Texas Tax Due Date

[SCOOBY]

I had to pay a 5% late penalty when I went to pay my taxes. I thought I should warn others about this. Though Texas law is clear that the tax on a vehicle purchased in another state is due on the 20th working day after the date the vehicle is brought into Texas (Texas Transportation Code 152.041(d)), in practice the tax office policy is to only accept the date on the MPVA. I tried at both the state and county level to get this fixed, but without success. I promptly signed and returned the purchase agreement with cash payment. This turned out to be a mistake because the MPVA was dated well before my delivery date. I would suggest holding off on payment until you take delivery so as to avoid this problem.

 

[texex91]

I had to pay a 5% late penalty when I went to pay my taxes. I thought I should warn others about this. Though Texas law is clear that the tax on a vehicle purchased in another state is due on the 20th working day after the date the vehicle is brought into Texas (Texas Transportation Code 152.041(d)), in practice the tax office policy is to only accept the date on the MPVA. I tried at both the state and county level to get this fixed, but without success. I promptly signed and returned the purchase agreement with cash payment. This turned out to be a mistake because the MPVA was dated well before my delivery date. I would suggest holding off on payment until you take delivery so as to avoid this problem.

So what I'm hearing is you have 20 days once Tesla delivers car to Texas or to Service center or to individual (based upon date on MPVA--can you tell Tesla when to date that)?

5% hit is almost equal to the tax--that's significant!

 

[SCOOBY]

The law is the tax is due 20 working days after a Tesla is brought into Texas. The policy at the tax office is to use the date on the MPVA. Good luck trying to persuade them they are doing it wrong! I believe Teslas's current practice is to sign and date the MPVA as soon as you have signed the purchase agreement and paid. I do not know if they would date it later if you asked. The penalty is 5% of the tax due, not the vehicle price, so about $300.

 

[texex91]

I believe Teslas's current practice is to sign and date the MPVA as soon as you have signed the purchase agreement and paid. I do not know if they would date it later if you asked. The penalty is 5% of the tax due, not the vehicle price, so about $300.

Having not gone through the order process yet, I appreciate the info.

1) From the time you paid (i.e. car is finished and ready to be shipped), how long did it take to get it to Houston?
2) Good to know it's 3% of tax due :smile:

 

[SCOOBY]

1) From the time you paid (i.e. car is finished and ready to be shipped), how long did it take to get it to Houston?

About 2 weeks.

 

[jed-99aggie]

Ours was delivered back in Dec, back when the TX process was being refined given all of the dealer law noise.

At the time, payment had to be confirmed before the vehicle could be loaded to leave the factory. And that corresponded to the MVPA date. Even with that requirement and the associated transit time from the factory, I still had a good 2 weeks+ to pay the TX sales tax.

Bummer you had a rough time with the tax office.

This is just one more reason why our legislators need to get their hands out of the dealer lobby pockets and actually represent their constituents. Vehicle registration and sales tax collection would be resolved once they agree to let Tesla sell direct. If anyone reading this has Senator Dan Patrick (running for Lt Gov.) let him know your are not happy, as he is one of the most belligerent & blind supporters of Texas auto dealers (and sits on the Senate transport subcommittee).

 

[SCOOBY]

I would still have had time to pay the tax on time, but I went on a two week vacation right after I took delivery. This turned out to be a double bummer because (1) I was pining for my S for the whole trip, and (2) I was stung for $300 on my return.

This is just one more reason why our legislators need to get their hands out of the dealer lobby pockets and actually represent their constituents. Vehicle registration and sales tax collection would be resolved once they agree to let Tesla sell direct. If anyone reading this has Senator Dan Patrick (running for Lt Gov.) let him know your are not happy, as he is one of the most belligerent & blind supporters of Texas auto dealers (and sits on the Senate transport subcommittee).

Amen.

 

[texex91]

Ours was delivered back in Dec, back when the TX process was being refined given all of the dealer law noise.

At the time, payment had to be confirmed before the vehicle could be loaded to leave the factory. And that corresponded to the MVPA date. Even with that requirement and the associated transit time from the factory, I still had a good 2 weeks+ to pay the TX sales tax.

Bummer you had a rough time with the tax office.

