Insane Banned

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    I am not sure. NJ by default has sales tax. The DMV staff told me if I am just establishing residency, it would be a challenge to get the exemption. May require more proof.

    - - - Updated - - -

    I didn't lie. I have Alzheimer's disease and when I came home I saw my dog chewing on the sales invoice.
     
  18. NigelM

    NigelM Recovering Member

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    Ah right. Well, as a reminder, here's your original story so you can do the right thing and stop being a crook:

     
  19. Insane

    Insane Banned

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    Looks like you have a problem.
     
  20. bonaire

    bonaire Active Member

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    I probably wouldn't have posted this in public. It sounds like you paid sales tax on a "value assumption" of $79,000 for a P85D.
     

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