PALO ALTO — The next hot California vacation package could include the surf, wine country and a tour of the Tesla Motors factory.
A Bay Area lawmaker’s bill would give tax breaks to out-of-state customers picking up their Teslas at the electric-vehicle maker’s Fremont factory.
Sen. Bob Wieckowski said Senate Bill 680 would encourage tourism and apply to Tesla and other, green-friendly vehicle makers. “Tesla is an exciting car,” said Wieckowski, D-Fremont. “It’s cool, cutting-edge manufacturing. They want to come and see it.”
But opponents say buyers of the luxury car don’t need any more breaks.
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.”
Under current law, an out-of-state car buyer who comes to California to pick up their car pays California sales tax on their purchase. The buyer may receive a credit on their home state taxes, but since California generally has a higher tax rate, out-of-state buyers pay more here than they would at home. A car purchased in Alameda County, for example, would be subject to a 9.5 percent sales tax, or $8,550 on a $90,000 Tesla.
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