When and how to get the $5000 refund?

[Knightshade]

when you return a purchase for refund to a merchant,
the merchant refunds the tax on the spot, then monthly
or quarterly the merchant pays state gross adjusted totals.

Except you aren't returning a purchase.

You still get to keep the car after all.

so analogies to "returns" really don't make much sense in this example.


A nearer (but still not ideal) comparison might be the price protection benefit some credit card companies offer. If you buy something for $100, plus say $5 tax (just to use easy numbers) it's $105 out of your pocket- $100 for the item, $5 for the tax.

Then you find that item advertised say 45 days later for $90.

If the credit card you used for the purchase offers price protection they will refund you the $10 difference.

But not the tax on that $10 difference.

That tax went to the government and is staying there- the actual "purchase" price, as far as the government is concerned, didn't change, despite you getting some money back.

 

[adhoc]

Except you aren't returning a purchase.

You still get to keep the car after all.

so analogies to "returns" really don't make much sense in this example.


A nearer (but still not ideal) comparison might be the price protection benefit some credit card companies offer. If you buy something for $100, plus say $5 tax (just to use easy numbers) it's $105 out of your pocket- $100 for the item, $5 for the tax.

Then you find that item advertised say 45 days later for $90.

If the credit card you used for the purchase offers price protection they will refund you the $10 difference.

But not the tax on that $10 difference.

That tax went to the government and is staying there- the actual "purchase" price, as far as the government is concerned, didn't change, despite you getting some money back.

sorry, the CEO said refund, as did my email?
the previous refund for price change of FSD
did include the associated sales tax!

 

[adhoc]

Unless the merchant sends all of the money to the state. Then it is the state that is benefiting.

I’m glad you see someone is benefiting on a refunded sales amount.
we don’t know whom that is, either tesla or the state, however we do
know tha companies pay sales tax on aggregate sales totals, and it’s
merely an accounting procedure to add sales minus refunds,
just as if you’d return a jacket bought from tesla.

 

[MP3Mike]

I’m glad you see someone is benefiting on a refunded sales amount.
we don’t know whom that is, either tesla or the state, however we do
know tha companies pay sales tax on aggregate sales totals, and it’s
merely an accounting procedure to add sales minus refunds,
just as if you’d return a jacket bought from tesla.

Well for the company I worked for we just remit any money collected as "sales tax" to the state. There was no looking at sales amounts or refunds directly.

 

[adhoc]

Well for the company I worked for we just remit any money collected as "sales tax" to the state. There was no looking at sales amounts or refunds directly.

I suppose a company could make individual transactions for each purchase or refund,
do you really think tesla writes 7,000 model 3 tax payments per week? or do you think
they group them together n add it up? what do they do when they make a refund + sales
tax for that jacket you returned, ask the state to write them a check? what about a FSD
refund + sales tax? see where this is going???

isnt’t oregon a 0% sales tax state? = no dog in this fight?

 

[MP3Mike]

I suppose a company could make individual transactions for each purchase or refund,
do you really think tesla writes 7,000 model 3 tax payments per week? or do you think
they group them together n add it up? what do they do when they make a refund + sales
tax for that jacket you returned, ask the state to write them a check? what about a FSD
refund + sales tax? see where this is going???

isnt’t oregon a 0% sales tax state? = no dog in this fight?

We remitted the payments once a month. We never had a month that was a net negative. But the tax rate/amount was calculated on each individual transaction.

While I am in Oregon we had locations in Washington...

 

[adhoc]

We remitted the payments once a month. We never had a month that was a net negative. But the tax rate/amount was calculated on each individual transaction.

While I am in Oregon we had locations in Washington...

if I hear what your saying, for your company to issues a refund and sales tax
refund was first to rent to your customer, then ledger the refund of sales tax
went into the gross monthly amount owed to state?

I believe this would be the method tesla used for FSD refunds + sales tax refunds.

 

[MP3Mike]

if I hear what your saying, for your company to issues a refund and sales tax
refund was first to rent to your customer, then ledger the refund of sales tax
went into the gross monthly amount owed to state?

I believe this would be the method tesla used for FSD refunds + sales tax refunds.

