Ohio taxes on out of state purchase?

[jcims]

Hi Folks,

If I purchase a tractor out of state and have it delivered, no sales tax needs to be collected. However, am I still liable to the state of Ohio for some kind of tax on the purchase? Use tax or sales tax or something? I would be financing the purchase if that makes a difference.

Any other Ohioans here have experience with this?

Thanks!

 

[nickel plate]

Can't answer for your state but just this year, California has added a new question to their tax form: (paraphrased) "Did you purchase anything out of state over the internet during this tax period and had delivered into California? If so, what is the value........"

 

[MMagis]

I'm pretty sure you would be required to pay the "use" tax. I would check with a professional to be certain.

 

[Storm56]

For what it is worth, I was in the market for a new tractor this year and found one in Ohio that I was interested in. I am from PA. The dealer told me he did not have to collect any sales tax. That was last month. Dealers from NY and NJ told me the same thing. Now this was on a utility tractor, do not know if that makes a difference.

 

[rjkobbeman]

For what it is worth, I was in the market for a new tractor this year and found one in Ohio that I was interested in. I am from PA. The dealer told me he did not have to collect any sales tax. That was last month. Dealers from NY and NJ told me the same thing. Now this was on a utility tractor, do not know if that makes a difference.

A seller not being required to collect, does not mean there is no tax liability. It just means that the seller is not required to collect it.

Whether or not you choose to account for it and pay it yourself, is up to you. You may be OK or you may be required to pay. You have to check with your state.

If PA has sales tax, chances are you are required to pay. Often, it is called "use tax".

 

[ray66v]

Hi Folks,

If I purchase a tractor out of state and have it delivered, no sales tax needs to be collected. However, am I still liable to the state of Ohio for some kind of tax on the purchase? Use tax or sales tax or something? I would be financing the purchase if that makes a difference.

Any other Ohioans here have experience with this?

Thanks!

My understanding is: Ohioan's are liable for sales tax, on retail out of state purchases, where no tax was collected. Or, if less was collected than you would have payed in Ohio, you owe the state the difference. You are to confess, and pay, when you file your state income tax.

 

[BXpanded]

My understanding is: Ohioan's are liable for sales tax, on retail out of state purchases, where no tax was collected. Or, if less was collected than you would have payed in Ohio, you owe the state the difference. You are to confess, and pay, when you file your state income tax.

Same in North Carolina.

 

[Storm56]

A seller not being required to collect, does not mean there is no tax liability. It just means that the seller is not required to collect it.

Whether or not you choose to account for it and pay it yourself, is up to you. You may be OK or you may be required to pay. You have to check with your state.

If PA has sales tax, chances are you are required to pay. Often, it is called "use tax".

You may be correct. I know it works that way on a vehicle. When you register it you have to show that tax was paid. If it was a lower percent than PA tax, you are required to pay the difference. I have never heard of it being applied for purchases that are not subject to some sort of registration, but that does not mean there is not a law that I am unaware of. In filing my state income tax I have not ever noticed an entry for such activity.

 

[rjkobbeman]

You may be correct. I know it works that way on a vehicle. When you register it you have to show that tax was paid. If it was a lower percent than PA tax, you are required to pay the difference. I have never heard of it being applied for purchases that are not subject to some sort of registration, but that does not mean there is not a law that I am unaware of. In filing my state income tax I have not ever noticed an entry for such activity.

It is somewhat obscure. Only recently have some states started making it more obvious on their returns. Of course, some states don't have it... you'll have to check.

For years everyone has thought that "mail order" is tax free. That is not really the case. It just meant that the seller was not required to collect sales tax on purchases originating in a state that the seller did not have a physical presence. In those cases, the burden was put on the buyer to be honest and pay the state on their own. States generally didn't (don't) do much to collect. However with the Internet boom years ago states have started to see more and more tax revenue go uncollected.

A few years back I recall a push to "tax Internet sales." This got the general public all up in arms. What was misunderstood was, this was not implementing a new tax, it was merely putting the collection burden on the seller. Of course, for those (of us) that have never bothered paying that "use tax", it feels like a new tax.

Some states (I think NY is one of them) have agreements with other states that require retailers to report sales to the other states' taxing authority. This is to make sure the taxes are being paid.

What a mess!

 

[whodat526]

yes u have to pay a usage tax on anything bought out of state