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Tribaltech

Member
Nov 14, 2016
207
193
Michigan
Just came here to post "F YEAH!!!!"

Michigan customers have been suffering immensely at the hands of corrupt government and dwindling customer service from Tesla. Today's ruling in favor of Tesla will allow Tesla to sell and service cars in Michigan and is going to be a huge deal for Michigan-based customers and for Tesla. Over the past couple of years since the launch of M3 Tesla's customer service for MI-based customers was rapidly declining.

This great bit of news should hopefully turn things around in the state of Michigan. Hopefully this leads to a rapid roll out of new service centers in the state of Michigan which are badly needed especially by customers who live up north and were expected to drive 5-6 hours one way to get their cars serviced in Toledo.

Let me know what you think. I just came here to post my excitement as soon as I heard the wonderful news!!
 
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Tam

Well-Known Member
Nov 25, 2012
9,746
8,895
Visalia, CA
Just came here to post "F YEAH!!!!"

Michigan customers have been suffering immensely at the hands of corrupt government and dwindling customer service from Tesla. Today's ruling in favor of Tesla will allow Tesla to sell and service cars in Michigan and is going to be a huge deal for Michigan-based customers and for Tesla. Over the past couple of years since the launch of M3 Tesla's customer service for MI-based customers was rapidly declining.

This great bit of news should hopefully turn things around in the state of Michigan. Hopefully this leads to a rapid roll out of new service centers in the state of Michigan which are badly needed especially by customers who live up north and were expected to drive 5-6 hours one way to get their cars serviced in Toledo.

Let me know what you think. I just came here to post my excitement as soon as I heard the wonderful news!!

Congratulations!

The official announcement will be out soon.

The biggest win is Service Center! I think it's fine to buy from a neighboring state but without in-state Service Centers it's a big burden for owners to get serviced. Now, that is approved, that's a big relief for current and future owners.

The sales settlement is kind of weird. It's not that bad the Tesla can create a "subsidiary" to do that but the weird thing is: The brand new car has to have an out-of-state title!

Physically, an owner doesn't have to go out of the state to conduct the sales. It could be done in a Michigan store. It is then physically delivered to Michigan.

However, I guess the paperwork would prove to Michigan dealers that it's an out-of-state purchase so there's nothing to worry about because officially, there will be zero new Tesla title sales in Michigan: just new title transfers :)

Owners then just need to bring that out-of-state title to transfer it to Michigan.

It sounds like a good settlement for both sides.
 
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mongo

Well-Known Member
May 3, 2017
13,825
44,411
Michigan
So how does this affect sales tax? Will MI residents have to pay OH sales tax when purchased and titled then when they move it pay sales tax again?

We'll have to wait to see if any details of that change. Currently, if you buy through Ohio, Ohio gets the sales tax. If you buy in IL, Michigan gets the sales tax. If you pick up at Fremont, you pay full CA sales tax to CA, and MI gets none.

So no double sales tax. I'd sort of expect MI would craft the deal to include running the initial sale through IL or another tax remitting state.
 
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Tribaltech

Member
Nov 14, 2016
207
193
Michigan
Michigan has mobile rangers living and working here for years now. There has been no problems getting mobile service to come out.
Ummm no. While they supposedly have rangers, servicing of any kind in Michigan at least in my experience, has been awful. For every little to big thing they’ve been asking people to drive down to Toledo and wasting upwards of 4 hours in a day doing that was making Tesla ownership quite painful in this state. In the past year they’ve not been very open to sending out rangers nor have suggested software fixes for little things such as auto headlight issues etc.
 
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When I was selling cars here in Ohio, we would not collect Michigan sales tax. That was the owners job to pay when they went to the DMV in Michigan to get the registration. Certain states we reciprocate with and will send the tax money to that state, Michigan wasnt one though. There was never a case where you paid Ohio tax and Michigan tax on the same car.

If you were financing and wanted to include tax with that, we would calculate what the tax amount should be and cut a check back to take with you to the DMV.

I am not sure how it will work with Tesla but thats how it worked at the typical car dealership.
 
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mongo

Well-Known Member
May 3, 2017
13,825
44,411
Michigan
When I was selling cars here in Ohio, we would not collect Michigan sales tax. That was the owners job to pay when they went to the DMV in Michigan to get the registration. Certain states we reciprocate with and will send the tax money to that state, Michigan wasnt one though. There was never a case where you paid Ohio tax and Michigan tax on the same car.

If you were financing and wanted to include tax with that, we would calculate what the tax amount should be and cut a check back to take with you to the DMV.

I am not sure how it will work with Tesla but thats how it worked at the typical car dealership.

Right, you collect the 6% tax which went to OH, and MI got nothing (but at least recognized that you had paid the 6% and didn't double dip).

Ohio Department of Taxation > sales_and_use > information_releases > st2007_04archive
 

mongo

Well-Known Member
May 3, 2017
13,825
44,411
Michigan
Ruling attached
Repair facility needs to be non directly owned by Tesla, but can be a subsidiary, staffed by Tesla employees.
Legal title (sales) must occur outside of Michigan.
No requirement for prefered state for sales tax, this is purely an interpretation of the current law and how the executive branch will enforce it.
 

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  • gov.uscourts.miwd.85607.267.0.pdf
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mongo

Well-Known Member
May 3, 2017
13,825
44,411
Michigan
Key clarification which is different that the former "can't talk about sales/ prices/ ordering" restriction:
Permissible activities at such a gallery include (but are not limited to) conducting demonstration drives; discussing prices, service, financing, leasing, and trade-ins with potential customers; helping potential customers configure a vehicle; facilitating ordering and purchase of a vehicle for which legal title transfers out-of-state; and facilitating customer transaction paperwork for a sale for which legal title transfers out-of-state;

This agreement allows all other aspects (prep, inspection, delivery, service) to occur in Michigan. Sign the paperwork, send it to Toledo, they process and send it back, drive off with your car to register it. Doesn't impact buyer at all vs standard dealership other that dealing with Sec Of State directly.
 

D.E.

Uncorked
Oct 12, 2016
773
1,043
Ann Arbor, MI
So the car needs to be titled out of state initially?
How does that work, will Ohio title a car and put a Michigan home address on the Ohio title?

Every other time I’ve had a car titled, I had to have an address in the state in which the car was to be titled.
 
So the car needs to be titled out of state initially?
How does that work, will Ohio title a car and put a Michigan home address on the Ohio title?

Every other time I’ve had a car titled, I had to have an address in the state in which the car was to be titled.
When I bought my P85 in March 2014 in Texas, the car arrived with a temporary California “plate” (a rear window sticker) and had received its required Texas vehicle inspection sticker. Texas Fedexed the sales paperwork separately after I made final payment and the paperwork was finalized at the Service Center where I picked it up.

I drove it on the temporary plate until had the time to go to the DMV office to pay Texas sales tax and registration fees, walking out with my new Texas plates. I took them back over to the Service Center to install because I wanted them to drill the necessary holes in the bubble to attach the front plate...

All things considered, the “out-of-state title” thing was a minor annoyance at worst.
 
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