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Texas Sales and Sales taxes

Discussion in 'Texas' started by spc, Mar 14, 2015.

  1. spc

    spc Member

    Joined:
    Jan 28, 2015
    Messages:
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    Location:
    Edinburg, TX
    I am trying to get ready for the big day. (grin)
    I have already contacted my reps and asked to support SB 639 by Kelly Hancock and HB 1653 by Eddie Rodriguez. hope never dies....

    I found some old thread about sales taxes exemption qualifications in Texas but they are from 2013. I am sure we have more recent news.

    Has anyone found a good way to get this exemption?

    As a refresher TAX CODE CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES
    Sec. 152.090. CERTAIN HYDROGEN-POWERED MOTOR VEHICLES. (a) In this section, "hydrogen-powered motor vehicle" means
    a vehicle that meets the Phase II standards established by the California Air Resources Board as of September 1, 2007,
    for an ultra low-emission vehicle II or stricter Phase II emission standards established by that board and:

    (1) is hydrogen power capable and has a fuel economy rating of at least 45 miles per gallon; or

    (2) is fully hydrogen-powered.

    (b) The taxes imposed by this chapter do not apply to the sale or use of a hydrogen-powered motor vehicle.


    Alternative Fuels Data Center: Hydrogen Basics

    Hydrogen as an Alternative Fuel

    Hydrogen is considered an alternative fuel under the Energy Policy Act of 1992. ( Alternative Fuels Data Center ) The interest in hydrogen as an alternative transportation fuel stems from its ability to power fuel cells in zero-emission electric vehicles.

    How about an official statement from Tesla?

    (side note: we all buy on the web from out of state and pay no taxes, I had to order on the web and the car is shipped like any other product we buy) dont think it will hold much water but... :)
     
  2. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    1. Cars must be purchased through a dealer to get those credits.
    2. You pay Texas sales tax when you pick up your license plates.
    3. Tesla has an official statement about hydrogen vehicles: It's dumb.
     
  3. dsm363

    dsm363 Roadster + Sig Model S

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    There is no way to get this exemption. I tried in the past.
     
  4. Chris TX

    Chris TX Active Member

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    From what I remember (also did a ton of research on this before I paid my taxes) that it didn't say anything about being purchased through a Texas dealership. The $2500 TERP refund does, though.

    There are two ways to show the Model S can be powered by hydrogen:
    1. Hydrogen fuel cell that is connected to an EVSE to charge the car.
    2. A hydrogen ICE generator that's got an EVSE plugged into it to charge the car.

    The second one would be the easiest (and cheapest).
    -Just get a natural gas powered generator and put an additional regulator in front of the NG regulator.
    -Adjust the pressure until it runs smoothly.
    -Take it to the tax office and claim the exemption.
    -If they want proof, just pop the trunk, fire it up, and plug in the EVSE. Show them it's charging on the screen.

    If I had more time, this is what I would have done.
     
  5. Beryl

    Beryl Member

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    You sound like you have a handle on this. Can you elaborate on the emboldened?

    I have a Generac whole house automatic natural gas generator and wondering if I can use it to my advantage to get the tax break on my Model X. (I'm guessing a significant number of Texans have these generators operational.)
    Is this something an electrician would understand? If so, just need to know exactly what to ask them to do. There is an additional plug on the generator that can be used to share power with my neighbors. Maybe that is what I need to use on my Tesla. (How?) I have several months to get this figured out.
     
  6. Chris TX

    Chris TX Active Member

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    #6 Chris TX, Mar 22, 2015
    Last edited: Mar 22, 2015
    If you've already got a natural gas generator, you would need to plumb an additional regulator for hydrogen in front of the NG regulator. That hydrogen regulator would then be connected to a hydrogen gas cylinder. The goal is to find out what H2 setting makes the genset run rich (starts to bog) and dial it back a little bit for smoother running. Once it's running, connect your EVSE up to it. You don't even have to use the highest amp setting to show it's being recharged by hydrogen. Chances are an electrician won't work on this. You might find a plumber, or just do it yourself. The trick is to find the correct fittings. It might take a trip or three to Home Depot. ;)

    If you lived closer, I'd happily come over and get it running.

    EDIT: Doing a little bit of research yields hydrogen gas regulators are the same as methane. Methane IS natural gas! It looks like you wouldn't need an additional regulator for this experiment in sales tax avoidance! Check around to see where you can rent a hydrogen cylinder from. Find out what connection it requires, then see what your genset needs. A 6-10ft flexible hose should be enough, too.
     
  7. Beryl

    Beryl Member

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    Thanks so much for this. I will contact my generator installer and see if they can help get this done during one of their semiannual maintenance trips.

    Cutting/Pasting this entire thread to Evernote.
     
  8. Chris TX

    Chris TX Active Member

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    I wouldn't say anything about the car to them. Just say "I want the option to connect a hydrogen cylinder and run it off that." I could see a valve put in that allows you to switch between NG and H2.
     
  9. Danal

    Danal electricmotorglider.com

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    #9 Danal, Mar 22, 2015
    Last edited: Mar 22, 2015
    Same law you quoted, different sections:

    SUBCHAPTER B. IMPOSITION OF TAX
    Sec. 152.021. RETAIL SALES TAX. (a) A tax is imposed on every retail sale of every motor vehicle sold in this state. Except as provided by this chapter, the tax is an obligation of and shall be paid by the purchaser of the motor vehicle.
    (b) The tax rate is 6-1/4 percent of the total consideration.



    Sec. 152.022. TAX ON MOTOR VEHICLE PURCHASED OUTSIDE THIS STATE. (a) A use tax is imposed on a motor vehicle purchased at retail sale outside this state and used on the public highways of this state by a Texas resident or other person who is domiciled or doing business in this state.
    (b) The tax rate is 6-1/4 percent of the total consideration.
     

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