CA Sales Tax For Factory Delivery

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#1
I feel like we need to start talking about this again, and its implications for those who choose to pickup their Model 3 at the factory in Fremont instead of their home state.

There was legislation proposed last year in CA that would exempt out-of-state car buyers from CA sales tax. Unfortunately the bill died and never even had a chance. Its too bad because this would really promote tourism in CA and allow the wave of new Tesla owners to see the "Alien Dreadnought" that has produced their cars.

Most states I think will give you credit for what you have already paid to CA in sales tax on a new vehicle. But the states that don't have sales tax like Oregon, or states like Washington with a sales tax exemption on the first $32K, wouldn't be able to take advantage.

Maybe we can get this conversation going again, and maybe poke Tesla (or Tweet Elon) about this and see if any progress is being made on this front.
 

danzgator

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#2
I feel like we need to start talking about this again, and its implications for those who choose to pickup their Model 3 at the factory in Fremont instead of their home state.

There was legislation proposed last year in CA that would exempt out-of-state car buyers from CA sales tax. Unfortunately the bill died and never even had a chance. Its too bad because this would really promote tourism in CA and allow the wave of new Tesla owners to see the "Alien Dreadnought" that has produced their cars.

Most states I think will give you credit for what you have already paid to CA in sales tax on a new vehicle. But the states that don't have sales tax like Oregon, or states like Washington with a sales tax exemption on the first $32K, wouldn't be able to take advantage.

Maybe we can get this conversation going again, and maybe poke Tesla (or Tweet Elon) about this and see if any progress is being made on this front.
https://teslaownersonline.com/threads/i-got-my-invite.5312/page-14#post-57214
 

SoFlaModel3

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#3
One big variable here is where you’re coming from.

For instance, where I live the sales tax is 6% and while I wouldn’t be double taxed, I would be taxed at the rate in Freemont which is 9.25%. To that end on a $51,500 car the extra 3.25% would ding me for $1,673.75 plus trip expenses.
 

danzgator

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#4
One big variable here is where you’re coming from.

For instance, where I live the sales tax is 6% and while I wouldn’t be double taxed, I would be taxed at the rate in Freemont which is 9.25%. To that end on a $51,500 car the extra 3.25% would ding me for $1,673.75 plus trip expenses.
Are you sure you're only 6%? Most counties tack on another percent or two.
 

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#9
One big variable here is where you’re coming from.

For instance, where I live the sales tax is 6% and while I wouldn’t be double taxed, I would be taxed at the rate in Freemont which is 9.25%. To that end on a $51,500 car the extra 3.25% would ding me for $1,673.75 plus trip expenses.
For me in Texas, I'll pay 6.25% vs. 9.25%, a savings of $1575 for my configured M3
+ trip expenses. I think I'll pass on the Fremont pickup.
 

danzgator

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#11
One big variable here is where you’re coming from.

For instance, where I live the sales tax is 6% and while I wouldn’t be double taxed, I would be taxed at the rate in Freemont which is 9.25%. To that end on a $51,500 car the extra 3.25% would ding me for $1,673.75 plus trip expenses.
I just visited my local service center for a part, and I asked about my car. They skyped with my rep and they said that she highly recommended that I did not take delivery in CA because I would be double taxed. Now I don't know what to think...
 

garsh

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#12
I just visited my local service center for a part, and I asked about my car. They skyped with my rep and they said that she highly recommended that I did not take delivery in CA because I would be double taxed. Now I don't know what to think...
My understanding is that you won't be double-taxed, you'll just end up paying the higher CA tax rate.

California will charge you 7.5%. They'll forward 6% to Florida, but unlike most states, they keep the remaining 1.5% for themselves. I've never tried this myself, so get confirmation before relying on what I've said.
 

NOGA$4ME

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#13
I just visited my local service center for a part, and I asked about my car. They skyped with my rep and they said that she highly recommended that I did not take delivery in CA because I would be double taxed. Now I don't know what to think...
I would say if you want tax advice, you should consult a tax professional, not a customer service rep (even though they probably have a slightly better understanding of tax situations than a regular civilian).

Another case in point, I got into a debate with some guy on YouTube that swore up and down that if you buy a car in CA that they will not charge you tax until you register the vehicle at your local DMV office and that they will give you (for a nominal administrative fee) a temporary tag making it legal to drive your car for 30 days, long enough to get back to your home stage and register the vehicle.

However, the same law he pointed me to said that if bought directly from a dealer, manufacturer or dismantler that those entities would collect tax directly, so the scenario he outlined, and swore to me that he's done SEVERAL times was likely just a private sale.

I would definitely be in touch with your local DMV/DOT to get the exact situation that applies to Florida & California (not Florida/Texas that you dealt with before, because that could be different).

The other option is that idea to take delivery at the Nevada border. Sounds shady, but maybe that's the least risky option?
 

danzgator

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#14
My understanding is that you won't be double-taxed, you'll just end up paying the higher CA tax rate.

California will charge you 7.5%. They'll forward 6% to Florida, but unlike most states, they keep the remaining 1.5% for themselves. I've never tried this myself, so get confirmation before relying on what I've said.
That was my understanding until today as well. Now I'm second guessing that, but what I see on FL's DMV website says that I just show them a receipt:
upload_2017-12-7_13-36-54-png.4297
 

danzgator

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#15
I would say if you want tax advice, you should consult a tax professional, not a customer service rep (even though they probably have a slightly better understanding of tax situations than a regular civilian).

Another case in point, I got into a debate with some guy on YouTube that swore up and down that if you buy a car in CA that they will not charge you tax until you register the vehicle at your local DMV office and that they will give you (for a nominal administrative fee) a temporary tag making it legal to drive your car for 30 days, long enough to get back to your home stage and register the vehicle.

However, the same law he pointed me to said that if bought directly from a dealer, manufacturer or dismantler that those entities would collect tax directly, so the scenario he outlined, and swore to me that he's done SEVERAL times was likely just a private sale.

I would definitely be in touch with your local DMV/DOT to get the exact situation that applies to Florida & California (not Florida/Texas that you dealt with before, because that could be different).

The other option is that idea to take delivery at the Nevada border. Sounds shady, but maybe that's the least risky option?
Yeah, I'm going to visit the DMV next week and see what they say. If Tesla keeps saying that I'll be double taxed, maybe I'll agree to take delivery in Vegas just in case.
 

danzgator

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#16

NOGA$4ME

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#17
I think Tesla is wrong with respect to Florida at least.
Your interpretation seems correct to me.

That's not to say that you'll probably have to go up two levels of supervisors and bring all this documentation when you go to the DMV to register your car in Florida, but I think it's pretty much there in black and white.
 

danzgator

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#18
Your interpretation seems correct to me.

That's not to say that you'll probably have to go up two levels of supervisors and bring all this documentation when you go to the DMV to register your car in Florida, but I think it's pretty much there in black and white.
Agreed. I'm going to ask my DMV beforehand, just in case. Take the print outs with me to Tesla when I take delivery so that they don't try to overcharge me. Tell them not to register the car for me, I'll take care of it. Then, I'll take the print outs to my DMV when I register myself.
 

SoFlaModel3

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#19
My understanding is that you won't be double-taxed, you'll just end up paying the higher CA tax rate.

California will charge you 7.5%. They'll forward 6% to Florida, but unlike most states, they keep the remaining 1.5% for themselves. I've never tried this myself, so get confirmation before relying on what I've said.
Definitely my thought but note Freemont is at 9.25% sales tax.