Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register
  • The final cut of the 9th episode of the Tesla Motors Club Podcast, featuring Chad Schwitters, the former president of Plug In America, is now available. You can watch it now on YouTube or listen to it on all major podcast networks.

Solar panel sales tax for california

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!
 
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

Active Member
Supporting Member
Jun 27, 2020
3,104
2,454
East Bay NorCal
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...
 
  • Funny
Reactions: jjrandorin
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.
 
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.
 
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.
 

Products we're discussing on TMC...

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top