Sales tax incentive for California EV buyers

TeaLeafTree · Aug 30, 2015

Anyone familiar with upcoming legislation for easing the sales tax on EV? I'm waiting to see if this bill will go through to pull the trigger on a Model S either new or CPO.

Link: Bill Text - AB-945 Sales and use taxes: exemption: low-emission vehicles.

No2DinosaurFuel · Aug 30, 2015

Seems like a move forward in my opinion. They want to promote low emission vehicles and this is one way to do it. Ease the tax on it. However, I would prefer if they only limit them to 0-emission vehicles. None of those hybrid things. Sure the Hybrids are lower emission, but they do still emit and ultimately is not good for the environment. Moreover, if they limit to purely 0-emission vehicles then it will drive innovation in this area and help keep those 0-emission vehicles resale value a bit higher compared to hybrids.

chriSharek · Aug 31, 2015

What about the Volt? Technically, it's a hybrid, but has a battery large enough to be eligible for the $7,500 Fed Tax Credit (like the largest of BEVs) . . .

jeffro01 · Aug 31, 2015

No2DinosaurFuel said:
Seems like a move forward in my opinion. They want to promote low emission vehicles and this is one way to do it. Ease the tax on it. However, I would prefer if they only limit them to 0-emission vehicles. None of those hybrid things. Sure the Hybrids are lower emission, but they do still emit and ultimately is not good for the environment. Moreover, if they limit to purely 0-emission vehicles then it will drive innovation in this area and help keep those 0-emission vehicles resale value a bit higher compared to hybrids.

I agree. Zero emissions or no sales tax relief, period. Yes I also own a Volt and realize I'd be shutting myself out but if the true goal was to encourage sales on EVs then keep the incentive to actual real full EVs.

Jeff

v8eater · Sep 2, 2015

I reviewed the proposal linked but didn't see any mention of out of state buyers getting the tax relief either. Only reason I ask is because it would be cool to pick up a MS at the factory, get a tour, then drive home.

jerjozwik · Sep 2, 2015

hmmmmm, that should work out nicely if i do in fact order in december.

djn04 · Sep 2, 2015

I've been looking for information on this as well. If this passes it looks like I could save around $4,000. I wonder if the $2,500 rebate would still apply?

NorCalSJ · Sep 2, 2015

TeaLeafTree said:
Anyone familiar with upcoming legislation for easing the sales tax on EV? I'm waiting to see if this bill will go through to pull the trigger on a Model S either new or CPO.

Link: Bill Text - AB-945 Sales and use taxes: exemption: low-emission vehicles.

it would be nice if the state tax rate was lower but it wouldn't factor in when I purchase the car.

bonaire · Sep 2, 2015

TeaLeafTree said:
Anyone familiar with upcoming legislation for easing the sales tax on EV? I'm waiting to see if this bill will go through to pull the trigger on a Model S either new or CPO.

Link: Bill Text - AB-945 Sales and use taxes: exemption: low-emission vehicles.

If that was enacted and if the sales tax was waived, you could have factory deliveries happening for many buyers from many states doing "return home trips via Superchargers".

e-FTW · Sep 2, 2015

jerjozwik said:
hmmmmm, that should work out nicely if i do in fact order in december.

I that when we should expect this to be effective?

- - - Updated - - -

I am hours/days from putting my order in for a lease. But am not in any particular rush to get the car. Going for a RWD 70, and looks like an end of October delivery.

A quick web search seem to indicate that this bill's status:
"

05/28/15	In committee: Held under submission.

"
Sounds like a death sentence for a bill. Any experts in the room?

TeaLeafTree · Sep 2, 2015

NorCalSJ said:
it would be nice if the state tax rate was lower but it wouldn't factor in when I purchase the car.

Yeah, I think you won't have to pay sales tax until you register your new car with the DMV.

jerjozwik · Sep 3, 2015

e-FTW said:
I that when we should expect this to be effective?

the link said effective jan 1st. order in December, car delivered in February[?] should be effective by then.

e-FTW · Sep 3, 2015

I need to order now, as I can get an incentive from my employer (3k$ gross) if I do that before end of the month.

Also, am unsure as to what that bill's status actually means :

05/28/15	In committee: Held under submission.

e-FTW · Sep 4, 2015

jerjozwik said:
the link said effective jan 1st. order in December, car delivered in February[?] should be effective by then.

Not so sure about that. The bill seems to be sitting in committee. Legislature experts would have to translate to English what I found above.

jerjozwik · Sep 4, 2015

oh yes, completely agree. but... if it does pass thats when it will go into effect. if anyone here fallows the state assembly closely please update if and when it passes.

bxr140 · Sep 5, 2015

No2DinosaurFuel said:
I would prefer if they only limit them to 0-emission vehicles. None of those hybrid things.

Absolutely disagree. Binary idealism is never the most efficient path to progress. Big battery hybrids will do more to actually change the hearts and minds toward BEV than any current or near future BEV (Tesla included), not to mention theyre an ideal stepping stone for the legacy automobile supply chain.

Big battery plug in hybrids are the near future answer and should be heavily incentivised.

dadaleus · Sep 5, 2015

Moderator: You may want to merge this thread with California bill AB945

I'd love to get more info on this. I also don't know how to read legislative process-ese, but the Legislative calendar says all bills must be passed by Friday or they are dead for this year. Legislative Calendar Deadlines | senate.ca.gov

The fact that it is still in committee combined with the above makes me think it has no chance of passing this year. I'd love to be wrong. (Repeating others above) anyone here understand this process better that can give us a better understanding of what this status means?

shokunin · Sep 5, 2015

e-FTW said:
I need to order now, as I can get an incentive from my employer (3k$ gross) if I do that before end of the month.

Also, am unsure as to what that bill's status actually means :

05/28/15 In committee: Held under submission.

Unless you have a trade-in vehicle, I'd take the $3k incentive from your employer. This bill is simply a $10,000 sales price deduction for tax calculation or the trade-in exemption on sales tax.

So instead of being taxed on $100,000 you'd be taxed on $90,000. A tax savings of about $900. If your trade in is valued at 30,000 then you would owe sales tax on $70,000.

e-FTW · Sep 6, 2015

shokunin said:
Unless you have a trade-in vehicle, I'd take the $3k incentive from your employer. This bill is simply a $10,000 sales price deduction for tax calculation or the trade-in exemption on sales tax.

So instead of being taxed on $100,000 you'd be taxed on $90,000. A tax savings of about $900. If your trade in is valued at 30,000 then you would owe sales tax on $70,000.

This really helps, thanks!

brucet999 · Sep 7, 2015

TeaLeafTree said:
Anyone familiar with upcoming legislation for easing the sales tax on EV? I'm waiting to see if this bill will go through to pull the trigger on a Model S either new or CPO.

Link: Bill Text - AB-945 Sales and use taxes: exemption: low-emission vehicles.

Local portion of sales tax is not affected, so the rate of savings would be 6.5% on the net sale amount after incentives and trade-ins. Given the hostility of key legislators toward Tesla, I would be surprised if this bill were to get out of committee without a limitation on the price of the car similar to the bill being introduced to allow the state tax incentive only on cars costing less than $45K or some such.

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