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Changing CA use tax policy - worth pursuing?

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adiggs

Well-Known Member
Sep 25, 2012
6,425
24,529
Portland, OR
I'm wondering whether people in California think it would be worth agitating for a modification to how California thinks about and collects Use Tax on vehicle sales. As we know, the current policy amounts to a "no-out-of-state driver pickup at the factory" policy (first charged CA sales tax, and then get to pay sales tax again in the state the car gets registered in).

As an out-of-stater, that's annoying as I would like the option to pickup my new Model X at the factory, get the tour, and go on a bit of a road trip to return home (especially once the supercharger network is built out).

But enough about me - it seems to me that the policy is also costing California sales tax and other tourism related economic benefits. If California had an option to not collect sales tax on car purchases that will be registered out of state, then you would create the possibility of that whole pickup-new-car at the factory tourism business. As Tesla begins shipping cars to Europe and Asia, why not make California a destination for vacationing families from Europe and Asia who come to America to pickup their car, drive it around for a few weeks (mostly in California), seeing the sights, visiting theme parks, etc.. As people do with European cars, then take them to a third party, or back to Tesla, to package up the car and ship it "home". Sounds a lot like the BMW and other European manufacturer experience doesn't it? Except now it's happening in California primarily (good excuse for a Supercharger over Grand Canyon way, and other fantastic West Coast sights).

For those of us living in the states, some number would use this as an opportunity for an EV road trip. And every one of those road trips and vacations would start in California.


As an outsider, it looks to me like California is intentionally trying to keep this cottage industry from coming into existence, and that doesn't seem smart.

Heck - make it a special case - that car manufacturers making a sale of a new car that will be registered out of state, have access to a new temporary tag (say 3 weeks) that can't be renewed, and which doesn't carry Use Tax consequences. The California DMV can even collect a few bucks that aren't otherwise available.
 
I made the same argument in another thread about the time that deliveries started, and suggested that we could write our repsenatives. Everyone I wrote thought it was a good idea, but I believe it will need some push from Tesla to make it happen.

Here is a list to begin:

California Senators

Senator Barbara Boxer
Tel: (202) 224-3553
Website: boxer.senate.gov

Senator Dianne Feinstein
Tel: (202) 224-3841
Website: feinstein.senate.gov

San Francisco Congressional Representative

8th District: San Francisco
Congresswoman Nancy Pelosi
Washington DC Office: (202) 225-4965
District Office: (415) 556-4862
Website: http://www.house.gov/pelosi/

If you are not a San Francisco constituent of Congresswoman Pelosi's, but wish to contact her in the context of her role as Speaker of the House, use this form: Contact the Speaker | Speaker.gov

Bay Area Congressional Representatives

6th District: Marin County and Sonoma County
Congresswoman Lynn Woolsey
Washington DC Office: (202) 225-516
Marin Office: (415) 507-9554
Sonoma Office: (415) 507-9601
Website: woolsey.house.gov

7th District: Richmond, San Pablo, Martinez, Benicia, Pittsburg, Concord (see district map)
Congressman George Miller
Washington DC Office: (202) 225-2095
Concord Office: (925) 602-1880
Richmond Office: (510) 262-6500
Vallejo Office: (707) 645-1888
Website: georgemiller.house.gov

9th District: Albany, Berkeley, Emeryville, Oakland, Piedmont, Ashland, Castro Valley (see district map)
Congresswoman Barbara Lee
Washington DC Office: (202) 225-2661
District Office: (510) 763-0370
Website: lee.house.gov

10th District: Parts of Solano, Contra Costa, Alameda, and Sacramento Counties (see district map)
Congresswoman Ellen Tauscher
Washington DC Office: (202) 225-1880
Walnut Creek Office: (925) 932-8899
Antioch Office: (925) 757-7187
Website: http://www.tauscher.house.gov

11th District: Danville, San Ramon, Dublin Pleasanton (see district map)
Congressman Jerry McNerney
Washington DC Office: (202) 225-1947
Pleasanton Office: (925) 737-0727
Stockton Office: (209) 476-8552
Website: mcnerney.house.gov

12th District: South San Francisco, San Mateo County (see district map
Congresswoman Jackie Speier
Washington DC Office: (202) 225-3531
San Mateo Office: (650) 342-0300
Website: speier.house.gov

13th District: Alameda, San Leandro, Hayward, Union City, Fremone (see district map
Congressman Pete Stark
Washington DC Office: (202) 225-5065
Fremont Office: 510-494-1388
Website: http://www.house.gov/stark

14th District: Portions of San Mateo, Santa Clara and Santa Cruz Counties(see district map)
Congresswoman Anna Eshoo
Washington DC Office: (202) 225-8104
Palo Alto Office: (650) 323-2984 or (408) 245-2339
Website: eshoo.house.gov

15th District: Much of the central, northeastern and southwestern area of Santa Clara County (see district map
Congressman Mike Honda
Washington DC Office: (202) 225-2631
Campbell Office: (408) 558-8085
Website: honda.house.gov

Don't forget Jerry Brown (Gov)

http://gov.ca.gov/home.php
 
That's the exact reason why Euro Delivery is a business model for BMW and MB (others too). I did Euro Delivery on a BMW once and it was a great vacation -- drove from Munich to Amsterdam.

CA should adopt it -- even if its just for factory deliveries to out of state buyers (not any car bought at a CA dealership).