Washington State EV Sales Tax Exemption - Bill Introduced

[acarney]

Did they spell out how they come to the $45k price limit? Is it based on the starting MSRP before options? Does it include the delivery and destination $1200 fee?

Would a Long Range RWD qualify since it looks like it's written up on the motor vehicle order agreement as "Model 3 $35,400" with "Long range rear wheel drive $10,500" option and then a subtotal of $45,900 before the $1,200 destination fee...

Or is it based on "out the door cost" before tax... which means basically the Standard Range Plus is the highest you can go (though you actually do still have a little room for adding options to that model)

 

[PNWLeccy]

Did they spell out how they come to the $45k price limit? Is it based on the starting MSRP before options? Does it include the delivery and destination $1200 fee?

Would a Long Range RWD qualify since it looks like it's written up on the motor vehicle order agreement as "Model 3 $35,400" with "Long range rear wheel drive $10,500" option and then a subtotal of $45,900 before the $1,200 destination fee...

Or is it based on "out the door cost" before tax... which means basically the Standard Range Plus is the highest you can go (though you actually do still have a little room for adding options to that model)

I'm not sure the exact details but my guess is that LR RWD won't qualify which is a huge bummer because you just know that WA legislators pulled a good round number out of their asses to get $45k. A $1k fed tax credit relief reduction in price from Tesla would give us a chance but not if they include doc and dest. fee in the total. It's too bad because i don't think there is any chance Tesla reduces the price on an off-menu model. Unfortunately, SR+ seems like best option to take advantage of combined state and fed tax incentives...

 

[acarney]

I'm not sure the exact details but my guess is that LR RWD won't qualify which is a huge bummer because you just know that WA legislators pulled a good round number out of their asses to get $45k. A $1k fed tax credit relief reduction in price from Tesla would give us a chance but not if they include doc and dest. fee in the total. It's too bad because i don't think there is any chance Tesla reduces the price on an off-menu model. Unfortunately, SR+ seems like best option to take advantage of combined state and fed tax incentives...

As soon as I posted this I got an email from my sales advisor checking up on me and talking about the tax exemption and which models (the base and SR+) qualify, lol. However, he didn't mention if it counted the destination fee or not, I emailed and asked him.

There is some question over in the Long Range RWD waiting room that the car DOES include AP and with black/black came to $45,900 before destination fee. BUT, people have also said it's possible to call in and request to NOT have AP and save $2k. So..... that could make the LR RWD come in at $43.9k before destination and $45.1k with. So, depending on if they count the destination fee or not the car MIGHT qualify for the WA $2500 credit. Which would be crazy good since you could upgrade to AP later (ya maybe more expensive, but also you might not need to use it for a couple years anyway).

I wonder if it did include destination if I could request that be invoiced separately as an accessory sale or something and waved on my motor vehicle order agreement

That said, it sounds like you may have to wait months for the off menu RWD Long Range... and my lease is over at the end of Aug, so who knows if I could make that work...

 

[PNWLeccy]

Trying to read through this bill and all i could find was this language:

"(iii)(A) Have a vehicle selling price plus trade-in property of like kind for purchased vehicles that:6 7 (I) For a vehicle that is a new vehicle at the time of the 8 purchase date or the date the lease agreement was signed, does not exceed forty-five thousand dollars;"

Unless we have some lawyers here to unpack this, my guess is that they would look at the invoice which includes doc and destination fee and we would be $100 over the limit @ $45.1K. The trick is to get an inventory model with a few miles and get a couple hundred knocked off through a credit. This seems like a long shot...

 

[jebinc]

Why the $45k limit? Doesn't help most Telsa new car buyers... Dang politicians...

 

[acarney]

Trying to read through this bill and all i could find was this language:

"(iii)(A) Have a vehicle selling price plus trade-in property of like kind for purchased vehicles that:6 7 (I) For a vehicle that is a new vehicle at the time of the 8 purchase date or the date the lease agreement was signed, does not exceed forty-five thousand dollars;"

Unless we have some lawyers here to unpack this, my guess is that they would look at the invoice which includes doc and destination fee and we would be $100 over the limit @ $45.1K. The trick is to get an inventory model with a few miles and get a couple hundred knocked off through a credit. This seems like a long shot...

Long shot might be an understatement for the Long Range RWD, it sounds like these are only being made in batches once orders build up, so I'm not sure how many inventory cars are hanging around on lots... I wonder if Tesla would discount $101 for a for sure sale, especially if I buy some accessories from that store

 

[acarney]

Why the $45k limit? Doesn't help most Telsa new car buyers...

They're not trying to help Tesla car buyers, they're trying to help lower income people, and they probably figured (somehow) that $45k was a range that covered many electric cars but also kept people that were buying expensive cars from getting a benefit kicked in by tax payers.

 

[jebinc]

They're not trying to help Tesla car buyers, they're trying to help lower income people, and they probably figured (somehow) that $45k was a range that covered many electric cars but also kept people that were buying expensive cars from getting a benefit kicked in by tax payers.

