Solar panel sales tax for california

[eliang3118]

Tesla recently sent me an updated contract for an 8.16 kW system with additional sales tax. The original quoted price was $16400 for the system but the recent contract has an additional tax amount of $621 for the sales tax. Did anyone encounter this issue with their system install? I live in california. Thanks!

 

[Redhill_qik]

Same here, solar equipment isn't sales tax exempt in California and it was added to my original quote based on the final hardware that was used.

 

[SaveOurPlanet]

I could not figure out the exact rate but it seems to be a reduced CA state tax only and exempt from local county and city sales tax, I think it is around 2.5% in total in my case. Also, your system will not increase your property tax like some major home improvement, but I think that policy will expire eventually.

 

[Redhill_qik]

I could not figure out the exact rate but it seems to be a reduced CA state tax only and exempt from local county and city sales tax, I think it is around 2.5% in total in my case. Also, your system will not increase your property tax like some major home improvement, but I think that policy will expire eventually.

I should be based on the local sales tax for the installation site and it was for mine, but with one weird twist for one line item;

Solar Panels - Taxed
Inverters & Balance of System - Taxed
Mounting Hardware - Not Taxed
Installation, Permitting and Other Fees - Not Taxed
Powerwalls - Taxed
Backup Gateway - Taxed
Powerwall Installation - Taxed
Powerwall+Solar Discount - Taxed (deducted from amount)

Labor isn't taxed in California, so that makes sense, but I would have expected that the "Mounting Hardware" would be taxed and it was omitted. If I add up the rest and multiply by my local tax rate of 9.000% it exactly equals the Taxes line item.

 

[holeydonut]

I should be based on the local sales tax for the installation site and it was for mine, but with one weird twist for one line item;

Solar Panels - Taxed
Inverters & Balance of System - Taxed
Mounting Hardware - Not Taxed
Installation, Permitting and Other Fees - Not Taxed
Powerwalls - Taxed
Backup Gateway - Taxed
Powerwall Installation - Taxed
Powerwall+Solar Discount - Taxed (deducted from amount)

Labor isn't taxed in California, so that makes sense, but I would have expected that the "Mounting Hardware" would be taxed and it was omitted. If I add up the rest and multiply by my local tax rate of 9.000% it exactly equals the Taxes line item.

I wonder if blade disconnects and main service panels are taxed...

 

[Redhill_qik]

I wonder if blade disconnects and main service panels are taxed...

I think these are included in "Inverter(s) & Balance of System" line item on the Tesla purchase agreement. Ultimately it should be between the FTB and Tesla (or in your case Sunrun I think) if they bought items to resell and failed to charge the buyer for the tax.

 

[SaveOurPlanet]

I should be based on the local sales tax for the installation site and it was for mine, but with one weird twist for one line item;

Solar Panels - Taxed
Inverters & Balance of System - Taxed
Mounting Hardware - Not Taxed
Installation, Permitting and Other Fees - Not Taxed
Powerwalls - Taxed
Backup Gateway - Taxed
Powerwall Installation - Taxed
Powerwall+Solar Discount - Taxed (deducted from amount)

Labor isn't taxed in California, so that makes sense, but I would have expected that the "Mounting Hardware" would be taxed and it was omitted. If I add up the rest and multiply by my local tax rate of 9.000% it exactly equals the Taxes line item.

I'm glad I do not live in your city, I'm in San Mateo County and my solar roof + 2 PWs come to 50,840.00 with taxes of 1,121.15. If I were taxed at your rate I would have to pay thousands more.

 

[Redhill_qik]

I'm glad I do not live in your city, I'm in San Mateo County and my solar roof + 2 PWs come to 50,840.00 with taxes of 1,121.15. If I were taxed at your rate I would have to pay thousands more.

San Mateo county has a 9.25% tax rate, you must have a lot of labor probably due to it being a solar roof. My 8.16kw panels and 2 PWs was $19k less before tax. I did pay more in tax $1640.