Sales tax on orders incorrect? (CO residents READ!)

[M0unt41nm4n]

I just checked my order documentation through the app and I noticed a huge delta in what Tesla is claiming on the sales tax for my location. My county (La Plata, CO) states they only take 2.9% sales tax on vehicles (the state amount) and will only add in the country tax of 2% more (4.9% total) if I take delivery in my county. When I ordered the truck it showed 2,9% correctly. But when I pull it up now, it’s actually showing 6.4% sales tax. I have no idea how they came up with that number.

Has anyone else noticed differences in sales tax that aren’t correct?

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[M0unt41nm4n]

So an update and interesting news for Colorado folks. Tesla is looking into the delta and they will fix it.

Here is Colorado state law. The state says that if you purchase the vehicle in the same county as you register, you will pay all county, local, special district, and state tax. But if you purchase the vehicle outside of your county, they can only apply use tax from the county/city that you purchase it as will as use tax from where you live in addition to state tax.

In my example, I pay the Colorado state tax of 2.9% and I live in La Plata county. I am taking possession in Gypsum, CO which is in Eagle county. Under law I additionally need to pay use tax for Gypsum, Eagle, and La Plata county. As luck would have it, none of those locations have use tax. So by law, I am only responsible to pay Colorado sales tax and thus 2.9%. If I had it home delivered, I would pay the $750 PLUS 2% tax which would be an extra $2,440 on top of that.

The moral of the story and tips for Coloradoans, is choose wisely where you want to pick up your Tesla inside the state. It could literally save you $1000s in sales tax.

For more information, read here:

https://tax.colorado.gov/sites/tax/files/documents/SUTT_Motor_Vehicles_November_2021.pdf

 

[M0unt41nm4n]

I’m in Douglas county but believe they’ll make me take delivery at the Littleton or Aurora location. How do I choose where to take delivery? Any recommendations?

call them up and tell them you want to take delivery in Littleton for tax reasons. They should hopefully be cool about it. I don’t know if it would change your delivery date… YMMV. When I called them they tried to get me to move it to Aurora (Arapaho county) where I would have to pay .25% use tax. I told them no… Gypsum for sales tax and the guy said “No problem… totally understand”

Use tax rate for cities and counties are in this document:

https://tax.colorado.gov/sites/tax/files/documents/DR1002_07-2022_V4.pdf

You can look where Tesla has locations and figure out your best pickup location to save you the most money.

For Doug cty it looks like 2.9% + 1% Use tax Doug Cty + .25% Arapahoe Cty. So 4.15%. You need to see if your city that you live in has any use tax.

Littleton is in Jeffco and has no use tax. So IIWY, I would do Littleton. So tax there would be 3.9% for you.

 

[cgladue]

i would kick at least 4 babies to only pay 2.9% tax

 

[M0unt41nm4n]

Just another tip… double check what they are trying to charge you. They attempted to overcharge me. Point it out to them to make the change. Otherwise if they overcharge you, you will have to file lots of paperwork to get it back from your county and I heard it’s not pleasant.

 

[Chris9702L]

Thanks for the info. I’m down in Colorado Springs. We have a 1.0% use tax so I’ll be calling to take delivery up in Littleton.
So if you pick up in Littleton you only pay the 2.9% state tax?

 

[Gigahorse]

Thanks for the info. I’m down in Colorado Springs. We have a 1.0% use tax so I’ll be calling to take delivery up in Littleton.
So if you pick up in Littleton you only pay the 2.9% state tax?

Wow yea those %s really add up on $120k following

 

[M0unt41nm4n]

Thanks for the info. I’m down in Colorado Springs. We have a 1.0% use tax so I’ll be calling to take delivery up in Littleton.
So if you pick up in Littleton you only pay the 2.9% state tax?

From what I saw, you pay 2.9% state tax + 1.23% El Paso County use tax. I couldn’t find use tax for COS… did you get that from the document above? COS wasn’t listed as having use tax. AFAICT if you get yours in Littleton you would pay 4.13% sales tax.

