Sponsored

Sales Tax Impact Is Murky For Normal As Rivian Sales Begin

Lil'O Annie

Well-Known Member
First Name
Becky
Joined
Dec 29, 2018
Threads
61
Messages
477
Reaction score
1,364
Location
E. Washington State
Website
www.youtube.com
Vehicles
R1T LE/LG/FE, 2022 Lariat Lightning
Occupation
Farming, semi-retired

Blueassassin

Well-Known Member
First Name
Allen
Joined
Apr 5, 2021
Threads
30
Messages
1,433
Reaction score
2,636
Location
il
Vehicles
LE R1T, Hummer H1, Lotus Elise
Occupation
Equipment Manager
Clubs
 
All that pops in my head when I read about the laws about dealers and not being able to sell Rivian or Tesla in some states is "corruption" how did we get here and how is this not a huge red flag that it should be shut down. we have new American companies that want to build and sell here and we treat them worse than Kia.
 

rob0115

Member
First Name
Robert
Joined
Mar 20, 2021
Threads
0
Messages
16
Reaction score
15
Location
Monmouth County, NJ; Marco Island, FL
Vehicles
Tesla Model S, Tesla Model Y, Ford Raptor
Occupation
This and that
Im guessing this will get solved quickly when every state wants to collect sales tax on them when a resident buys one.
 

Gshenderson

Well-Known Member
First Name
Greg
Joined
Sep 28, 2019
Threads
13
Messages
1,229
Reaction score
2,768
Location
Park City, UT / Kemmerer, WY
Vehicles
2015 Tesla S 85D, 2019 4Runner TRD Offroad, R1T
Im guessing this will get solved quickly when every state wants to collect sales tax on them when a resident buys one.
In most states, that sales tax is collected by DMV when you title and register the car. They aren’t losing any money on this. I abhor the dealer laws, but a sales tax argument is not going to win that battle.
 

rob0115

Member
First Name
Robert
Joined
Mar 20, 2021
Threads
0
Messages
16
Reaction score
15
Location
Monmouth County, NJ; Marco Island, FL
Vehicles
Tesla Model S, Tesla Model Y, Ford Raptor
Occupation
This and that
In most states, that sales tax is collected by DMV when you title and register the car. They aren’t losing any money on this. I abhor the dealer laws, but a sales tax argument is not going to win that battle.
Yes I left that detail out but that’s correct. I’d I buy Rivian in IL and pay tax when I go to register it again in NJ I’ll pay it again (Theoretically). This will Hamper sales and as you said deal with the franchise laws separately.

Tesla had to shut down sales in NJ years ago because of the dealership franchise laws then Gov Christie worked with the legislature to allow Tesla to sell. I’m sure that will work just as well for rivian, at least in NJ.
 
Last edited:

Sponsored

emoore

Well-Known Member
Joined
Nov 29, 2020
Threads
2
Messages
2,442
Reaction score
2,527
Location
Colorado
Vehicles
2022 R1T
Yes I left that detail out but that’s correct. I’d I buy Rivian in IL and pay tax when I go to register it again in NJ I’ll pay it again (Theoretically). This will Hamper sales and as you said deal with the franchise laws separately.

Tesla had to shit down sales in NJ years ago because of the dealership franchise laws then Gov Christie worked with the legislature to allow Tesla to sell. I’m sure that will work just as well for rivian, at least in NJ.
Why would you have to pay sales tax in Il and NJ? I bought a car out of state and didn't have to pay sales tax in OH (where I bought the car) and CA (where I lived). Only paid tax in CA when I registered the car.
 

rob0115

Member
First Name
Robert
Joined
Mar 20, 2021
Threads
0
Messages
16
Reaction score
15
Location
Monmouth County, NJ; Marco Island, FL
Vehicles
Tesla Model S, Tesla Model Y, Ford Raptor
Occupation
This and that
Why would you have to pay sales tax in Il and NJ? I bought a car out of state and didn't have to pay sales tax in OH (where I bought the car) and CA (where I lived). Only paid tax in CA when I registered the car.
That’s my point no one would. I’m not sure if you read the article but they were discussing the murky tax situation of deliveries in IL vs state of residence. My point is that will get cleared up and sales tax will be paid locally and specifically at the time of registration in most states.


from the article.

