Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Sales tax on an out of state purchase from TESLA

This site may earn commission on affiliate links.
Buying a Tesla in Arizona was interesting in Sales tax. Tax in Tucson is 8.1%. 5.6% state + .5% county + 2% city. Since you can't buy car in Arizona I had to register and pay sales tax at the DMV myself. They only charged me 5.6% because it's a state agency - silly.

The Arizona auto dealers lobby is costing the cities and counties.

Same here, but I'm in Scottsdale, so slightly different rates… I've heard of some cities in AZ sending a use bill if they review the AZ MVD records -- but I never received one...
 
"Tax avoidance is completely legal—and extremely wise. Tax evasion, on the other hand, is an attempt to reduce your tax liability by deceit, subterfuge, or concealment. Tax evasion is a crime."

Tax Avoidance Is Legal; Tax Evasion Is Criminal | BizFilings Toolkit


Read the rules and examples. I'd take the original receipt and go back and pay the proper amount of tax. No one is anonymous on the internet and it's much better to get a good night's sleep than be thinking about a possible knock on the door.
 
Doesn't stop people from over declaring mileage expenses for driving to work, etc. fairly few are entirely innocent. I think a lot of people take huge advantage of that due to the rich per-mile value the IRS allows.
 
Insane,

The Kentucky Department of Revenue has a Sales Tax fraud hotline on their website. You're in here bragging about cheating on Sales & Use Tax and insulting other posters (who might be calling that hotline as I type this.) How hard do you think it would be for someone to match up a 2014 P85D registered Q3 2015? That's low hanging fruit for an investigator.

This isn't a cute fraternity prank. It's a class D felony. And you're creating risk for yourself, where virtually none previously existe, by posting about it on the internet.

Ask the mods to delete & move on.
 
Doesn't stop people from over declaring mileage expenses for driving to work, etc. fairly few are entirely innocent. I think a lot of people take huge advantage of that due to the rich per-mile value the IRS allows.

Note -- the IRS considers driving to/from work and your residence to be commuting. If you are reimbursed for that by your company, it would be considered a taxable payment. See IRS Publication 463 of consult a tax advisor if you would like more information.

Your point about people overstating business mileage is true. Just keep in mind that the IRS does require a mileage log to be kept and can ask for that in an audit. Google Maps makes it very easy to verify distances (and some of the expense reporting tools many companies now use include a Google Maps tool to calculate mileage).

Please be careful everyone. As Canuck posted -- tax evasion is a crime (and he made a good point about tax avoidance)...
 
I have prepared a few tax returns (just a few--upwards of 5,000) over the past 35 years. I have clients from all walks of life and income levels. These folks would never steal from another. They would never disregard a bill. They would never haggle over an invoice. But some of these clients think it is OK to "massage" some of the amounts on their tax returns in order to reduce their tax burdens.

We may not agree with the tax laws. We may not like how the politicians and bureaucrats spend (throw away) our tax dollars. We may believe that we pay way too much on taxes. I do not argue with these beliefs. These are true feelings.

We all know that the chances of being caught are infinitesimally small. And if we are, this is usually a civil matter and the only penalty is interest, with an occasional punitive assessment tacked on.

Nonetheless, the laws apply to all. We do not get a choice of which laws to obey and which to disregard just because we can get away with something or because we don't like them.
 
I followed the advise of an individual working at the DMV office. Based on her seating and desk I perceived her to be someone of authority and experience.

Any way I see that people are angered so I have requested this to be removed. Hopefully it is gone soon.

We rarely delete entire threads.

From what I understand you purposely didn't bring in the invoice showing you paid $100+k for the P85D and asked them to pull up the value of the car from their records and they came in with the incorrect low value of $82,000. When asked if you'd pay 6% of that you said no. They went back and came up with $79,900 and you agreed to that for some reason. Did you not correct them when they gave you the incorrect value of the car? Also, since their initial number was $30,000 too low why did you continue to haggle?
 
Last edited:
Hi,
If she keeps the car in CA (or a state other than OR), the Oregon plates are technically illegal in CA (or other states). I know this is a common tax dodge (seen it done in AZ, also with OR plates). CA and AZ (and other states with sales/use taxes on cars) will collect the use tax when the car is registered in the person's residential state...
But the cars (she has been doing that since about 1987 with multiple cars) are never registered in her name, or her state. It is also not illegal.
 
Last edited:
Hi,
But the cars (she has been doing that since about 1987 with multiple cars) are never registered in her name, or her state. It is also not illegal.

You said your California resident friend was leasing her car from her fathers company in Oregon. In that case it is illegal not to have it registered in California. If the vehicle was furnished to her by her father and remains in his name there's no registration requirement; although booking that as a business expense might be a whole different discussion.