 

[Chris9702L]

I just saw 1.0% on a google search. So I would still pay 4.13% if I picked it up in either place? Wonder what it would be if I picked it up in Austin (don’t even know if I can do that)?

 

[DumpsterFire]

So an update and interesting news for Colorado folks. Tesla is looking into the delta and they will fix it.

Here is Colorado state law. The state says that if you purchase the vehicle in the same county as you register, you will pay all county, local, special district, and state tax. But if you purchase the vehicle outside of your county, they can only apply use tax from the county/city that you purchase it as will as use tax from where you live in addition to state tax.

In my example, I pay the Colorado state tax of 2.9% and I live in La Plata county. I am taking possession in Gypsum, CO which is in Eagle county. Under law I additionally need to pay use tax for Gypsum, Eagle, and La Plata county. As luck would have it, none of those locations have use tax. So by law, I am only responsible to pay Colorado sales tax and thus 2.9%. If I had it home delivered, I would pay the $750 PLUS 2% tax which would be an extra $2,440 on top of that.

The moral of the story and tips for Coloradoans, is choose wisely where you want to pick up your Tesla inside the state. It could literally save you $1000s in sales tax.

For more information, read here:

https://tax.colorado.gov/sites/tax/files/documents/SUTT_Motor_Vehicles_November_2021.pdf

Ahha! So this his how Colorado gets their EV rebate $$ back!! Clever!! ?

 

[M0unt41nm4n]

I just saw 1.0% on a google search. So I would still pay 4.13% if I picked it up in either place? Wonder what it would be if I picked it up in Austin (don’t even know if I can do that)?

Go by the document above as it’s a Colorado official tax document. No… if you picked it up in COS and you live in COS, you pay 2.9% state, 1.23% El Paso, 3.07% COS, and the 1% Pikes Peak RTA or 8.2% total. Get it in Littleton.

For Austin… don’t know… I think you would have to see how Texas laws apply and whether they can tax out of staters on sales/use tax.

 

[M0unt41nm4n]

Ahha! So this his how Colorado gets their EV rebate $$ back!! Clever!! ?

Oh…. No I get that also ?

 

[Chris9702L]

Go by the document above as it’s a Colorado official tax document. No… if you picked it up in COS and you live in COS, you pay 2.9% state, 1.23% El Paso, 3.07% COS, and the 1% Pikes Peak RTA or 8.2% total. Get it in Littleton.

Holy cow. I’m definitely getting it in Littleton. I think I owe you dinner for saving me a bunch of cash!

 

[Chris9702L]

But if you buy outside of where live you don’t pay the tax there but when you register the vehicle where you live won’t you get zinged for the tax at that point?

 

[M0unt41nm4n]

But if you buy outside of where live you don’t pay the tax there but when you register the vehicle where you live won’t you get zinged for the tax at that point?

No. Read Colorado State Law on the first link I posted that is specific to motor vehicles. It’s very clear in what can and cannot be taxed based on location. I’ll quote it:

In general, a motor vehicle sale is subject to all state and state-administered local sales taxes that apply to the location of the sale. For sales tax purposes, a motor vehicle sale generally takes place at the location the purchaser takes possession of the vehicle. If the seller delivers the vehicle to the purchaser at the purchaser’s location, the sale takes place at that location.

However, a motor vehicle sale is exempt from any sales tax imposed by the city, county, and/or special district(s) in which the sale takes place if both:

➢ the purchaser is a nonresident of the city, county, and/or special district(s) or has their principal place of business outside of the city, county, and/or special district(s); and

➢ the vehicle is registered or required to be registered outside of the city, county, and/or special district(s).

If the vehicle sale is exempt from any city, county, or special district sales tax, as described above, the purchaser must pay any applicable use tax imposed by the city, county, and/or special district in which the vehicle is registered or required to be registered. Any applicable use tax for motor vehicles must be paid to the county clerk prior to titling and registration.

that first link even had a table with examples.

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