TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Sales Tax on Model S

Discussion in 'Texas' started by ZestyChicken, Feb 10, 2013.

  1. ZestyChicken

    ZestyChicken Member

    Joined:
    Jan 4, 2013
    Messages:
    256
    Location:
    Dallas TX
    Just curious how they calculate the sales tax on the Model S. I assume it's based on the place you deliver the Tesla to. In my case, it's Texas which has a tax rate of 8.25% (may rate in Texas, though most cities have the same). However, there are a ton of small towns that have a sales tax of 6.75% in Texas. Just curious if you have the car delivered to the bfe to save sales taxes. That may seem cheap, but you're talking about $1,208 difference on the car I'm getting.

    Anybody else look into this?

    Texas Local Tax Rates
     
  2. steve841

    steve841 Active Member

    Joined:
    Jan 17, 2010
    Messages:
    1,401
    Location:
    Ft. Lauderdale, FL
    Don't know.... But plan accordingly as you can deduct that giant chunk paid out from your federal return....
     
  3. carrerascott

    carrerascott FUEL FTR

    Joined:
    Nov 15, 2012
    Messages:
    893
    Location:
    Charlottesville, Virginia
    I would assume it's taxed based on where you're registering it.

    Virginia has only a 3% tax rate on car purchases... but then they nail us 4% every year for personal property tax. So in the end we get it good from the state.
     
  4. eelton

    eelton Member

    Joined:
    Sep 23, 2012
    Messages:
    190
    Location:
    Chicago, IL
    #4 eelton, Feb 10, 2013
    Last edited: Feb 10, 2013
    I'm pretty sure that won't work. At least here in Illinois, you pay sales tax according to where the car is registered, not where it's purchased. Others have pointed out that, if you take delivery in another state (such as California, for factory pickup), you may have to pay sales tax there first, and then either get your home state to reduce its tax accordingly, or try to get the initial tax paid to the first state refunded. At any rate, you won't come out ahead.

    - - - Updated - - -

    I believe you can deduct state and local income taxes *or* sales tax, but not both. (Edit: I believe Texas has no income tax, so that will be an advantage for the OP.)

     
  5. ZestyChicken

    ZestyChicken Member

    Joined:
    Jan 4, 2013
    Messages:
    256
    Location:
    Dallas TX
    Well crap damn it. You guys are probably right. Otherwise people would just flee the city to guy all their cars outside the city limits.
     
  6. steve841

    steve841 Active Member

    Joined:
    Jan 17, 2010
    Messages:
    1,401
    Location:
    Ft. Lauderdale, FL
    Texas ...like Florida ... Still has some fiscal sanity in their governments and no state income tax.
     
  7. LagunaDallas

    LagunaDallas Member

    Joined:
    Dec 21, 2012
    Messages:
    95
    Location:
    Dallas & Laguna Beach
    Hey Zesty --- Having purchased too damn many (20+) cars in Texas, I can tell you that Texas motor vehicle sales tax is 6.25% no matter what county you live in. Strange, but true. The tax office downtown in the basement of 500 Elm Street is surprisingly easy to get in and out of, usually within 30 minutes if you come organized with all of the paperwork you need. They nearly know me on a first-name basis down there... :) If you order a personalized plate (I got "85KWH" from MyPlates), that's also the same office where it will be delivered.

    - - - Updated - - -

    Here's a link with the same info...


    http://www.window.state.tx.us/taxinfo/mtr_veh/mv_su.html
     
  8. ZestyChicken

    ZestyChicken Member

    Joined:
    Jan 4, 2013
    Messages:
    256
    Location:
    Dallas TX
    Thanks for the post. That's 2% off.

    Sweet car. Sounds like you're gonna be seeing in any day now. Enjoy.

    Here's the one I'm gonna use:

    No Ice.gif
     
  9. LagunaDallas

    LagunaDallas Member

    Joined:
    Dec 21, 2012
    Messages:
    95
    Location:
    Dallas & Laguna Beach
    Thanks! Love the plate. My car is supposedly on a truck that left for Texas on Thursday, so I'm hoping to have it this week! I drove my previous car to its new owner in Houston today and just flew back to Dallas, so I will be counting the hours!
     
  10. ZestyChicken

    ZestyChicken Member

    Joined:
    Jan 4, 2013
    Messages:
    256
    Location:
    Dallas TX
    Awesome. Good luck to you. We need to form a Dallas area Tesla club. :smile:

    I sent you an email btw. Reply if you get a chance.
     
  11. Robert.Boston

    Robert.Boston Model S VIN P01536

    Joined:
    Oct 7, 2011
    Messages:
    7,842
    Location:
    Portland, Maine, USA
    I take my bourbon neat, too. ;-)
     
  12. ZestyChicken

    ZestyChicken Member

    Joined:
    Jan 4, 2013
    Messages:
    256
    Location:
    Dallas TX
    Yeah, I love the double meaning. Only tech geeks are really gonna get it. I'm totally OK with that. :wink:
     
  13. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

    Joined:
    Mar 8, 2012
    Messages:
    12,766
    Location:
    Texas
    You pay your sales tax when you get your plates and title from the DMV. They'll tell you what the amount is based on the registration address.
     

Share This Page