Paying Tax

[jfakerj]

I live in WA state and have found the tractor I would like in oregon. It's used, no warranty(just ran out), 300hrs, and the tractor's from a private party(original owner). I must finance in order to purchase.

Does any one know if the lender turns in any paper work to the state if the tractor is listed on the loan or should I take a second on my home and buy the tractor outright.

If I buy this tractor in Oregon and pay no tax I'll save almost 30% over buying a new one here.

If I have to pay tax on the purchase I don't know if it would be worth it. That would cut the savings to just below 25% and is more than I want to spend. For that matter the used one is more than I want to spend but I can't find anything decent for any less $.

Does anyone know about this tax thing.

Jerry

 

[jyoutz]

Far as I know, out of state purchase of AG equipment, means that you pay no tax (new or used). Kinda makes out of state purchase a big advantage. When I purchased my tractor (in-state), I had my out of state father-in-law buy the machine. Then of course he sold it to me. Kind of sleazy, but legal.

 

[TWINKLE_TOES]

jfakerj,

Scruffy had a post a while back on how the states were putting the sneak on out of state tax evaders. I think it was posted under "Interest to all". Remember pre I-610 where the fella got busted in Wa. for licensing his $400,000 dollar motor home in Oregon. I believe the Governor now has a new residence./w3tcompact/icons/smile.gif I wouldn't guess the number of ways they may catch up to you on an out of state major purchase without paying the tax. /w3tcompact/icons/frown.gif

 

[jyoutz]

This is not the same thing as the licensing. Legally, if you purchase AG equipment in a state that you don't reside in, sales taxes do not apply. It doesn't make sense to me, but that is clearly the law.

 

[dullpain]

Don't know what the law is there?? In Tennessee agricultural equipment (tractors, trailers, implements) are tax exempt if you farm. I use the word FARM loosely. The state has a form you fill out for this purpose. I would check with your state revenue dept, and/or agriculture dept. web site to see if they have this exemption. 5 acres may just qualify you? If you have to have livestock to qualify buy a goat and keep it 4 or 5 months then bar bq him.

 

[TWINKLE_TOES]

jyoutz,

<font color=blue>Legally, if you purchase AG equipment in a state that you don't reside in, sales taxes do not apply. It doesn't make sense to me, but that is clearly the law.</font color=blue>

I'm not sure anything is all that clear in this area./w3tcompact/icons/frown.gif

This link is one of two provided in Scruffy's post "Interest To All".

I agree there is a difference between excise tax and sales tax. In this instance the motor home was licensed in Oregon to avoid the sales tax. It does point out the effort the state will expend to collect taxes. In the case of used equipment there may be some wiggly room, but in Wa. the state collects sales tax every time a licensed vehicle is sold or resold.

http://www.tractorbynet.com/forumfiles/8-22914-article1.JPG

 

[DVerbarg]

In Illinois the "Sales Tax" is in reality a "Retailer's Occupation Tax". It is a tax on sales that retailers make. If you buy something from a private individual who is not engaged in the "business" of retailing then there is no tax. If you buy from a retailer out of state then you owe a "use tax". Based on my knowledge of Illinois law (as a retailer) you would not be liable for any tax since you are buying (trading) from a private individual who is not engaged in the business of retailing. If you state has licensing of tractors like autos are licensed then that would be a different issue.

DaveV

 

[jfakerj]

From what I've was told by a kubota dealer, if the tractor is bought in WA state from a private party or from a private party in onther state that has sales tax there is no tax due on the puchase since sales tax has already been paid on the tractor once. But if there has never been sales tax paid on it(in a state with no sales tax) - tax is due when bring the tractor into this state.

Jerry