Sales tax calculation: based on service center location or my registration location?

MarcG · Nov 7, 2014

I tried to search for an answer to this but couldn't find appropriate details.

Does anyone know if Tesla charges sales tax based on the service center where the car will be delivered, or the car's registration location (which is where I live)?

My current delivery choice is the service center in San Rafael, CA which has a sales tax of 9.25%.
However I live in San Francisco, which has a sales tax of 8.75%.

If I keep the San Rafael service center as my delivery location, will I be charged 9.25% or 8.75% in sales taxes?
(I know it may sound like a small difference, but on $130k, the difference in tax amounts to $650 which isn't negligible... premium center console!)

Thanks,
-Marc

NOLA_Mike · Nov 7, 2014

It is based on where you live/register the car.

I live in the New Orleans area but have bought a few cars from Houston Dealers. The sales tax I pay is 8.75% for the address where I live and the address that will be on the registration. The sales tax goes to Louisiana.

Mike

breser · Nov 7, 2014

NOLA_Mike said:
It is based on where you live/register the car.

I live in the New Orleans area but have bought a few cars from Houston Dealers. The sales tax I pay is 8.75% for the address where I live and the address that will be on the registration. The sales tax goes to Louisiana.

It's not that simple as to make a blanket statement that applies like that. Different states have different laws when it come to how their taxes are applied. Someone with knowledge of California taxes needs to answer his question.

To give an example. I've bought cars from Kansas and driven them to Washington where I live now and Kansas sold me a drive away tag. California on the other hand won't do that and you pay their sales tax regardless of if you're not registering the car in California (at least that's what prior discussions about factory deliveries have concluded).

To the OP. If you want the correct answer ask Tesla. They should know.

NOLA_Mike · Nov 7, 2014

breser said:
It's not that simple as to make a blanket statement that applies like that. Different states have different laws when it come to how their taxes are applied. Someone with knowledge of California taxes needs to answer his question.

To give an example. I've bought cars from Kansas and driven them to Washington where I live now and Kansas sold me a drive away tag. California on the other hand won't do that and you pay their sales tax regardless of if you're not registering the car in California (at least that's what prior discussions about factory deliveries have concluded).

To the OP. If you want the correct answer ask Tesla. They should know.

I bought my Model S from Tesla in California via the website because Tesla isn't authorized to sell in Louisiana and I did not pay California taxes.

But thank you for your critique of my blanket statement. You seem good at that.

breser · Nov 7, 2014

NOLA_Mike said:
I bought my Model S from Tesla in California via the website because Tesla isn't authorized to sell in Louisiana and I did not pay California taxes.

But thank you for your critique of my blanket statement. You seem good at that.

The example I gave was about the factory delivery. I have no idea what the details of your order/delivery were. But you can't assume that the transaction between California and Louisiana is the same as the transaction between say California and Washington or even just someone buying in California. State sales tax laws vary by a lot. Hell some of them don't even have sales tax.

action7981 · Nov 7, 2014

I've purchased cars in different counties in California than my residence and always paid the tax rate for the county I reside. CA tax on autos for out of state purchasers only applies if you take possession of the car in CA.

MarcG · Nov 7, 2014

breser said:
To the OP. If you want the correct answer ask Tesla. They should know.

Thanks guys, I talked to the finance guy at Tesla and they confirmed what action7981 said:

action7981 said:
I've purchased cars in different counties in California than my residence and always paid the tax rate for the county I reside.

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Sales tax calculation: based on service center location or my registration location?

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