Will transactions be recorded as direct sales from the factory here in Normal? Or will they be recorded as sales in the locations where customers take delivery?

I believe it will be quickly solved that it will be state of residence.
 

emoore

Well-Known Member
Joined
Nov 29, 2020
Threads
2
Messages
2,442
Reaction score
2,527
Location
Colorado
Vehicles
2022 R1T
That’s my point no one would. I’m not sure if you read the article but they were discussing the murky situation of deliveries in IL vs state of residence. My point is that will get cleared up and sales tax will be paid locally and specifically at the time of registration in most states.
Ok that makes sense. I did read the article but I don't think you can charge sales tax until you register the car and since it won't be registered in IL then they can't charge you sales tax. It happens at most dealerships since they handle all the registration but they don't have to. You can do all that yourself if you want. I know IL isn't know for always being on the up and up (I grew up there) but they can't charge you sales tax if you don't live there.
 

rob0115

Member
First Name
Robert
Joined
Mar 20, 2021
Threads
0
Messages
16
Reaction score
15
Location
Monmouth County, NJ; Marco Island, FL
Vehicles
Tesla Model S, Tesla Model Y, Ford Raptor
Occupation
This and that
Ok that makes sense. I did read the article but I don't think you can charge sales tax until you register the car and since it won't be registered in IL then they can't charge you sales tax. It happens at most dealerships since they handle all the registration but they don't have to. You can do all that yourself if you want. I know IL isn't know for always being on the up and up (I grew up there) but they can't charge you sales tax if you don't live there.

I edited my post after you quoted but put in a quick excerpt as to the main point.
 

2021R1T

Well-Known Member
Joined
Feb 23, 2021
Threads
0
Messages
77
Reaction score
122
Location
Golden
Vehicles
P3D
I bought new car in CA last year and had to pay CA sales tax. Period. I then drove the car to our AZ property and titled it in AZ. I did not pay the sales tax in AZ. I am pretty sure had I tilted at our CO home I would not paid CO sales tax either. The dealership protections need to go away. You should be able to buy where and when you want with one tax liability. I would have certainly preferred to pay tax at home but glad I did not have to pay twice.
 

Sponsored

DucRider

Well-Known Member
First Name
Gary
Joined
Oct 21, 2019
Threads
17
Messages
1,652
Reaction score
3,143
Location
ORegon
Vehicles
Polestar 2, Ioniq, R1S
The dealership protections need to go away. You should be able to buy where and when you want with one tax liability.
The sales tax issue is completely unrelated to the dealership/direct sales model. It is the various States that set the policies and get 100% of the money. None of it goes to the dealer and tracking and sending it to the State is something they would be glad not have to do.
As an example, CA collects sales tax no matter where you register the car if it is delivered in the State. Only if it shipped by carrier or otherwise delivered outside of CA can the dealer file a set of forms (including some from the delivery agent) justifying why they did not collect the tax and owe it to the State of CA.
 

Jay

Well-Known Member
First Name
Vicky
Joined
Jan 30, 2020
Threads
16
Messages
240
Reaction score
328
Location
Austin
Vehicles
Subaru Ascent
We don't have to pay a penny to Illinois. I can assure you atleast for Illinois.?

I personally bought my wife's cars in Chicago and drove it to our home and paid local sales tax per my zip code while registering at dmv.

Couple of my friends did the same.
 

StevieD

Active Member
First Name
Stephen
Joined
May 26, 2020
Threads
0
Messages
43
Reaction score
34
Location
Florida
Vehicles
2019 RAM Longhorn, Cancelled R1T Reservation
Occupation
Retired - Living the Dream!
A few years ago, I traded my car out for a Dodge Durango while I was in Utah. They gave me a transit plate and collected Florida license fees and sales tax. When I got back to Florida, DMV already had the title, registration, and plates ready for me. Later, the Utah dealer sent me a check for excess payment.
Sponsored

 
 




Top