Out of state tractor sale

[gp1200x]

What's the process used to buy a tractor out of state with regards to sales tax? If it is purchased by an out of state person does it physically have to be delivered across the state border to avoid paying the sales tax?

I realize that if one is bought directly from Delaware or New Hampshire there is no sales tax anyway but many dealers in these states seem to be adding on costs.

There is probably for a cash deal, no financing. I believe that financing an out of state tractor may come back to haunt the buyer. Eample--buying a tractor from PA and living in NJ or NY.

This tractor is for homeowner use only, no business and no title registration for commercial use.

 

[MikeInEburg]

Most states require that you pay the sales tax yourself. With a cash sale there is little paperwork that may draw attention. That said, I just sent the great state of Maryland a check for sales tax due on an out-of-state sale. I find that it is just easier to play by the rules.
Mike

 

[Ductape]

With a cash deal and no financing...... as long as you are never needing to register it for use on a road, i'd say you'll have no problem. There are some states that are very agressive in collecting sales taxes, and seek sales records from dealers in surrounding states to see if any of their residents owe them tax. If it were me, and it were a cash deal...... i'd just buy it and only worry when the tax man showed up. Then i'd play dumb, which would be very easy for me. Like anything..... assess your risk and make your decision from there.

 

[Nuru]

Most states require that you pay the sales tax yourself. With a cash sale there is little paperwork that may draw attention. That said, I just sent the great state of Maryland a check for sales tax due on an out-of-state sale. I find that it is just easier to play by the rules.
Mike

Mike, if I may ask, you indicate an out of state sale, but are you meaning you made an out of state purchase? What actually happened?

 

[pitt_md]

FWIW: I live in Minnesota and bought a MX5000 Kubota from a dealer in WI with cash. They delivered it and I had to pay sales tax. I tried to get out of it but the dealer said they have to record the sale and that I would be required to pay the tax now or later.

 

[gp1200x]

I guess I will have to talk to the individual dealers and figure out how to handle it. I could always buy in Delaware or NH, pay cash and use another address I have...pretty hard to find me then.

 

[gp1200x]

Worse case is I have separate bills one for the tractor and one for all the other implements and I pay tax on the tractor only...that wouldn't bother me but paying for the implements does

 

[Ductape]

All i know is..... here in NH, our state is almost boastful about not having a sales tax to inadvertantly lure people from surrounding states to buy stuff here. I would be shocked to find out the state of NH had any hand in turning over info to other states when people shop here. Exactly why we have large malls just over the state line from Taxachusetts. There are plenty of folks who think you should just pay whatever tax you are asked to pay...... I'm not one of those people ! I don't feel the government spends my money more wisely than i do. I have to think you are creative enough to rent an address in NH if you need to to save yourself the sales tax. We all pay too much as it is............



(I guess i feel fortunate i don't need to worry about it!)

 

[DonWorrell]

Here is the problem at least in Tennessee. We don't pay sales tax we pay sales and use tax. So no matter where you buy whatever you owe 9.25% tax if you live in my area. There is a 7% sales tax and local option up to 2.25%. I think that is the split.

I am an auctioneer and am required to attend classes to keep my license up to date. Recently I attend a four hour class on sales tax. We were told how to handle sales tax issues. We were told by the taxation offcie that as auctioneers we are responsible to collect the tax unless we received proper paperwork stating the buyer is exempt from the tax. WE owed the state either the tax or enough exemption certificates equal to the sum of the sales. Unless the sales met certain exemptions.

At the end of the class the person started telling us stories about how they catch people who don't pay their tax. He stated many states have inter state agreements to co-operate in collection. He said often times when a business is caught on another charge the state will offer a reduced fine if they can offer names and address of those who purchase from other states. Then they run the name against tax collections and guess what if you didn't pay well the tax is one thing but the fine for not paying is another.

Now this is how it works in Tennessee. I don't understand any place elase. But I made an agreement with the tax man years ago. I won't cheat on my taxes and he won't audit me. So far we both have kept our bargain.

It an't worth the trouble to save a $1,000 or so in taxes.

Don

 

[woodlandfarms]

From what I understand they way the federal tax code reads is you must pay the state sales tax for the state the item is delvered to.

The internet has been ducking this issue, with fights going on on capital hill.

If you purchase a car, and take it across to another state, that state will hit you for the sales tax when you register the vehicle (assuming that the previous state has not charged you sales tax - if it has you can only be charged state sales tax once).

In some states the weigh stations will note your tractor, its destination, and send a note to the state tax auditor.

This issue really rears its head in our area. Washington is 8% and Oregon is 0%. If I want to purchase a new tractor in Oregon and have the dealer deliver in Washington it I get taxed. If I pick it up, or have a 3rd party pick it up, then I am responsible for paying the tax (should I choose to claim it).

Complicated and fun. Please enjoy the politics...

Carl