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Tax man got his share

Discussion in 'Model S: Ordering, Production, Delivery' started by Patrick W, May 10, 2015.

  1. Patrick W

    Patrick W Member

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    Being that I live in Utah where selling Teslas is currently against the law I had to pay Tesla for the car and then go pay the Utah DMV for taxes and registration.

    So after taking delivery of the car last week I trooped to DMV and paid for taxes and registration. Not a small amount.

    But a funny thing happened when I got home.

    I'm retired Air Force (my license plate reads "MSGT AF") and while stationed in Germany in the early 70s I purchased a brand new Mercedes 220D (still have it). Got to pick it up at the factory. Fun story there, especially the near crash pulling out of the factory but I digress.

    So when I got home after paying the Tesla's taxes I pulled out my paperwork file on the Mercedes and discovered I had paid more for the Tesla's taxes than I paid for the Mercedes. A lot more.
     
  2. Cyclone

    Cyclone Active Member

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    First order of business, thank you Patrick for your service!

    Second order of business, just imagine what it will be like if you keep the Tesla for 40 years and then buy another new car. Will you have a similar sticker shock when comparing notes?
     
  3. Canuck

    Canuck Active Member

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    If you bought the Mercedes in the 70's and paid more in taxes, I assume you mean by percentage rather than amount? What were the percentages for the Mercedes and the Tesla?

    In BC, I had to pay 15% tax. My car was about $100k so I paid $15k in taxes. Is there anywhere in Canada/USA that pays higher taxes on vehicles? We have a "luxury tax" that increases our PST (Provincial Sales Tax) from 7 to 10% on luxury vehicles, plus 5% GST (federal Goods & Services Tax).
     
  4. Cyclone

    Cyclone Active Member

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    Ouch. NC only charges 3%, but then we also pay an annual "personal property tax" based on the assessed value. I anticipate that my entire "fuel savings" is going to be wiped out.
     
  5. mmccord

    mmccord Member

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    Paid >8K in taxes to NY state for mine. Thought about moving to NJ for the year as I could have paid for an apartment for the whole year and come out ahead, but tax fraud is not my thing.
     
  6. Patrick W

    Patrick W Member

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    That's not likely. In 40 years I'll be 106. :)

    - - - Updated - - -

    Not quite sure what you're asking but for specifics the Mercedes' bill of sale shows 15.855,00 DM. That worked out to 4,878.46 USD. Taxes and registration on my model S was a little over 1,100 USD more that that.

    Dare I mention here that I remain a fan of Mercedes? That's to say the way the old ones looked (love the pagoda tops). Not a fan of the way the new ones look. Of course technology in the Tesla is light years ahead of other vehicles today and that's what sold me on Tesla.

    But I still take the 220 out every now and then just so she doesn't get jealous. :)
     
  7. beeeerock

    beeeerock Active Member

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    The 220 is still a beautiful car and one that a true Mercedes aficionado would say still drives as nice or better than many current 'modern' cars. Absolutely nothing wrong with appreciating the beauty that once was!!! :biggrin:

    If I had the garage space, I would own more cars than I could possibly justify... not to drive regularly, but to appreciate ALL the time. I'd happily include a 220 in my stable!

    Probably good that you do drive her once in a while... they can get spiteful and piddle oil or hydraulic fluid on the floor out of spite... my Alfa is trying to teach me a lesson right now, from the clutch slave cylinder... :redface:
     
  8. Cyclone

    Cyclone Active Member

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    Call me an optimist then! :)
     
  9. No2DinosaurFuel

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    It is not tax fraud if you did pay for the apt in NJ. I would say what you are doing is prefectly legal. Is it efficient? In the sense you just held up an apt space from someone who could use it? No it is not efficient, but what you plan to do is perfectly legal. I say if you come out ahead, i would do it. But keep in mind the hassle of maintaining the space and all the paper work and such. Remember breaking the law is illegal, bending it to your advantage is not.
     
  10. JohnQ

    JohnQ Active Member

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    Technically he'd have to reside in the apartment, not just rent it.
     
  11. No2DinosaurFuel

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    Right just be there a few months out of the year as vacation. The only major hassle i see is having your important mail sent there. These can be ised as proof of residency. Like i said, it is a hassle but you have to weigh the cost of bending the rules vs what you save.
     
  12. mmccord

    mmccord Member

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    Yes, this was really the issue. I work in NJ so it would be a no-brainer if I didn't have a wife and three kids living in NY. In the end, the tax man got his share and I get to spend the year with my family. Small price to pay..
     
  13. Ugliest1

    Ugliest1 S85: "Sparky"

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    Back to the BC 15% tax just so I can complain :), I still remember the fanfare when the government added it to luxury vehicles -- it was all about taxing carbon and "big SUVs". Oh the irony. :-(
     
  14. Drucifer

    Drucifer Active Member

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    #14 Drucifer, May 11, 2015
    Last edited: May 11, 2015
    I had a Mercedes 240D when I was in the Army, though I got it used - it was a 13 year old car when I got it. Now I am getting Model S.

    I went Mercedes 240D - Acura Legend - Saab 9-3 Convertible - Chevy Volt - Model S in my adult life. I have to wonder how many Model S owners came from where and why.

    I am about technology and aviation.

    But over the weekend I was talking to a P85+ owner who came from a BMW M5 - clearly performance over everything for him. I am sure the back stories of owners are pretty interesting.
     
  15. wycolo

    wycolo Active Member

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    As I entered the County Motor Vehicle Office a clerk shouted across the room that effective July 2015 each EV will have to cough up $50- annual ROAD USE TAX. Such excitement!! She no doubt had been planning this ambush for weeks. Still, for me, cheap thrills, considering all the fat checks I'd handed her over the years for my Teslas.
    --
     
  16. HankLloydRight

    HankLloydRight Fluxing

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    See:
    What did you drive before your Tesla?

    I still have my BMW M5 and its still an awesome car to drive (once in a while).
     
  17. travwill

    travwill Member

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    Yeah, stinks as here in Chicago it is a high 9.25% tax. Definitely buying. Crazy thing here is that if you lease, there is another 8% use tax just to "use the car" in the city on top of that, totally 17.25% taxes!
     
  18. Rockster

    Rockster Active Member

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    #18 Rockster, May 11, 2015
    Last edited: May 11, 2015
    Yikes! And I thought the one-time 6.25% check I wrote to the Texas comptroller was painful.
     
  19. Shawn Snider

    Shawn Snider Member

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    ^--- I've seen so many posts about Tax and or Insurance rates that relate to this point exactly, I WISH I could only pay $800/yr for Insurance! At that rate I'll pay my year in advance!

    Here in BC it's steep! Like Canuck said, 15% Tax, due at signing + Insurance (I was quoted, for my experience level, ~$210/mth for fully covered)

    I'm busy shoveling money for my down-payment, tax, insurance, air brush paint job and XPEL yada yada treatment.

    (Sometimes I open up the US Model S Design Studio just to dream about paying 'that' much for the Model S, then I snap back to reality where I pay $15K+ more for the same thing, only with red seat belt clips....... lol, but **** it, lol I still love Canada, even if Stephen Harper's at the helm...)
     
  20. HankLloydRight

    HankLloydRight Fluxing

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    Yeah, but you have much better health care up there. (Not a political statement)
     

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