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Yea, I'm trying to figure this out right now actually. Whether or not a state allows you to skip sales tax for out of state residents apparently varies by state. I'm trying to find CA's actual laws on it. I'm also trying to figure out about the "destination/delivery charge". Normally it's not negotiable as dealers get charged by the manufacturer, but in Telsa's case they're the same entity.If you register it in CA, then you'll pay CA taxes at that time. But if it's delivered to CA for registration in WA, then there would be no CA taxes.
After a bunch of web searching, I'm pretty convinced you can't escape the CA sales tax if you take delivery in CA. I actually hunted down the state rep for the Fremont area, Ellen Corbett, and tried to use her "Contact Me" section of her website to suggest she might propose a sales tax waiver for Tesla cars taken delivery at Fremont. Sort of encouraging a specific type of tourism. Unfortunately, I have no idea if she'll get the message because hitting "Submit" on that webpage doesn't seem to do anything....I'm pretty sure that cars are different ckessel. The dealer collects the sales tax, but only if you register it in CA. If the dealer sends the registration paperwork to OR or WA, then there's no tax for them to collect. You could call a normal auto dealership in CA and ask them about it.
After a bunch of web searching, I'm pretty convinced you can't escape the CA sales tax if you take delivery in CA. I actually hunted down the state rep for the Fremont area, Ellen Corbett, and tried to use her "Contact Me" section of her website to suggest she might propose a sales tax waiver for Tesla cars taken delivery at Fremont. Sort of encouraging a specific type of tourism. Unfortunately, I have no idea if she'll get the message because hitting "Submit" on that webpage doesn't seem to do anything....
I'm sure Tesla will deliver it to Oregon and there's no issue with having to figure it out. The point was to make a fun road trip out of buying the car and taking delivery right near the factory. CA's sales tax squashes that thought. Seems dumb on CA's part to discourage out of state people from buying big ticket items in CA.There are several ways you can do this transaction.
I'm curious how that worked as my reading of the CA BoE laws implies that sales tax is required if you take possession in CA and further that the seller has some liability if they don't collected it (unless it's a private party sale, then other laws apply to get the tax paid). Obviously you did it, but I'm not sure it doesn't violate the CA laws. What did you file with CA to show sales tax wasn't due?So the answer to: "do you have to pay CA state sales tax?" is no.
I'm definitely not a lawyer, but after a few hours of reading CA BoE website pages, I can't find anything that would exempt this from the sales tax. The laws specifically talk about out of stale sales not paying the tax if the item is transported out of state by a company "typically in the business of transporting", which prevents the "I'm doing the transporting" angle.I don't think he voilated CA law, it's just unusual to be able to get plates and complete your registration of a vehicle in another state, without having completed the sale of the vehicle, and taken posession.
It's possible that on paper, Tesla delivered the car to him via the Seattle store.