Texas legislative issues/Operation Silent Thunder

[sublimaze1]

I had to go to the tax assessors office to register, pay taxes, and get my plates.

I assume since you made it through the tax assessors line, you had a green sheet from the inspection?

 

[dsm363]

I called my Congressman and spoke with the deputy Chief of Staff. They're going to look into this as this was not something he thought was right either.

 

[sublimaze1]

I called my Congressman and spoke with the deputy Chief of Staff. They're going to look into this as this was not something he thought was right either.

That's actually good news. More than I got from mine ...

 

[TXjak]

... I explained that I thought it was very odd that an American car company wasn't legally allowed to sell cars in Texas ...

It is not true that Tesla cannot sell cars in Texas. They obviously have and are still selling them.

What is the case is that, being a manufacturer, they cannot own a dealership or sell like a dealer in Texas. No vehicle manufacturer is allowed to own a dealership in Texas, according to Texas state law. (Texas is not the only state like this, BTW.) So Tesla can talk about their products in their stores (e.g., Houston) but have to refer you to their website for prices or anything sales related.

When you buy from them, the sales transaction essentially takes place in California where Tesla is based. Since you send them the money and a third party delivers the car to you, they have not violated the dealership law in Texas. Fortunately the law apparently does not prohibit them from providing service, so I expect that we'll see the service centers that have been promised.

What you want your state legislators to do is decide that the law is antiquated and should be amended to allow manufacturers to be able to sell like a dealer and/or own dealerships without having to provide franchises.

Due to the dealership law in Texas, having a Delivery Specialist on site handling the delivery prior to the completion of the sale has been construed as a dealer activity and has been disallowed. Another provision that needs changing is the one which essentially says that, other than the County Tax Assessor/Collector, only dealers can collect the sales tax on the sale of a vehicle. Tesla was including the sales tax in the MVPA, but the state has said that Tesla is not authorized to handle the tax on the sale, since they aren't a dealer. This means that, unless you can convince your bank to cover it, you will have to pay the 6.25% sales tax out of pocket along with the rest of the title, license and registration fees when you visit your County Tax office.

 

[dsm363]

Everything you said is accurate. By selling I mean Tesla can't directly sell you the car with a Texas tile and be involved in the same way a dealer can not have to jump through 1000 hoops.

 

[jerry33]

Everything you said is accurate. By selling I mean Tesla can't directly sell you the car with a Texas tile and be involved in the same way a dealer can not have to jump through 1000 hoops.

Perhaps Tesla should waive the $180 dealer prep as you have to do that yourself.

 

[STxTesla]

... I explained that I thought it was very odd that an American car company wasn't legally allowed to sell cars in Texas .../QUOTE]

It is not true that Tesla cannot sell cars in Texas. They obviously have and are still selling them.

What is the case is that, being a manufacturer, they cannot own a dealership or sell like a dealer in Texas. No vehicle manufacturer is allowed to own a dealership in Texas, according to Texas state law. (Texas is not the only state like this, BTW.) So Tesla can talk about their products in their stores (e.g., Houston) but have to refer you to their website for prices or anything sales related.

When you buy from them, the sales transaction essentially takes place in California where Tesla is based. Since you send them the money and a third party delivers the car to you, they have not violated the dealership law in Texas. Fortunately the law apparently does not prohibit them from providing service, so I expect that we'll see the service centers that have been promised.

What you want your state legislators to do is decide that the law is antiquated and should be amended to allow manufacturers to be able to sell like a dealer and/or own dealerships without having to provide franchises.

Due to the dealership law in Texas, having a Delivery Specialist on site handling the delivery prior to the completion of the sale has been construed as a dealer activity and has been disallowed. Another provision that needs changing is the one which essentially says that, other than the County Tax Assessor/Collector, only dealers can collect the sales tax on the sale of a vehicle. Tesla was including the sales tax in the MVPA, but the state has said that Tesla is not authorized to handle the tax on the sale, since they aren't a dealer. This means that, unless you can convince your bank to cover it, you will have to pay the 6.25% sales tax out of pocket along with the rest of the title, license and registration fees when you visit your County Tax office.

When I received my final paperwork, I had to sign a new MVPA that took away the taxes that were charged on the original MVPA. So...I will have to get insurance coverage, then a green sheet from the inspection station followed by a trip to the DMV to pay my taxes and get plates? (I'm wanting to sort out the order of events that need to take place).

 

[stopcrazypp]

I wired tesla the money before they put it on the truck, as I guess the money can't change hands in Texas and its a truck driver delivering your car.
Taxes were not included in my paperwork. I was lucky enough to pay cash so I can't speak to the loan process. I had to go to the tax assessors office to register, pay taxes, and get my plates.
No delivery specialist. I read the manual, called HQ, and talked with my local service manager via phone.
Car is awesome, but to make it long term Tesla is going to have to do something about this.

