In MA I paid tax on the price of the car before state and federal incentives. Think about it this way, in 2023 the incentives would’ve been collected after the fact and full sales tax on the transaction would’ve been collected at time of purchase.
I understand, but in 2024, they significantly changed the rules/law to allow/encourage you to "transfer" your EV credit to the dealer at purchase. I would argue that an up front EV payment credit is quite different from an after the fact rebate of full purchase price.....
.Once you agree to execute that $4000 to dealer "transfer" the dealer has "sold" part of car to the government, and I pay, whatever is left over. Government doesn't charge tax on other cash benefits... but again.. who really knows...
Does anyone pay state tax on the $7500 cash they get back from the Feds as "income" , when they receive the tax credit check?
It is an "after the fact" rebate on the selling price, when that rebate moves to the "time of purchase" it is quite different, but of course we shall see.
I would also not be surprised if different states interpret it differently... THANK YOU for your reply.. I will contact some of the local "expert" notaries.... Note also that the dealer south of me was selling lots and lots of used Tesla's and described a long learning curve with back and forth, and he specifically insisted that 'my state" PA, applied sales tax on the price AFTER the rebate, and that dealer was completing 100% of the state registration for PA buyers coming down to VA to purchase....while the other dealer is a used EV rookie, who has only sold about 8 used EV's that had the tax credit applied.
My current solution is to buy the car, and not allow the dealer to collect the state tax, and work with local notaries who have state contacts to clarify what "price" is the sales price for state taxes.
Thanks again for your reply.. I will update what I learn one way or the other.