Do you have to pay CA state sales tax?

[ckessel]

According to State of California - BOARD OF EQUALIZATION - SALES AND USE TAX REGULATIONS - INTERSTATE AND FOREIGN COMMERCE -
Regulation 1620 (http://www.boe.ca.gov/pdf/reg1620.pdf)
"If title to the property sold passes to the purchaser at a point outside this state, or if for any other reason the sale occurs outside this state, the sales tax does not apply, regardless of the extent of the retailer’s participation in California in relation to the transaction."

Yea, I saw that too. However, you pay sales tax where you take possession and if you look at the BoE's legal definition of "taking possession" it's at the physical point of taking possession, not at the paperwork point. It then goes on to describe exemptions if a carrier takes possession on your behalf to deliver it out of state.

Specifically at the bottom of page 1 in that document you linked, under "To Other States - When Sales Tax Applies" it says: "...tax will apply if the property is diverted in transit to the purchaser or his representative in this state, or for any other reason it is not delivered outside this state"

And yea, the tax question probably deserves it's own thread.

 

[bluetinc]

Hey Ckessel,

Where did you find CA's legal definition of "possession", I couldn't and it would be very helpful here because in (a) it clearly implies the the passing of the title serves as possession.

Has anyone received the title to their car from Tesla at a time prior to physical delivery of the car?

Peter

 

[Lloyd]

I called my state senate represenative here locally Sam Blakeslee, and suggested that he co-author a bill to allow a temporary registration and delivery of the vehicles in California without triggering sales tax with the senator from the 13th district Elaine Alquist where Tesla is located. I gave a brief description of how this would help the state, Tesla, and the owners. He agreed and will look into it.

 

[ckessel]

Where did you find CA's legal definition of "possession", I couldn't and it would be very helpful here because in (a) it clearly implies the the passing of the title serves as possession.

I can't find it now. It was in amongst a mass of web pages and PDFs I read last week. There's a document that says sales tax applies to where you take receipt, then a section later that defined receipt as physically taking possession of the car.

Edit: I think this was it http://www.boe.ca.gov/sstp/pdf/Section311FinalClearance11905.pdf.

 

[Lloyd]

My understanding is it is when the wheels hit the (public) road and you are no longer using a dealer plate.

 

[ckessel]

I called my state senate represenative here locally Sam Blakeslee, and suggested that he co-author a bill to allow a temporary registration and delivery of the vehicles in California without triggering sales tax with the senator from the 13th district Elaine Alquist where Tesla is located. I gave a brief description of how this would help the state, Tesla, and the owners. He agreed and will look into it.

Nice work Lloyd. I'll keep my fingers crossed

 

[bluetinc]

Thanks Lloyd, that would be fantastic if they could do that, and really a win for everyone involved (Except the shipping company).

Peter

 

[ahimberg]

Next we'll want Tesla's DC chargers on I-5 (and how about some on US101) to get online right away to cover the west coast pickups.