Wow. It's a bit ridiculous all the hoops you have to jump through to buy a car without going through a dealer. Definitely people should be writing or phoning their state legislative representatives to try to get the law changed (or Tesla may have to set aside some money for lobbying).

 

[dsm363]

Wow. It's a bit ridiculous all the hoops you have to jump through to buy a car without going through a dealer. Definitely people should be writing or phoning their state legislative representatives to try to get the law changed (or Tesla may have to set aside some money for lobbying).

Tesla has been working on this but the legislature only meets every two years and is starting again in January so hopefully they can get something done this session.

- - - Updated - - -

When I received my final paperwork, I had to sign a new MVPA that took away the taxes that were charged on the original MVPA. So...I will have to get insurance coverage, then a green sheet from the inspection station followed by a trip to the DMV to pay my taxes and get plates? (I'm wanting to sort out the order of events that need to take place).

I believe that is accurate. Make sure you bring a copy of your final MPVA that has price on car on it so the DMV can verify how much tax you owe.

 

[dsm363]

I moved some of the posts about registering the car and the problems related to that here
Texas registration issues - Page 2

 

[sublimaze1]

RE: Delivery Specialist:

I asked my OE rep (yesterday) about the possibility of me (and others here in Texas) getting a rep to come by after the car is delivered to do a post-delivery orientation to the vehicle. I guess I am like many others on this forum, in that I have read so much that others have posted that I feel like I have been remotely oriented. Nonetheless, I am also a firm believer of "if I have paid for it, I really would like to receive it"

Hence, my OE rep stated that Tesla is still working with their legal department to see how they can care for us in the Lone Star State without being in opposition to the law - sort of like the Get Amped tour being approved under different circumstances in sites in Texas. Nonetheless, I assume they will get something figured out, whether it would be as a Ranger Service visit, or a Follow up customer service visit, or something.

We shall see.

 

[brianman]

remotely oriented

First time I've heard this phrase. I think I like it.

 

[W.Petefish]

Maybe they will create an orientation app for the touch screen...

 

[STxTesla]

RE: Delivery Specialist:

I asked my OE rep (yesterday) about the possibility of me (and others here in Texas) getting a rep to come by after the car is delivered to do a post-delivery orientation to the vehicle. I guess I am like many others on this forum, in that I have read so much that others have posted that I feel like I have been remotely oriented. Nonetheless, I am also a firm believer of "if I have paid for it, I really would like to receive it"

Hence, my OE rep stated that Tesla is still working with their legal department to see how they can care for us in the Lone Star State without being in opposition to the law - sort of like the Get Amped tour being approved under different circumstances in sites in Texas. Nonetheless, I assume they will get something figured out, whether it would be as a Ranger Service visit, or a Follow up customer service visit, or something.

We shall see.

I would be happy to have a dedicated webcast with Q & A's from us available. I'm sure they will try their best to get us the info.

 

[Lynn005]

I don't like spending $990 for "Tesla Personal Delivery" when that's not what you get. I'll take the car over to the Galleria store if I have questions. They've been very impressive thus far.

 

[dsm363]

Does anyone know the exact Texas law that is causing all the problems for Texas? I called the local office for Senator Cornyn and spoke with someone for about 20 min who was very interested in the matter. It is of course a state issue but he said he would look into it. I'm trying to speak with a human at Gov. Perry's office about this issue but am having a hard time getting ahold of someone.

 

[SteveH]

Does anyone know the exact Texas law that is causing all the problems for Texas?

I've not been able to find the actual laws, but there is reference here: http://www.txdmv.gov/whatyouneed/publications/dealer/dealer_manual.htm. In the licensing section it states that manufacturers can't be dealers and then much of the rest of the document outlines the things that only licensed dealers can do.

I reached out to NADA about a week ago to try and get their take on things and understand why anyone could justify this regulation in a state that supposedly believes in the free market, but they have not responded to my e-mail. The goal this weekend is to draft letters to state legislators.

 

[sublimaze1]

Does anyone know the exact Texas law that is causing all the problems for Texas? I called the local office for Senator Cornyn and spoke with someone for about 20 min who was very interested in the matter. It is of course a state issue but he said he would look into it. I'm trying to speak with a human at Gov. Perry's office about this issue but am having a hard time getting ahold of someone.

It is in Section 503 somewhere. I am continuing to look in between cases.

.........

Tex. Rev. Civ. Stat. art. 4413(36), §§ 4.01, .06(a)(3), (6) & 5.02C(c)

I cut, copied and pasted and am not ashamed

 

[stephenpace]

That helps! TRANSPORTATION CODE  CHAPTER 503. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES

 

[SteveH]

I don't see the part in chapter 503 that actually prevents a manufacturer from being a dealer. Sorry I'm missing it, but can you be more specific?