Electric cars to be sold in Menlo Park
Original post made on Sep 3, 2007
Read the full story here Web Link posted Sunday, September 2, 2007, 10:04 AM
on Sep 3, 2007 at 4:51 pm
Shame we couldn't get this dealership. There is an empty dealership on ECR in Palo Alto. Shame, because from the popularity of Prius in PA, I feel sure that Tesla will be similarly popular and now the PA's spending on Tesla will generate tax for Menlo Park rather than keeping it here in PA.
on Sep 3, 2007 at 9:03 pm
Maybe PA loses the sales tax, TUS. But maybe not. It isn't clear to me that the sale transaction will actually happen in MP. With typical car makers, there is the OEM (say Ford) and dealers who are local businesses. So the dealer buys the car from the OEM and resells it. Not clear that Tesla is doing that; they may own their showrooms and sell directly from the factory to the customers. So sales tax would be paid in San Carlos, where the factory is.
I don't know if that is the case or not, but if I were Tesla, that's probably how I'd do it...
Also, where would they go in PA? The old Volvo store on ECR at Charleston? Lot is probably too small, and location only so so - even Volvo moved when they had the chance to take over University Ford's location next door.
on Sep 7, 2007 at 9:16 am
Interesting, Fred. So does that work for retail stores as well? Can't they also sell direct from the factory to customers, and avoid taxes?
For example, could Home Depot call their store a showroom? Since their headquarters is in Georgia, could they avoid paying CA state and local tax?
Are the rules different for cars? Or different for state vs. local taxes?
Thanks for explaining!