Delivery Dilemma - AZ Sales Tax

[fluxemag]

Just finalized my car last night, very excited. 40kWh/Standard Suspension/White/Black Leather/Lacewood/Stereo Upgrade/Pano Roof/19". I am P14875 and got a rough estimated delivery window of May-June. When I put down my deposit I was figuring November, but this is a welcome surprise. The interesting thing is that AZ has a temporary 1% sales tax which is set to expire on May 31st. So I'm really hoping to get the car June 1st. I wonder what day is used to calculate the sales tax rate to use. Is it the day I register the car at the MVD? Do they use the date I paid for the car, or when it was delivered? I read in the Pre MVPA that delivery can be deferred up to 30 days from being notified. It's not a huge deal, but I can wait another week or two to save $600-700. That would be a nice stack of coins to throw at a new set of wheels or a subwoofer for the frunk.

[jomo25]

Is that temp tax a municipal tax? Tesla is only charging the state sales tax, regardless of municipality.


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[fluxemag]

State of AZ tax rate declines from 6.6 to 5.6% on June 1st of this year. Prop 204 failed to extend the temporary 1% statewide sales tax increase.

Voters decide Arizona sales tax should go back to 5.6% - Inside Tucson Business: News: arizona, proposition 204, sales tax, tax, percentage

[Sousaphil]

Good question. I think the tax is charged with the effective date that you visit the MVD. I really don't think their systems are going to be complex enough to charge a variable sales tax rate. On June 1, I think everything will likely go to 5.6%.

In other news, you will love the low registration fees! Mine was just over $40 per year for 2 years.

[fluxemag]

Phil, I agree, my thought was they will probably just switch over the rate at the MVD and base it on when you show up. So worst case scenario I'll just get a 30 day general use tag to punt the ball down the field a ways. The $40 VLT will be a huge break compared to the $600 on my current car. I'll even get some money back for the remainder on my old plate.

-John

[gimmee2]

I had posted this in the Arizona thread but got no response. "Regarding the city sales tax, I think it depends on the city. I know Scottsdale will hit you up for a 'use tax' of 1.45%. I have purchased a couple of vehicles from out of state dealers and both times I received a letter from the City of Scottsdale a month or two after registering with the MVD requesting that I pay this. Go to Sales and Use Tax Information and click on the 'Use Tax' link. I don't see any exceptions listed for EVs but there very well might be. I'd be curious to hear from others in AZ (especially Scottsdale) who have had their cars for more than a couple of months to see if they've had to pay this." Do any of you fellow Scottsdale residents know if EVs are exempt from this tax?

[fluxemag]

Update...just registered my car yesterday. They charged me the old sales tax rate based on the estimated delivery date on the MVPA. Mine was 5/31! I actually got the car on 5/27, so technically this is fair, but they got me. I feel like it still might depend on who you get at the DMV. If I were to do it again I would wait a few months and stick with the temp tag. Maybe they will forget by then. Cost me an extra $800 I fully expect Scottsdale to hit me up next.

[irishstoutaz]

Bummer... thought they might do it based on the date. I am sure jomo25 will be interested in seeing this since he was holding off registering. Was the registration straightforward otherwise?

Update...just registered my car yesterday. They charged me the old sales tax rate based on the estimated delivery date on the MVPA. Mine was 5/31! I actually got the car on 5/27, so technically this is fair, but they got me. I feel like it still might depend on who you get at the DMV. If I were to do it again I would wait a few months and stick with the temp tag. Maybe they will forget by then. Cost me an extra $800 I fully expect Scottsdale to hit me up next.

[fluxemag]

Yeah, I hate losing. The icing on the cake was they don't take AMEX so I didn't even get my points. Other than that it was very easy. In and out in 20 minutes, with plate and registration in hand. She had a little trouble with the address from Aliant being different on their system than what Tesla had on the paperwork.

The calculation of tax took place on an accountant style calculator. She asked me "when did you get it?" and I didn't want to lie, even though I could have said "yesterday, the 2nd". I think if I had had a clerk who wasn't so sharp it wouldn't have been a problem. And since it was literally the first business day after the rate change it was probably fresh in everyone's mind. So I'd say wait a month or so. I almost left and said nevermind, but it was too late.

Bummer... thought they might do it based on the date. I am sure jomo25 will be interested in seeing this since he was holding off registering. Was the registration straightforward otherwise?

[irishstoutaz]

Thanks.. our paperwork is dated 6/8 so we will be good regardless but jomo25 may want to wait and possibly get the lower % if they aren't paying close attention.

Yeah, I hate losing. The icing on the cake was they don't take AMEX so I didn't even get my points. Other than that it was very easy. In and out in 20 minutes, with plate and registration in hand. She had a little trouble with the address from Aliant being different on their system than what Tesla had on the paperwork.

The calculation of tax took place on an accountant style calculator. She asked me "when did you get it?" and I didn't want to lie, even though I could have said "yesterday, the 2nd". I think if I had had a clerk who wasn't so sharp it wouldn't have been a problem. And since it was literally the first business day after the rate change it was probably fresh in everyone's mind. So I'd say wait a month or so. I almost left and said nevermind, but it was too late.