Buying out of state - sales taxes

[djefferis]

Curious- anyone know rules on buying out of state for Ohio resident and sales tax (I.E. internet sale from Indiana and having product shipped to Ohio).

No states without sales tax that would make this a cost effective shipment probably, but thinking if I buy from an internet vendor without a physical warehouse in Ohio I don稚 pay taxes, so wouldn稚 this apply to equipment as well?

Thanks in advance for suggestions

 

[quicksandfarmer]

Ohio Department of Taxation > sales_and_use

You owe the tax whether or not the seller is obligated to collect it from you. This is becoming a bigger issue with the states, you might find that Ohio is eager to collect it from you.

 

[Deere Dude]

I bought a tractor from Missouri and I live in Wisconsin so save on sales tax because they didn't collect any. When it was time to do taxes they asked about that and said I had to pay a "Use Tax" which is basically the same as sales tax in my home state.

I could have lied and said no but that isn't me. Anyway I had to pay the tax and also a penalty on top of it because I paid to late; don't recall the exact times and circumstances, but I do remember the penalty. Maybe I waited two years. But anyway, if I would have waited an extra year the penalty would have been much greater. It was something like 12%.

 

[Piston]

A friend of mine lives in Ohio and bought a new JD from a dealer just over the border in PA. He did not have to pay sales tax.

Have you checked with Messicks? It might surprise you how cheap it is to ship a new tractor from them.

 

[David_Kb7uns]

Move to Oregon no sales tax.

David

 

[Tomtint]

I believe there are several sales tax threads on this forum. But we are in Mass, which has a 6.25% sales tax. New Hampshire is 65 miles away with no sales tax. .. if I were in the market for a non registered large purchase... I just may drive up and look around a bit. States with no sales tax do not want to be tax collectors for neighboring states that do. It is of no benefit to them to do so. Mass is working hard to get NH to disclose all sales to Mass residents.. I'm not sure if NH is obligated to do so or not.

 

[Rock Crawler]

I just looked at and got a price from Ohio (I live in Pennsylvania) and they showed 7.25% sales tax. I told them that I am from PA and live in BEaver County and have a 6% sales tax... they told me that this did not matter. I have to pay the higher 7.25% Ohio tax if I buy there.

That makes me wonder, does PA not want the 6% tax as well? Should I pay the 7.25% and have a risk that PA wishes to get the 6% as well? Should I stay away from tax happy Ohio and buy in my state so that I can not get caught up paying both states?

I've bought cars out of state and not paid sales tax at the time of purchase, and then when I took the paperwork to a notary to get PA registration I pay the 6% tax there.

Then you have Bruno's who will ship you the tractor tax free, that would be a safer bet since it would be like buying a car out of state. Buy and get the item, report the purchase to PA at the end of the year and be limited to paying just the PA 6% sales tax.

But that opens a new issue... buy cheaper from Bruno's and potentially be shunned by your local dealer should you need help/support under warranty.

 

[aczlan]

I just looked at and got a price from Ohio (I live in Pennsylvania) and they showed 7.25% sales tax. I told them that I am from PA and live in BEaver County and have a 6% sales tax... they told me that this did not matter. I have to pay the higher 7.25% Ohio tax if I buy there.

That makes me wonder, does PA not want the 6% tax as well? Should I pay the 7.25% and have a risk that PA wishes to get the 6% as well? Should I stay away from tax happy Ohio and buy in my state so that I can not get caught up paying both states?

I've bought cars out of state and not paid sales tax at the time of purchase, and then when I took the paperwork to a notary to get PA registration I pay the 6% tax there.

Then you have Bruno's who will ship you the tractor tax free, that would be a safer bet since it would be like buying a car out of state. Buy and get the item, report the purchase to PA at the end of the year and be limited to paying just the PA 6% sales tax.

But that opens a new issue... buy cheaper from Bruno's and potentially be shunned by your local dealer should you need help/support under warranty.

Generally speaking, if you pick it up at their location, they are required to charge sales tax (unless you have a tax exempt certificate) must like you would buying something at a store in that state. If they deliver it out of state, they are (in most cases) not required to collect sales tax on it.

Aaron Z

 

[Rock Crawler]

Generally speaking, if you pick it up at their location, they are required to charge sales tax (unless you have a tax exempt certificate) must like you would buying something at a store in that state. If they deliver it out of state, they are (in most cases) not required to collect sales tax on it.

Aaron Z

I actually asked that question... If I have it delivered to me in PA, would I pay the 7.25% OH sales tax, or not. He said yes. That is almost $375 more in taxes than I would pay here in PA.

Option B... I have a farmer buddy... give him the cash to make the buy and sell it to me for $1 when we get into the parking lot :laughing: and save almost $2,000!

 

[bspeedy]

Um...

Are people really so honest as to put their hand up and say 'Here, State X, I owe you some tax money!'.

I consider myself fairly strong on the Morality Scale, but I don't rush to pay taxes.