This is just one more reason why our legislators need to get their hands out of the dealer lobby pockets and actually represent their constituents. Vehicle registration and sales tax collection would be resolved once they agree to let Tesla sell direct. If anyone reading this has Senator Dan Patrick (running for Lt Gov.) let him know your are not happy, as he is one of the most belligerent & blind supporters of Texas auto dealers (and sits on the Senate transport subcommittee).

It's not just the auto dealers lobby but also Oil & Gas. Texas is an Oil state (which is fine by me) but these silly auto dealers are cry babies.

 

[sublimaze1]

Ours was delivered back in Dec, back when the TX process was being refined given all of the dealer law noise.

At the time, payment had to be confirmed before the vehicle could be loaded to leave the factory. And that corresponded to the MVPA date. Even with that requirement and the associated transit time from the factory, I still had a good 2 weeks+ to pay the TX sales tax.

Bummer you had a rough time with the tax office.

This is just one more reason why our legislators need to get their hands out of the dealer lobby pockets and actually represent their constituents. Vehicle registration and sales tax collection would be resolved once they agree to let Tesla sell direct. If anyone reading this has Senator Dan Patrick (running for Lt Gov.) let him know your are not happy, as he is one of the most belligerent & blind supporters of Texas auto dealers (and sits on the Senate transport subcommittee).

You and I must have taken possession at about the same time - however, mine had a little twist of its own. I had sent money (including the taxes) to Fremont in one fed ex package, and when the fed ex package was en route was the day in November that Texas sent the legal injunction letter to Tesla stating they could not collect tax on behalf of the Lone Star state as the Lone Star state only recognized dealerships in this capacity and Tesla would be served litigation if they continued such practice.

Guess whose check got cashed nonetheless ....

So I had to figure out what to do now in getting the tax back so that I could repay it to texas. Thankfully, Tesla was very agreeable to work with me and I did not have to involve myself with some 21+ day penalty.

 

[kalikgod]

It's not just the auto dealers lobby but also Oil & Gas. Texas is an Oil state (which is fine by me) but these silly auto dealers are cry babies.

I would argue that Texas is an energy state. The Oil & Gas companies are much more worried about the price of the Gas part of their name right now. An increase in electricity demand, resulting in increased Natural Gas power generation, would not bother them one bit. It would actually hedge their investments against the unpredictable Middle East.

 

[jed-99aggie]

...however, mine had a little twist of its own. I had sent money (including the taxes) to Fremont in one fed ex package, and when the fed ex package was en route was the day in November that Texas sent the legal injunction letter to Tesla stating they could not collect tax on behalf of the Lone Star state...

Very true, I consider myself lucky to have missed not having to deal with your headache.

With some of the forum chatter about qualifying your Tesla for Texas sales tax exemption, I believe this would be the most influential factor in getting the legislature to wake up and change the dealer law. If the loophole in the sales tax law can be replicated for the majority of Texas Tesla buyers @~$5k a car, the state would soon take notice and find a way to address the matter.

 

[hcoon2000]

It's not just the auto dealers lobby but also Oil & Gas. Texas is an Oil state (which is fine by me) but these silly auto dealers are cry babies.

Please make no assumption Oil & Gas folks do not like Tesla. As a Texan I have been associated with the industry since high school. I love my Tesla and my job in the oil & gas industry. I liked the point Elon made out at the factory party in the fall of 2012. He said that Tesla is energy agnostic. Teslas use electrons produced by oil, natural gas, nuclear, solar and wind. When I drive my Tesla I know I am using the energy in its most efficient form regardless of the source of production.

I tried to testify in Austin but when the legislators saw how many of us showed up to testify they freaked out. It was clear the Texas Automobile Dealer Association had them in their pocket. Governor Perry said he would sign the bill to allow Tesla to sell in Texas if it hit his desk.

The issue with the auto dealers is an example of crony capitalism at its zenith. The purpose of the original franchise law was to protect dealers who had marketing contracts with manufacturers from being undersold in the dealer's market by direct sales from the manufacturer to the consumer. Clearly that is not the case here as Tesla is the only seller of their product. Therefore there is no one whose price they can undercut but their own by further innovation. Which will not happen if they are tied up in court spending precious development dollars defending their right to participate in the free market.