Dang politicians...

 

[acarney]

Dang politicians...

Yep! At least they expanded it to include used cars... however that is capped at $35k, so it's hard to find a used Model 3 under that amount, plus you lose the $1875 fed....

 

[Leafdriver333]

they need to increase the incentive.
this is not really swaying anyone imo

 

[acarney]

they need to increase the incentive.
this is not really swaying anyone imo

I don’t know, if you get a car that still qualifies for the $7,500 then combined with this it’s $10k off the price of an EV.

 

[ChrisH]

I don’t know, if you get a car that still qualifies for the $7,500 then combined with this it’s $10k off the price of an EV.

Yeah but 85% of EVs being purchased right now are only getting the $1875 lol

 

[acarney]

Yeah but 85% of EVs being purchased right now are only getting the $1875 lol

Not much Washington can do about that. The fed needs to step in and adjust the credit, and really make it a point of sale discount.

 

[ChrisH]

Not much Washington can do about that. The fed needs to step in and adjust the credit, and really make it a point of sale discount.

Yeah agreed. I’m bitter at WA because I bought mine in Aug 2018 after they failed to continue the previous sales tax incentive or at least make a lesser one like the one that goes into effect this August.

I bought my 3 at the worst time. LR RWD was still it’s highest price and there was non WA incentive. Even with the $7500 tax credit it’s still WAY less now. No free lifetime data. No free supercharging. Still love the car, just a little bitter about how things have changed since then.

 

[acarney]

Yeah agreed. I’m bitter at WA because I bought mine in Aug 2018 after they failed to continue the previous sales tax incentive or at least make a lesser one like the one that goes into effect this August.

I bought my 3 at the worst time. LR RWD was still it’s highest price and there was non WA incentive. Even with the $7500 tax credit it’s still WAY less now. No free lifetime data. No free supercharging. Still love the car, just a little bitter about how things have changed since then.

LR RWD wouldn’t have qualified for the WA credit (the current one) anyway. Vehicle selling price or fair market value has to be under $45k. This was part of the reason I settled on a SR+ rather than trying to off menu order a LR RWD, even though I really wanted that extra range and faster supercharging...

 

[ChrisH]

LR RWD wouldn’t have qualified for the WA credit (the current one) anyway. Vehicle selling price or fair market value has to be under $45k. This was part of the reason I settled on a SR+ rather than trying to off menu order a LR RWD, even though I really wanted that extra range and faster supercharging...

Yeah. I was about three months late to get the $3200 sales tax exemption. If I had to do it again I would have waited for an SR+ with white interior. Even the AWD with white interior is cheaper now than my car was then lol ugh.

 

[acarney]

Any update that anyone is able to see? I'm still thinking the wording means the full out the door sales price, including any upgrades (paint, wheels, etc)....

However, I sure do hope I'm wrong and the "base" vehicle price is the only thing that has to be under $45k. Then I think any Tesla Model 3 would count (all seem to be billed as a Base Model 3 for $35,400 and then a line item for the upgrade to the Plus, AWD, Performance, etc)

I guess Department of Revenue would be the guys to call? I just worry talking to some front line phone person and if they actually know what they're talking about...

 

[PNWLeccy]

Only clue I've got so far is from a Tesla contact who says that her supervisor indicated that in other states, doc/dest fees typically don't count for tax incentive purposes. I'm operating under that assumption until it becomes clearer (hopefully) in a couple of days...

 

[acarney]

Only clue I've got so far is from a Tesla contact who says that her supervisor indicated that in other states, doc/dest fees typically don't count for tax incentive purposes. I'm operating under that assumption until it becomes clearer (hopefully) in a couple of days...

My rep hasn't specifically said if the doc/destination fee counted but did tell me only SR/SR+ would qualify, but he told me way back toward the start of July, so I'm not sure if they had any more specific info or were reading the same "unclear" information that we're seeing...

I guess I'll try calling the DOR and see what they say. I want to be able to jump on this because if Doc/Destination fee does NOT count there actually might still be a slight long shot of getting a LR RWD inventory car. Last search I did there were only a handful left that my rep could find that might come CLOSE to that $45k limit. However, I was trying to factor in the $1200 fee as well...

 

[jebinc]

My rep hasn't specifically said if the doc/destination fee counted but did tell me only SR/SR+ would qualify, but he told me way back toward the start of July, so I'm not sure if they had any more specific info or were reading the same "unclear" information that we're seeing...

I guess I'll try calling the DOR and see what they say. I want to be able to jump on this because if Doc/Destination fee does NOT count there actually might still be a slight long shot of getting a LR RWD inventory car. Last search I did there were only a handful left that my rep could find that might come CLOSE to that $45k limit. However, I was trying to factor in the $1200 fee as well...

Hello. Did you confirm that the threshold is the new car price and not the net of trade?