http://electrek.co/2016/05/13/tesla-tourism-bill-factory-pick-ups-cales-tax-california/
‘Tesla tourism’ bill for factory pickups faces strong opposition in
California
[2016/05/13]  Fred Lambert

[image  / LiPo Ching/Bay Area News Group
https://electrek.files.wordpress.com/2016/05/tesla-tourism-e1463104457532.jpg
Tourists from China take photographs at the Tesla Factory complex in
Fremont, Calif., on Thursday, Jan. 28, 2016. (LiPo Ching/Bay Area News
Group)Tourists from China take photographs at the Tesla Factory complex in
Fremont, Calif., on Thursday, Jan. 28, 2016
]

Earlier this year, we reported on a new proposed bill in California to
eliminate the sales tax on new cars manufactured in the state for
out-of-state buyers. The bill aims to spur “industrial tourism” and
encourage people to come pick up their new Teslas at the automaker’s Fremont
factory without having to pay California’s sales tax.

The bill, which was proposed by Tesla and is sponsored by Sen. Bob
Wieckowski whose district is home to Tesla’s Fremont factory, is now facing
strong opposition as some legislators suggest it only aims at offering tax
breaks to rich people able to afford luxury vehicles.

To be clear, the out-of-state buyers would still have to pay sales taxes in
their home state where the cars will be registered, just not in California
where they come pick up the vehicles. The loss in revenue for the state
would be extremely marginal since California’s sales tax is often higher
than in most other states and therefore almost no one is coming to pick up
their Teslas at the factory if it isn’t going to be registered in
California.

State budget officials estimate the proposal would reduce revenue by only
$25,000 annually, according to the Mercury News. We are talking about only 2
or 3 people a year.

Now more people would be expected to do it if the new provision was adopted,
but bill sponsor Sen. Bob Wieckowski is convinced that revenue from the
industrial tourism would offset the cost.

Several luxury car brands in Europe offer the option to pick up your new car
at their factory and make an event out of it, which can include a factory
tour and a road-trip across Europe. They take care of a shuttle from the
airport to the factory, car insurance and registration for the duration of
your stay and offer a choice of packages included in the price of your
purchase for you to make an European road trip out of the first drive with
your new car.

You can drive back to your home in your new car, if geographically possible,
or drop the vehicle off at one of several “drop-off” points across Europe
and they will ship it to your home.

The program created a small tourism industry for car enthusiasts, but also
an interesting customer experience which has been especially good for the
brand loyalty of German automakers.

According to Wieckowski, Tesla hopes to create a similar program.

As an Assembly committee is scheduled to hear the proposal next, several
Senators are now voicing their opposition – via Mercury News:

Sen. Connie Leyva, D-Chino, said it would only benefit high-income,
out-of-state residents who don’t need tax incentives. Although she supports
the growth of the California electric-vehicle maker, she said, “I don’t even
know if anyone in our district even owns a Tesla.”

If the bill was to pass, an out-of-state buyer would be given a California
tax waiver, as long as the new vehicle is registered in another state within
30 days. The buyer would then be liable for taxes in their home state.
[© electrek.co]



http://www.bmwusa.com/Standard/Content/Explore/Experience/EuropeanDelivery/PickUpYourBMW/PickUpFactoryTours.aspx
European Delivery - Pick Up Your BMW - Factory Tours
Customers that pick up a vehicle at the BMW Welt can participate in a
factory tour as part of their delivery experience. Reservations are
recommended; ...




For EVLN EV-newswire posts use: 
http://evdl.org/evln/


{brucedp.150m.com}

--
View this message in context: 
http://electric-vehicle-discussion-list.413529.n4.nabble.com/EVLN-Tesla-industrial-tourism-bill-for-tax-free-factory-pickups-BMW-style-tp4682084.html
Sent from the Electric Vehicle Discussion List mailing list archive at 
Nabble.com.
_______________________________________________
UNSUBSCRIBE: http://www.evdl.org/help/index.html#usub
http://lists.evdl.org/listinfo.cgi/ev-evdl.org
Read EVAngel's EV News at http://evdl.org/evln/
Please discuss EV drag racing at NEDRA (http://groups.yahoo.com/group/NEDRA)

Reply via email to