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Sales tax is applied only to tangible goods. So in this case the FSD is sold as a package, HW + SW together, therefore it is taxed. Performance upgrade is SW only, so no tax.
Sales tax is applied only to tangible goods. So in this case the FSD is sold as a package, HW + SW together, therefore it is taxed. Performance upgrade is SW only, so no tax.
Usually, it depends on how the invoice is written. If it's itemized then not taxed (on some items.) If bundled then the whole thing is taxed together. I think the FSD HW is pre-installed on Tesla but not sold yet, until someone purchases the FSD. And the thing is sold as a bundle. If Tesla were to itemize them in the invoice like HW items, and SW items, then you'll only be taxed for the HW part. The problem is Tesla bundles them together, so you pay tax on the whole thing.
Sales tax is applied only to tangible goods. So in this case the FSD is sold as a package, HW + SW together, therefore it is taxed. Performance upgrade is SW only, so no tax.
I think the argument here is more that the HW is pre-installed, but inactive. Once you buy the upgrade, you activate the HW which is treated the same as buying it. To me that logic doesn't make much sense, but I am not a lawyer or tax expert...