How to Fix Sales Tax Issue

[TromboneAl]

We live outside the city limits of a town that adds a .75% sales tax to purchases.

We bought our Tesla, and paid this .75% increment. We have a notarized statement from the town manager that we shouldn't be charged this amount.

Who do I send this to to get our refund? We've done it in the past, but we usually ignore it because it's a small amount.

 

[Montecfo]

Check with the city tax collector's office. There should be a form to file to claim a refund.

 

[rk911]

if the tesla dealer is inside the town limits i would think you would owe the tax.

 

[pb4uski]

if the tesla dealer is inside the town limits i would think you would owe the tax.

+1 We have adjoining towns that have sales tax surcharges in addition to the state sales tax and when we shop at stores in ose adjoining towns we pay the sales tax surcharge.

I'm surprised that the town manager said that you shouldn't be charged the surcharge.

 

[REWahoo]

I don't think Al purchased from a dealer in the town in question but from Tesla online. Like when purchasing something from Amazon, he should be charged the sales applicable to his place of residence, and while his mailing address may be the town in question, he lives outside their taxing jurisdiction per the affidavit.

 

[CRLLS]

I don't think Al purchased from a dealer in the town in question but from Tesla online. Like when purchasing something from Amazon, he should be charged the sales applicable to his place of residence, and while his mailing address may be the town in question, he lives outside their taxing jurisdiction per the affidavit.

I had a situation with Amazon where they were charging me the town tax based on my Zip Code. When I realized it, I called Amazon and they corrected my tax rate in their system.

In TA's case, if the dealer is not within the city limits, there should be a way to get the tax back by filing some form, probably with the City who eventually received the tax monies rather than the dealer.

When I bought a car in a different county some years back, The tax charged by the dealer was l the lower local rate. I told them I was subject to my county's tax. They told me they had no way of applying that tax, so I missed having to pay my local county tax. YMMV.

 

[pb4uski]

I don't think Al purchased from a dealer in the town in question but from Tesla online. Like when purchasing something from Amazon, he should be charged the sales applicable to his place of residence, and while his mailing address may be the town in question, he lives outside their taxing jurisdiction per the affidavit.

I see... that makes sense then. In that case I would think that the town must have some form to file a claim for a refund.

 

[mountainsoft]

if the tesla dealer is inside the town limits i would think you would owe the tax.

I don't remember where Al is located, but here in Washington state sales tax is based on the buyers location, not the seller. They changed this several years ago, which really complicated tax calculations for a small business like mine. Previously I could just use my local tax rate for all in-state sales, but now I have to figure out the tax rate at the buyers location. It's not easy to do as one zip code can have multiple tax rates depending on whether you're in city limits, or even which side of the street you're on. Thankfully, the vast majority of my sales are out-of-state, so I just absorb the sales tax into the sale price and pay it at the end of the year (which oddly enough is based on my local tax rate).

 

[braumeister]

I used to live in a ZIP code that straddled two counties with different tax rates. I would often get an additional drop-down box after entering my ZIP to select the appropriate county for sales tax calculation. Not a big deal for a large company.

 

[TromboneAl]

I got the car from a Tesla center 300 miles away. They confirmed that the sales tax is based on the buyer's location.

I have the filled out form from the town manager (the population is 350, BTW).

What I need to know is where to send it. I know from past experience that the town will not pay us the money ($475). I don't recall what I did last time.

 

[REWahoo]

Al, since sales taxes are collected by the state and then distributed to the appropriate taxing entity, there should be a state agency to contact to get your refund.

 

[REWahoo]

Maybe here?

https://www.cdtfa.ca.gov/taxes-and-fees/refund-general.htm

 

[Chuckanut]

hankfully, the vast majority of my sales are out-of-state, so I just absorb the sales tax into the sale price and pay it at the end of the year (which oddly enough is based on my local tax rate).

I noticed that one big NY camera and tech seller is doing that. B&H Photo has their Payboo card. Buy using their credit card and they rebate the sales tax to the customer. Yes, they do forward the sales tax to the appropriate state.

Given that I live in an area with a high sales tax - about 10%- that is a nice benefit.

 

[Qs Laptop]

I got the car from a Tesla center 300 miles away. They confirmed that the sales tax is based on the buyer's location.

I have the filled out form from the town manager (the population is 350, BTW).

What I need to know is where to send it. I know from past experience that the town will not pay us the money ($475). I don't recall what I did last time.

Tesla made the error. Tesla has your money. Tesla likely hasn't paid the local government as yet. I say go after Tesla.

 

[rk911]

I see... that makes sense then. In that case I would think that the town must have some form to file a claim for a refund.

+1. bet it'll take longer, a lot longer, to get the refund than it did to pay it in the first place.