Sales Tax on Model S

[ZestyChicken]

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

 

[steve841]

Don't know.... But plan accordingly as you can deduct that giant chunk paid out from your federal return....

 

[carrerascott]

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.

 

[eelton]

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.

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

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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.)

Don't know.... But plan accordingly as you can deduct that giant chunk paid out from your federal return....

 

[ZestyChicken]

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.

 

[steve841]

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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.)

Texas ...like Florida ... Still has some fiscal sanity in their governments and no state income tax.

 

[LagunaDallas]

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.

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.

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


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

 

[ZestyChicken]

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:

 

[LagunaDallas]

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

Here's the one I'm gonna use:

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!

 

[ZestyChicken]

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.

 

[Robert.Boston]

Here's the one I'm gonna use:

View attachment 16307

I take my bourbon neat, too. ;-)

 

[ZestyChicken]

Yeah, I love the double meaning. Only tech geeks are really gonna get it. I'm totally OK with that. :wink:

 

[jerry33]

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.