It was a hassle to pay the taxes for the car. I had to go back and forth to the bank and my insurance company to get the right documentation so I could have the privilege of paying the taxes, but fortunately I did it within the thirty day window of the manufacturer's certificate which was used to establish the date of the sale. Mine was sold on 12/19/12 but not delivered until 1/7/13. It was unnerving during that period because Tesla was not allowed to track the car for me without violating some law. It was truly frustrating and confusing and I give no government agency credit for facilitating the sale. Tesla was hamstrung by fear of litigation.

I think Gerald Ford said, "A government big enough to give you everything you want is a government big enough to take everything you have." This is a bigger issue that most understand. If we truly want our country to remain that place where innovations like Tesla are created and thrive we have to pay more attention to the shackles being placed on our liberties.

 

[texex91]

Please make no assumption Oil & Gas folks do not like Tesla.

.

I worked in Oil & Gas too--didn't say EVERYONE :smile:

 

[GasDoc]

I tried to testify in Austin but when the legislators saw how many of us showed up to testify they freaked out.

What did the legislators do? How did they "freak out"?

 

[TSLA Pilot]

I'm confused.

The docs for our CA Temp Registration state that it's good for 90 days.

I recently visited the Dallas Service Center and they confirmed that no registration is required in Texas until 90 days from delivery (and that was " . . . according to Tesla's attorneys.")

Thus, I was expecting to visit our local county tax office and give them that huge check (almost 7% of the value?) in September (just UNDER the 90 day limit) from our late June delivery.

Why is there a penalty?

Please expand on this as I just hate monetary/tax surprises of ANY kind.

Thanks.

 

[SCOOBY]

I'm confused.

The docs for our CA Temp Registration state that it's good for 90 days.

I recently visited the Dallas Service Center and they confirmed that no registration is required in Texas until 90 days from delivery (and that was " . . . according to Tesla's attorneys.")

Thus, I was expecting to visit our local county tax office and give them that huge check (almost 7% of the value?) in September (just UNDER the 90 day limit) from our late June delivery.

Why is there a penalty?

Please expand on this as I just hate monetary/tax surprises of ANY kind.

Thanks.

I'm sorry to be the bearer of bad news, but I'm fairly sure you are going to have to pay at least a penalty of 5% of the tax due. I would advise you to go to the tax office ASAP because the penalty goes up to 10% if the tax is more than 60 days late. Full details here:

http://www.window.state.tx.us/taxinfo/taxpubs/tx96_254.pdf

I did inform my delivery specialist in Houston about my experience. Tesla is a new company and trying to make the best of a mess the state created. Good luck!

 

[texex91]

I'm confused.

The docs for our CA Temp Registration state that it's good for 90 days.

I recently visited the Dallas Service Center and they confirmed that no registration is required in Texas until 90 days from delivery (and that was " . . . according to Tesla's attorneys.")

Thus, I was expecting to visit our local county tax office and give them that huge check (almost 7% of the value?) in September (just UNDER the 90 day limit) from our late June delivery.

Why is there a penalty?

Please expand on this as I just hate monetary/tax surprises of ANY kind.

Thanks.

Call your tax office to confirm. No way Texas lets you not pay taxes for 90 days.

 

[barbja]

The docs for our CA Temp Registration state that it's good for 90 days.

I recently visited the Dallas Service Center and they confirmed that no registration is required in Texas until 90 days from delivery (and that was " . . . according to Tesla's attorneys.")

Thus, I was expecting to visit our local county tax office and give them that huge check (almost 7% of the value?) in September (just UNDER the 90 day limit) from our late June delivery.

Why is there a penalty?

Please expand on this as I just hate monetary/tax surprises of ANY kind.

I was pretty sure that you only have 20 days. I confirmed that on pg ii-1 of the PDF version of the Motor Vehicle Tax Guidebook link in a previous post:

"If the seller is not a licensed dealer, the purchaser is responsible for titling and registering the vehicle, as well as paying the tax to the county TAC within 20 county working days of the purchase date. Active duty military have 60 county working days to title and register a vehicle. Tax is not due until that time."

That sounds very clear to me. I think if you wait 90 days, you may have a 10% problem.

 

[jerry33]

My MPVA was dated 2/16, car delivered 3/2, taxes paid 3/8. I didn't pay any penalty at 21 days (assumes the 16th counts as day 1). In fact, I think I got a discount.

 

[texex91]

In fact, I think I got a discount.

Meaning what?