Tesla sales bill is pulled
State senator yanks proposal to exempt out-of-state buyers fromtax if they pick up here
PALO ALTO — Out-ofstaters wanting to pick up their Tesla at the Fremont factory may want to wait for that California vacation.
A bill to allow Tesla customers from outside California to pick up a gleaming EV and waive state sales taxes has died. Bill sponsor Sen. Bob Wieckowski amended the proposal in favor of a measure to rescue a new housing development in the city of Santa Clara.
The original bill would have allowed Tesla customers from other states to travel to the company’s Fremont factory, pick up their vehicle and drive home without paying California sales tax. The vehicle buyers would still owe taxes in their home states, but would avoid
getting hit with California’s higher taxes. Senate Bill 680 was designed to encourage electric vehicle sales and state tourism.
But in June, Santa Clara officials requested an urgent bill to modify terms of a property sale between the city housing authority and the state, said Jeff Barbosa, spokesman for the state senator. The deadline for introducing new bills had passed, and Wieckowski, D-Fremont, decided to amend the Tesla bill as it moved forward in the As- sembly, Barbosa said. The amendment replaced the sales tax waiver with the Santa Clara proposal.
The new proposal extends the deadline for developing a six-acre parcel near Winchester and Stevens Creek boulevards, on the former site of the University of California’s Bay Area Research and Extension Center. The Assembly Appropriations Committee approved the Santa Clara bill unanimously Wednesday.
Wieckowski said the Santa Clara development was critical to provide affordable housing for seniors, veterans and families with low and moderate incomes. The project will include an urban farm, drawing on the site’s former agricultural use.
Santa Clara Deputy City Manager Tamera Haas said the bill was needed to bring the right mix of development to the site. The proposal now calls for 165 senior apartments, about 160 other apartments, including some set at belowmarket rates, and 34 market-rate townhomes, she said. “We were looking for creative ideas,” Haas said.
Barbosa said the senator would consider bringing the Tesla bill back next year. The Legislature finishes its session this month.
Tesla promoted the bill in an attempt to increase sales and provide a customer experience similar to other luxury brands such as Volvo and Mercedes-Benz. The European manufacturers invite customers to tour factories and company museums before driving away in new cars.
Tesla sells vehicles online and through retail shops. It has battled to set up stores in states that limit automakers from selling directly to customers. Tesla did not respond to a request for comment.