Unpaid Excise (Property) Taxes on Leased Teslas

[ATiboni]

In late February I discovered that I had failed to renew the registration of our leased Model 3 when the pre-existing registration expired in October of '21. When I attempted to renew it via the Massachusetts RMV website, I wasn't allowed to do so , with no explanation. After speaking with the RMV, I was told that the vehicle excise tax (our name for vehicle property tax) had not been paid for 2021 and that I could not renew the registration until it was paid. After a telephone call with the tax collector at the City of Northampton MA, I learned that the tax which was due in March of 2021, had indeed not been paid by Tesla Finance and that the debt was sent to an agency for collection. After a conversation with one of the agency's representatives I learned that if I were to pay the tax along with related fees and interest on-line, the RMV system would be updated the next day and I would be able to renew the registration then, which I did.

Disturbingly, the collection agency rep told me that my Tesla wasn't the only one where Tesla Finance had not paid the tax for 2021, and Northampton not the only city or town in Massachusetts referring Tesla Finance for collection. It would seem that they have a much bigger problem than just our Model 3. I'm sure the bond-holders who are secured by these leases would have an interest in this issue (no pun intended).

I had spoken with a rep at Tesla Finance in late February and forwarded all related receipts in an attempt to recover the $214.11 in late fees and interest that I paid on their behalf. In the interim, I have tried to follow-up via phone, which has become impossible, so after many attempts at contact with Tesla Finance I was able to email the Dedham, Mass delivery support group about my situation, and then got a reply from Tesla Finance the next day thanking me for my patience and telling me that they are working on it. That was 12 days ago with nothing since.

Has anyone had a similar experience and if so how did you rectify it? We love the car and I have been an on-and-off shareholder. The leasing experience has been sorely lacking due to this tax issue, however.

 

[Mr. Switch]

In late February I discovered that I had failed to renew the registration of our leased Model 3 when the pre-existing registration expired in October of '21. When I attempted to renew it via the Massachusetts RMV website, I wasn't allowed to do so , with no explanation. After speaking with the RMV, I was told that the vehicle excise tax (our name for vehicle property tax) had not been paid for 2021 and that I could not renew the registration until it was paid. After a telephone call with the tax collector at the City of Northampton MA, I learned that the tax which was due in March of 2021, had indeed not been paid by Tesla Finance and that the debt was sent to an agency for collection. After a conversation with one of the agency's representatives I learned that if I were to pay the tax along with related fees and interest on-line, the RMV system would be updated the next day and I would be able to renew the registration then, which I did.

Disturbingly, the collection agency rep told me that my Tesla wasn't the only one where Tesla Finance had not paid the tax for 2021, and Northampton not the only city or town in Massachusetts referring Tesla Finance for collection. It would seem that they have a much bigger problem than just our Model 3. I'm sure the bond-holders who are secured by these leases would have an interest in this issue (no pun intended).

I had spoken with a rep at Tesla Finance in late February and forwarded all related receipts in an attempt to recover the $214.11 in late fees and interest that I paid on their behalf. In the interim, I have tried to follow-up via phone, which has become impossible, so after many attempts at contact with Tesla Finance I was able to email the Dedham, Mass delivery support group about my situation, and then got a reply from Tesla Finance the next day thanking me for my patience and telling me that they are working on it. That was 12 days ago with nothing since.

Has anyone had a similar experience and if so how did you rectify it? We love the car and I have been an on-and-off shareholder. The leasing experience has been sorely lacking due to this tax issue, however.

Yes, I’m going through the exact same situation on my leased Tesla Y. Tesla has not paid both the 2021 and 2022 excise taxes to my town (Harwich, MA). I’ve been working to resolve this for many months, to no avail. Late charges are piling up on both bills. We have even gone to our local TV station (Ask Hank) - they were also unsuccessful. The Tesla corporate finance phone number is useless. I love the car, but will now look elsewhere when my lease is up in 2024.
Pete S.

 

[ATiboni]

Hopefully it will be resolved before you need to renew your registration; otherwise you’ll have to pay the tax, interest and late fees in order to do so. It may affect your ability to renew a driver’s license as well.

I have since been able to talk with someone at Tesla Finance’s Payment Resolution department. When I called 844-837-5285 I chose the option for having received a late payment notice hoping that they would actually talk with people who are delinquent in their payments (which we are not, BTW). There is an option to talk with a representative, and I was able to do so after only a couple of minutes on hold. I explained what was going on and the rep put me on hold so that she could talk with her supervisor. Ultimately, she had me forward to her my documentation of the transaction and promised that they would either credit my lease account or send a check for the late fees and interest by the weekend and that she’d follow-up when it happens. Today is Saturday and my lease account hasn’t been credited nor have I gotten any updates. I plan to follow-up soon.

