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Tax on AP purchase?

Discussion in 'Model 3' started by rlb4, Mar 14, 2019.

  1. rlb4

    rlb4 Member

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    I am probably going to purchase AP for $2000 before Mon. It is charging me tax on the purchase. I am in NJ and there is no sales tax on EV purchases. I was not charged any tax when I bought the car in Oct. Has anyone in NJ purchased the $2000 AP and were you charged tax?
     
  2. run-the-joules

    run-the-joules Active Member

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    You didn't buy a car. You bought software. Welcome to the wonderful world of governments.
     
    • Like x 1
  3. rlb4

    rlb4 Member

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    But if I bought that same software when I purchased the car there would not have been tax on it?
     
  4. Evbwcaer

    Evbwcaer Member

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    What if you go online through a portal that makes Tesla think you are in a no sales tax state, or drive to a no sales tax state and purchase from there?
     
  5. Lunares

    Lunares Member

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    Correct. when you buy it as part of the car it's considered a car purchase and you are charged your state's appropriate vehicle tax. buying it aftermarket counts as a normal software purchase and you are charged your states sales tax. Unfortunately that's the way it is.

    Tesla knows which state your car is registered in and charges you that tax. Or it might be the state in which your credit card is registered in. Either way you can't just be in another state and buy it.
     
  6. notAnExpert

    notAnExpert Member

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    According to NJ’S New Rules for Software Sales Tax
    In New Jersey, tangible personal property is subject to sales tax. The state’s definition of tangible personal property includes prewritten computer software, regardless of whether the software is delivered to a customer via a disc or drive, or is electronically transmitted or downloaded. Thus, prewritten computer software is subject to sales tax.
     
  7. StellarRat

    StellarRat Member

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    I have my doubts about that one. If someone give me the money and account info and I bought it in a different state you think Tesla would still charge me the sales tax? What if I move to a different state AFTER I buy my car. How does Tesla magically track your registration state?
     
  8. Lunares

    Lunares Member

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    Well tesla registered my car for me so I assume they have that. But yea if I changed states it may not update unless I change my account address or the credit card zip used. So wouldn't surprise me if it is either that or you have to manually tell Tesla to update your location
     
  9. PoitNarf

    PoitNarf My dog's breath smells like dog food

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    I’m in NJ as well. If you purchased your 3 in 2018 like me then had you opted to get FSD with the car it would have been an extra $3000, or $4000 if upgrading after taking delivery. If you buy the FSD upgrade before Monday it will be $2000 + $132.50 NJ sales tax, which is still $867.50 cheaper than if you had ordered the 3 with FSD and not paid sales tax on it.

    This is no different than if you had the option of getting all weather floor mats with the car purchase or afterwards. Anything purchased after the initial car sale whether it be tangible like floor mats or intangible like software is not considered part of the car and is not NJ sales tax exempt.
     
  10. streetskooler

    streetskooler Member

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    I live in NJ and just bought AP for $2000 plus tax. In NJ EV cars are except from tax so I thought the transaction would be tax free too. It’s not like NJ already doesn’t take enough of my money
     
  11. PoitNarf

    PoitNarf My dog's breath smells like dog food

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    It would be nice wouldn’t it? Unfortunately it doesn’t work that way. If you were able to buy upgrades for your car tax free after the initial purchase where would it stop? Would we be able to get new tires tax free? Roof rack tax free? Ain’t gonna happen.
     
  12. rlb4

    rlb4 Member

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    Makes sense. It did state that taxes were charged based on the state the car was registered in.
     
  13. hlin07

    hlin07 Member

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    I just bought my SR+ with autopilot, it does not charge tax on the 3k autopilot because it's part of a car now. After the purchase, if I want to upgrade to FSD, then they'll charge tax on that. I don't see our *functional* government will approve such legislation in time or before the car becomes so old so only autopilot for me.
     
  14. Ludalicious

    Ludalicious Member

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    anyone else notice that the FSD on the model Y is back upto the full price already.
     
  15. NJRoadie

    NJRoadie New Member

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    Just upgraded my EAP to FSD - Paid 2K + Tax in NJ.
     
  16. rlb4

    rlb4 Member

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    Just purchased AP. $2000 + tax.
     

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