Sales Tax?? Out of State Purchase.

[namesray]

Thinking about purchasing a tractor from one of two out of state dealers. Both dealers claim that there is no sales tax if they deliver out of state. I live in Pennsylvania. How "should" this purchase be handled?

 

[Piperflyer]

I live in NY. and bought a tractor in NH. and never had to pay any sales tax for the purchase.

 

[murphy1244]

They won't charge the tax. That does not mean you don't owe the tax.

 

[Deerherd]

Thinking about purchasing a tractor from one of two out of state dealers. Both dealers claim that there is no sales tax if they deliver out of state. I live in Pennsylvania. How "should" this purchase be handled?

This might help on what you "should" do.

Use Tax

In NY you also "should" submit form ST-140 with your check for sales taxes on purchases out of state. On a $20,000 tractor that would be a savings of $1700.00 on NY's 8 1/2% rate. If I hadn't paid it I probably wouldn't post that fact on a public forum.

 

[DB Pilot]

The state wants you to be confused and worried about owing them money. I recommend the out of state purchase and delivery to you. As long as the BATF (fun police) doesn't add tractors to the list you will be fine. Rule one (1) never volunteer.

 

[MoKelly]

The state wants you to be confused and worried about owing them money. I recommend the out of state purchase and delivery to you. As long as the BATF (fun police) doesn't add tractors to the list you will be fine. Rule one (1) never volunteer.

There is no question tax is owed on the purchase of the tractor. If you did the same thing with a car, you would have to pay the tax in order to get a title and license. As tractors do not have titles or licenses, there is no forced way for the state to collect the tax.

Just because you most likely will not get caught does not mean it is the correct thing to do.

Good luck.

MoKelly

 

[George2615]

Not sure about PA but in NY if you purchase out of state you are supposed to report the sale / purchase on your state income tax form so the state can collect sales tax. Farmers may have an tax exemption form to fill out. Whether you claim the purchase and pay sales tax to your state is up to you.

 

[GManBart]

The state wants you to be confused and worried about owing them money. I recommend the out of state purchase and delivery to you. As long as the BATF (fun police) doesn't add tractors to the list you will be fine. Rule one (1) never volunteer.

I always thought Rule one (1) should be "Obey the law"...silly me.

 

[KennyG]

I always thought Rule one (1) should be "Obey the law"...silly me.

I used to think that also. After a couple of experiences with tax authorities where it was clear they didn't really care about obeying the law, just draining my pockets, I've changed my mind.

 

[Bird]

You usually hear about how bad the IRS employees are, and with any group of that size, I'm sure they have some bad ones. But I've had personal experience with any of them only once, many, many years ago when I was a young clerk in the Post Office. At tax time, I figured I owed more than I had, so I went to the IRS office to inquire about the possibility of a payment plan. Instead, the IRS employee asked some questions, refigured my tax return, and even came up with a small refund instead of me owing them.:shocked: