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Will car sales tax change if you purchase AP after you buy the car?

Discussion in 'Model 3' started by omar, Jul 31, 2017.

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  1. omar

    omar Member

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    Just a quick thought, does anyone know if you pay sales tax on the vehicle purchase price plus the options or just the vehicle's price?

    If so, based on the configurator screen shots it looks like Tesla wont charge you a premium if you activate auto pilot after your car is shipped. That would bring the total cost of the car down when purchasing. Then you pay tax on that amount and upgrade to AP later. Right?

    So essentially you'd save 7.5% on the $5000 AP option (7.5% for CA) = totals about $375. More if you ourchase the go fund me $3000 AP option on top of that. Just a thought...

    Does anyone with a model S have any experience with retroactively buying AP and if there were taxes included?

    Thanks,
     
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  2. Lloyd

    Lloyd Well-Known Member

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    Sales tax is due the same for after the sale sales as well.
     
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  3. kort677

    kort677 Active Member

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    upon a purchase of a car, a regardless of any tax rebates, you pay sales tax based on the cost of the vehicle, regardless of how it is optioned, the rebates are granted subsequent to your purchase and are not part of the price paid regardless of what the purchase price is or sales taxes owed
     
  4. brianman

    brianman Burrito Founder

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    I don't think that's necessarily true.

    For example, it may actually be worse (in some states like Washington) to pay for the feature later.
     
  5. MIT_S60

    MIT_S60 Member

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    This is state-dependent. In California, we have to pay sales tax on software unlocks later on, so it doesn't make a difference. However, Tesla currently charges an additional $1000 if you enable EAP or FSP post delivery.
     
  6. jelloslug

    jelloslug Active Member

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    It was way worse for me on my Model S. Sales tax on cars is capped at $300 in South Carolina but the sales tax for the AP upgrade was a full retail sales tax which was 6%. If I would have bought it with the car I would have not paid any extra tax on the option at all.
     
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  7. kort677

    kort677 Active Member

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    please explain, what is after the sale? I don't think tesla plays the after sale add on game.
     
  8. Lloyd

    Lloyd Well-Known Member

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    After you buy the car as the OP asserted above.
     
  9. brianman

    brianman Burrito Founder

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    ... for Model S and X. I haven't heard them officially comment on this w/r/t Model 3 yet.
     
  10. kort677

    kort677 Active Member

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    I'm confused, why would any taxes be due prior to buying the car?
     
  11. moarpwr

    moarpwr Member

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    Depends on state but for me.

    NJ no sales tax on EVs

    If I want to upgrade the battery pack from 60 to 75. I need to pay sales tax on that upgrade.
     
    • Informative x 1
  12. rxlawdude

    rxlawdude Member

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    "In California, we have to pay sales tax on software unlocks later on, so it doesn't make a difference."

    If Tesla is collecting sales tax for the OTA update, it is violating California law. An OTA update is an electronic delivery. There is no tangible property to tax. Transactions not involving tangible personal property, such as the sale of services or the sale of intangible personal property, are not subject to the sales tax.
     
  13. K-MTG

    K-MTG Sunshade Captain of TMC

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    Does Tesla charge it though?
     
  14. Foxhound199

    Foxhound199 Member

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    Why on earth would that be the case? In WA, cars are taxed at a higher rate than everything else. Also, if it isn't part of the purchase price, your tabs will be lower.
     
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  15. zmarty

    zmarty Member

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    How higher? Isn't the sales tax around 10%?

    Edit: Do you mean that 0.3% extra tax?
     
  16. Foxhound199

    Foxhound199 Member

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    Yep, 0.3%.
     
  17. NoMoGasNeMo

    NoMoGasNeMo Member

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    I purchased a 70D in May of 2015 without the AP option in Southern California. In November of 2015 I took it to service center in Orange County and had AP function enabled and I paid $3,000 OTD. So I did not pay sales tax at time of purchase in May and also my registration fees were less since the value of the vehicle was lower.
     
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  18. gregincal

    gregincal Active Member

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    I always love the optimism of people. As far as I can see, the configurator doesn't say that it's possible to add it at all later, but you assume that means that you can and it won't cost extra.
     
  19. K-MTG

    K-MTG Sunshade Captain of TMC

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    anthony devecka on Twitter
     
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  20. gregincal

    gregincal Active Member

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