This is really an amazing situation. It seems like a systemic failure on their part. Banks and finance companies have been doing this stuff for decades; the payment of these taxes by a leasing company is not a wheel in need of reinvention.

 

[Chuck754]

Same here. My ticket with the Tesla tax team has been opened for 6 weeks with no response from them. Second year this has happened. I'll never do business with them again.

 

[oopsandwicket]

Same here (Norwalk CT). The town administrator I spoke to on the phone said, "Tesla is the only lessor pulling this stunt." They haven't paid for over 60 cars, and owe over $65k for last year. I spoke with someone at Tesla who said they'd get back to me within 7 days. No word yet. Have any of you had success in getting this resolved? I need to go to the dump and I can't until Tesla figures this out.

 

[economom1102]

Same exact story, Town of Westwood MA. They let my registration go through but there is a lot of frustration at this company. I am also very angry they are depriving my town of excise tax revenue.
Just Tweeted at Tesla Finance

https://twitter.com/x/status/1630634984452005888

 

[stupatterson]

Same situation here ... had to go to AAA to find out that excise tax bill (for Hull) due in March 2022 was not paid as of April 2023 and that it had been given, with penalties, to a collection agency in December, probably hurting my credit rating, but who knows? Never received notice of unpaid tax from Tesla Leasing and all government notices of overdue taxes were, of course, sent to them. My guess is that over 1/3 of the $670 due is penalties, but I don't know for sure.

In any case, I've paid it online (with another 3% penalty for CC processing) so I can use my Model 3 thru the extended, lease-end date of late June, hoping that MA will now let me renew online. Like others, I'm reconsidering my order for a new Model 3 for this and several other reasons. Probably time to support the competitors/followers and support the growth of the industry, rather than one company.

 

[stupatterson]

Yes, I’m going through the exact same situation on my leased Tesla Y. Tesla has not paid both the 2021 and 2022 excise taxes to my town (Harwich, MA). I’ve been working to resolve this for many months, to no avail. Late charges are piling up on both bills. We have even gone to our local TV station (Ask Hank) - they were also unsuccessful. The Tesla corporate finance phone number is useless. I love the car, but will now look elsewhere when my lease is up in 2024.
Pete S.

In late February I discovered that I had failed to renew the registration of our leased Model 3 when the pre-existing registration expired in October of '21. When I attempted to renew it via the Massachusetts RMV website, I wasn't allowed to do so , with no explanation. After speaking with the RMV, I was told that the vehicle excise tax (our name for vehicle property tax) had not been paid for 2021 and that I could not renew the registration until it was paid. After a telephone call with the tax collector at the City of Northampton MA, I learned that the tax which was due in March of 2021, had indeed not been paid by Tesla Finance and that the debt was sent to an agency for collection. After a conversation with one of the agency's representatives I learned that if I were to pay the tax along with related fees and interest on-line, the RMV system would be updated the next day and I would be able to renew the registration then, which I did.

Disturbingly, the collection agency rep told me that my Tesla wasn't the only one where Tesla Finance had not paid the tax for 2021, and Northampton not the only city or town in Massachusetts referring Tesla Finance for collection. It would seem that they have a much bigger problem than just our Model 3. I'm sure the bond-holders who are secured by these leases would have an interest in this issue (no pun intended).

I had spoken with a rep at Tesla Finance in late February and forwarded all related receipts in an attempt to recover the $214.11 in late fees and interest that I paid on their behalf. In the interim, I have tried to follow-up via phone, which has become impossible, so after many attempts at contact with Tesla Finance I was able to email the Dedham, Mass delivery support group about my situation, and then got a reply from Tesla Finance the next day thanking me for my patience and telling me that they are working on it. That was 12 days ago with nothing since.

Has anyone had a similar experience and if so how did you rectify it? We love the car and I have been an on-and-off shareholder. The leasing experience has been sorely lacking due to this tax issue, however.

Just curious, did you ever recover your $214.11 in late fees and interest from Tesla? I doubt you did but thought I'd check before spending any time trying to do so myself! thanks

 

[Traycleigh]

In this same boat...a cop just stopped and told me my registration was expired..when I went to try to renew it online it says it cant be renewed. I'm assuming they didn't pay the excise tax. It's saturday, I have no idea what to do. I found the collection agency that i'm sure it went to but I don't have a bill number to pay online. UGH