When a refund was issued both the correction to the tax amount was calculated and included as a part of the transaction. If someone just opened the till and refund the customer $100 in cash for their transaction without running it through the normal system we still sent the tax, that we actually didn't collect from the customer, to the state. (And yes this did actually happen on occasion.)

What we don't know is how Tesla is handling this. They may just write a $5k check and as such would not be adjusting the MVPA or the tax transaction, so the state would still get the full amount. If they adjust the MVPA they would have to get the loan holder involved, and might have to refund all of the money to the bank instead of the customer. (The bank requires $x down payment and doesn't allow a cash-out.)

Take an example: P3D+ buyer gets his car and has gap insurance. He gets the $5k refund from Tesla, the car gets totaled, and his gap insurance pays off the loan. He is now up to $12,500 ahead. (The $5k from Tesla where the loan didn't get adjusted and the $7,500 federal tax credit that he still qualifies for.)

 

[adaptabl]

The refund should be like a rebate. The tax is calculated before the rebate. No tax refund on the rebate.

 

[adhoc]

When a refund was issued both the correction to the tax amount was calculated and included as a part of the transaction. If someone just opened the till and refund the customer $100 in cash for their transaction without running it through the normal system we still sent the tax, that we actually didn't collect from the customer, to the state. (And yes this did actually happen on occasion.)

What we don't know is how Tesla is handling this. They may just write a $5k check and as such would not be adjusting the MVPA or the tax transaction, so the state would still get the full amount. If they adjust the MVPA they would have to get the loan holder involved, and might have to refund all of the money to the bank instead of the customer. (The bank requires $x down payment and doesn't allow a cash-out.)

Take an example: P3D+ buyer gets his car and has gap insurance. He gets the $5k refund from Tesla, the car gets totaled, and his gap insurance pays off the loan. He is now up to $12,500 ahead. (The $5k from Tesla where the loan didn't get adjusted and the $7,500 federal tax credit that he still qualifies for.)

I really think your over complicating this transaction,
and for sure, tesla has already paved the road
by refunding the $$$ + sales tax for overcharging FSD!

I'm fairly sure they didn't complicate the process by opening the MVPA...
and the example of what happens if... further complicates the view,
as the FED credit would still apply regardless of refund of sale tax?

I'm not sure why this is being viewed differently than the refund of FSD?

 

[MP3Mike]

I'm not sure why this is being viewed differently than the refund of FSD?

Because it is different. For FSD the person was overcharged, so they paid too much for both FSD and in tax. In this case they paid exactly correctly and now Elon is gifting them a $5k rebate.

 

[Mikey122687]

There is no tax refund, I asked and they said no.

 

[S4WRXTTCS]

Google just lowered the price of my one month old Pixel 3XL, where do I apply for the refund on that!

We had a secret refund weapon called Fred.

Apparently no Fred was on your team.

 

[SD_Engnr]

There is no tax refund, I asked and they said no.

View attachment 358677

I wonder what their reasoning is for this? If they have no problem charging tax when you pay for EAP after taking the car home, how can they not refund the tax paid on the $5k of goods?

 

[YevgeniyM]

Got a new response saying the refund was approved and check will go out early next week. Looks like things are moving

 

[thewishmaster]

One more data point: confirmed my mailing address this morning and they promised a check in ~8 weeks

 

[kbecks13]

Got a new response saying the refund was approved and check will go out early next week. Looks like things are moving

Did you use the "Escalate for Executive Review" button? Based on the signature on the response i'm going to guess yes?

 

[YevgeniyM]

Did you use the "Escalate for Executive Review" button? Based on the signature on the response i'm going to guess yes?

Yes, correct, that being said I sent it both ways as well as replied to the initial email confirming my refund from 4 weeks ago. I am not sure what they responded to.

 

[kbecks13]

Yes, correct, that being said I sent it both ways as well as replied to the initial email confirming my refund from 4 weeks ago. I am not sure what they responded to.

Wow i've sent 3 emails and called 4 times and still can't get a response

 

[YevgeniyM]

Wow i've sent 3 emails and called 4 times and still can't get a response

Maybe they just don’t want to talk to you