In state vs out of state

[cphilip]

We have sales tax exemption for farm use here in SC. I see nothing immoral about taking it.

I am not sure why that farm exemption would not carry across the boarder though. For instance if I bought something in NC I should also be able to get sales tax exemption there if I qualify for it here in SC... then it wouldn't really matter one way or another.

Travis from EA and I just had a discussion about something similar. Its kind of confusing. Different states make it difficult to do things across the boarder and some don't. Georgia for instance does not collect sales tax on trailers sold to people in SC. And Trailers do not need be registered in SC either. But I imagine NC would charge it anyway.

 

[mljenkins]

I will tell you to search this forum and others on the topic of state use tax. I bought my tractor in PA but live in WV and paid no sales tax at the time of the same. I turned it in on my state taxes as use tax. It’s a hard number to swallow but facing potential fines when the state catches it would be worse.

From what I read (please do your own research) if you have a loan the loan is registered with your state and some states use that to look for tax evasion.

If you are farm exempt in your state you wouldn’t pay taxes when purchasing out of state because it exempts you from your state’s taxes which is what you would owe. Note the claiming farm exemption when you don’t qualify as a farm is also tax evasion.

Just my 2 cents, I don’t want to ruin the party but I did a lot of reading on this before my purchase trying to find loop holes and there were no “legal” ones for me. I knew I would have a descent federal return before I purchased my tractor so that offset what I owed the state.

As I said you have to do your own research and make your own decision based on your potential exemption status and/or comfort with any associated risk.

Matt

 

[LightningCamaroGuy]

I say buy local unless you save noticeably by going away from your local dealership. Still my local dealer have quoted me the best prices I've seen for the tractors I'm looking at. Both JD and Kubota. The MF dealers have within a couple hundred dollars of the best price I've seen. Having a local dealer you've purchased through do warranty or other work for you will likely be a more enjoyable experience then bringing them a tractor that you purchased elsewhere. They are more willing to work harder and go the extra mile to help you if/when the need arises. JMO.

This video explains the benefits of buying from your local dealership. It's very good and I recommend watching it.
The Basics: Understanding Tractor Warranty - YouTube

 

[ultrarunner]

Some States only have a partial AG exemption... better than nothing.

This is why it is good to learn the facts ahead of time.

The Sales Tax rate varies a lot in my State due to local taxes... but, the State determines tax based on where you live and not where you bought.

Don't forget you might also be able to depreciate the cost of your tractor the percentage it is used for business... or in the case AG

We have some small wineries in the area... they started out on a shoe string but over the years are very legitimate... the combination of AG property and sales taxes and being able to write off equipment against income can be most beneficial...

 

[oosik]

In my thirty seven years here - I've purchased three tractors. All from the same dealership. Here in Ea WA we are not so fortunate to have multiple dealerships of the same brand within normal driving distances. Or some brands(JD is an example) are represented by the same dealership over a very wide area.

I must be old fashioned - I would not have the balls to buy a $50K NEW tractor in - say Montana - and then ask the local dealership in Spokane to provide service. To me - that is just not the way things work. If it were a tractor from a private party - well, then that is a different deal.

I do almost all my product research on-line - then purchase from a local dealership. Saves a whole lot of my time.

Recognize that I'm pretty remote and a trip into the "big" city(Spokane) is an EVENT.

 

[ID Corgi Ranch]

I must be old fashioned - I would not have the balls to buy a $50K NEW tractor in - say Montana - and then ask the local dealership in Spokane to provide service. To me - that is just not the way things work

I don't see why that's a problem. The local dealer is getting paid (either by you or for warranty work) and didn't have to do anything like purchase tractor inventory, pay a salesman to make the sale, pay administrative staff for paperwork, etc. He's getting paid well just for providing service. I'm not criticizing you for buying local and supporting your dealer...just providing another perspective. But there's more to making a successful business than just sales.

Let's face it. Online sales are here to stay and if your brick and mortar dealer was smart, he'd also be the online dealer for someone else from out-of-state. If dealers are going to compete they're gonna have to work for business both locally and from other areas. Because make no mistake...the dealers making money online are working for out-of-state business and they're getting it.

And, yes, I've owned a successful brick and mortar business (a gun store) and I've had to compete with online stores. When people bought guns online and asked me to do the transfer I was happy to do it. $25 bucks for a 2 minute phone call and 5 mins of paperwork. I'd do that all day over the hassle of purchasing and maintaining inventory.

Around my neck of the woods we have a MF, JD and Kubota dealers. All were well out of my price range or I couldn't get nearly as much tractor as I could buying another brand from out of state. I tried to work a deal from the MF dealer that I previously bought a GC1710 from. He took $250 off of list because "you haven't done a lot of business here before." Well, I just moved into the area/state 8 months before buying the tractor. I bought a TYM from a dealer in TX and asked the local Kubota dealer if they'd work on it for normal service. He said he'd be glad to...they could work on just about anything and would love to be my "go to" place for service.

 

[Dadnatron]

I must be old fashioned - I would not have the balls to buy a $50K NEW tractor in - say Montana - and then ask the local dealership in Spokane to provide service.

Most dealerships don't make much $$$ on the sell price of either tractor or auto themselves. They typically make their $$$ on the upkeep and repairs on those vehicles. I like buying local, because they are my neighbors, friends, and associates. The better 'they' do, the better 'I' do. However, on this one instance, it would be a numbers game. Depending on savings, I'd go elsewhere. But it is rare that dealerships are not close to one another, since they are usually only making a few $100 off the sell anyway.

By selling those vehicles... they insure lots on the road and hence lots of need for future repairs, which is where the real $$$ is for them.

 

[Oldoak]

I don't see why that's a problem. The local dealer is getting paid (either by you or for warranty work) and didn't have to do anything like purchase tractor inventory, pay a salesman to make the sale, pay administrative staff for paperwork, etc. He's getting paid well just for providing service. I'm not criticizing you for buying local and supporting your dealer...just providing another perspective. But there's more to making a successful business than just sales.

Well, I do see potential problems with purchasing out of state and expecting a local dealer to provide service (warranty service).

Don't expect the best service or timely service or the local dealer to go to bat for you if there may be a question of whether or not the warranty covers a particular repair. And you can forget about any service discounts, etc.

 

[ID Corgi Ranch]

^^ Then that's a dealer I wouldn't want to deal with. Do you actually think you're describing a reputable dealer with that statement?

 

[Piston]

I don’t see why it’s any different than someone who just moved to a new state with their brand new tractor they bought from their prior home. They’d need a new dealer for service, that they didn’t buy the tractor from. How is this any different?