Dealers?

[jwcinpk]

Do tractor dealers pay tax on inventory at years end like car dealers do?

 

[Bird]

I would think it would depend on which state you're talking about. I assume tractor dealers pay such a tax in Texas, but only because I know RV dealers do (or at least did several years ago).

 

[Farmwithjunk]

Do tractor dealers pay tax on inventory at years end like car dealers do?

You're in Kentucky right? Yes, they pay tax on inventory, 1 Jan.

 

[GLLinMO]

I think they do in Missouri too. A large used car deler in twon always has an empty lot a few days before new years day, then a few days latter lot is full. Would not be surprised if they are "hidden" somewhere. This outfit would do that.

That said - i do not see any efforts from local tractor dealers to make any "year end deals" on new tractors.

 

[jwcinpk]

That's good to know FWJ! I'm heading up to the local Mahindra dealer Monday to try to make best deal on that 7010 I've been kicking the tires on for too long now.

 

[Farmwithjunk]

That's good to know FWJ! I'm heading up to the local Mahindra dealer Monday to try to make best deal on that 7010 I've been kicking the tires on for too long now.

The contractor I work for buys a lot of Caterpiller equipment. Wayne Supply, the big Cat dealer in Kentucky has their home office in Louisville. They have millions of dollars in inventory stored there. Until recent years, they would haul most of the equipment to Indiana before the end of the year then haul it back after Jan 1st. At that time Indiana taxed on inventory on hand at March 1st. Apparently there was enough savings in dodging taxes to warrant hauling all those 'dozers, excavators, pans, rollers, payloaders, ect, back and forth.

 

[Bird]

I had no idea what the other states did, but I know of an RV dealer (not longer in business) who used to had a place in Oklahoma and one in Texas. So that week between Christmas and New Years, the employees were busy moving RVs from Texas to Oklahoma and then back the 2nd and 3rd of January. I don't know whether Oklahoma doesn't have such a tax, has a lower tax rate, or taxes inventory on a different date.

 

[Aquaman]

I can't decide which is more questionable: A-Playing musical parking spots to dodge taxes, or B-governments imposing inventory taxes in the first place.

 

[rback33]

I can't decide which is more questionable: A-Playing musical parking spots to dodge taxes, or B-governments imposing inventory taxes in the first place.

I must say it is a close race in my mind. I guess... the tax dodger wins (loser?) in my mind. The law is the law, like it or not...

 

[Farmwithjunk]

I must say it is a close race in my mind. I guess... the tax dodger wins (loser?) in my mind. The law is the law, like it or not...

At the time the CAT dealer I spoke of was moving equipment back and forth, it WASN'T a violation of tax laws. It was just how things were done then. Anyone who runs a competitive business does whatever they need to do to lessen tax burdens. Under normal circumstances, we usually do so as individuals also. No moral oe ethical victory in giving away ones hard earned income, so long as that's done in compliance with the law.