Welcome to the Republic of Communist California, where they will tax a good, and you donate it to the goodwill and sell a USED item, and RETAX it at a new price.
double taxed, same with used cars.
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Shouldn't Tesla deduct my Trade-in before taxes are calculated?
- Thread starter Investor9872
- Start date
Welcome to the Republic of Communist California, where they will tax a good, and you donate it to the goodwill and sell a USED item, and RETAX it at a new price.
double taxed, same with used cars.
Actually that's not completely accurate IME. Bought a car from a dealer in AZ in 2020, they added AZ taxes and of course charged me. When registering in the state of WA, I had to pay sales tax again which broke down to what my local tax rate on the vehicle would have been if purchased locally MINUS what they charged in AZ taxes, so it wasn't double taxation. Wound up being something like $500 on a $25k vehicle so it wasn't a big deal.
ucmndd
Well-Known Member
It’s absolutely a state thing. Most states will acknowledge tax paid in others and only settle up with you for the difference.
California is having none of that. For a new car, you either pay sales tax in state at the time of sale or use tax (which conveniently happens to be identical to the sales tax rate) when you import and register it.
No disagreement.
My point was a bit more pedantic in response to jrandorin's post. Arizona collected taxes even though the car was delivered to me here in Washington. Arizona issued the title and some type of temporary plate before it was loaded up on the transport trailer. It was then registered in Washington by me the day after taking delivery. Both states tax policies applied here, however it wasn't California style bend over and take it, the net tax impact was no different than if I'd have purchased locally.
Yes. OP's profile says he's in So Cal.
As a few people have mentioned, in California, trading in does NOT reduce the amount of sales tax you pay when purchasing a new car.
See What New Car Fees Should You Pay? | Edmunds. Look under "Trade-in sales tax credit" for California vs. other states.
"3. Trade-in sales tax credit? A "Y" in this column means that you will pay sales tax only on the difference between your new car purchase and the value of your trade-in. An "N" in the column signifies that you will pay tax on the full amount of your new car purchase."
In fact, I never even heard of it saving $ on purchasing until it was mentioned to me in late 2001 when I lived in WA. Prior to living in WA state, I lived only in CA.
stok1232
Member
I just accepted a trade in offer Tesla gave me and it didn't reduce any of my taxes on the new Tesla I'm buying. I wonder if it's a glitch in the system or maybe they stopped doing the deduction? I'll call Tesla tomorrow to see.
honoraryorange
Member
Did you complete your purchase already? If so, they should have given you the credit. It exists for IL.
If you have not completed your purchase already, you should actually read this thread first.
stok1232
Member
Ok I see what happened. Since I didn't decide to do a trade in till two days before delivery they just took off the trade in from the total. I guess they will fix it for me before delivery based on what Mswlogo wrote.
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