Do I pay sales tax to out of state dealer?

[rsewill]

In my state (MN) if a company in another state has a 'presence' in MN they must collect the tax. I recently bought a grass bagging system from John Deere in South Dakota and had it shipped to me and I paid the MN sales tax to them because Deere has a presence in MN.

Now when I bought my Apple laptop from a reseller in California and had it shipped to MN then there was no sales tax because the reseller (dealer) has no presence in MN even though Apple does.

Some old threads never die, just the original poster does.

 

[oldballs]

Many of these old posts are interesting to those of us who have never read on the subject or are experiencing similar situations currently.

 

[wcampbell47]

A little off topic but relevant somewhat. In 2008 I purchased a car from an individual in Aridzona. I flew out and paid for the car with a cashier's check. In a couple of hours the DMV had the title of the car in my name. At the DMV office there was no mention of a sales tax.

Drove the car back home to Texas. Changed the title from AZ to TX and registered it. No mention of taxes at the courthouse. Of course the car was in my name when I drove it across the state line so there was no sale that occurred in TX.

I will be buying all my cars in AZ from now on. Remember I conducted my business at the DMV in AZ and at the county courthouse in TX. I assume they knew the law and followed it.

 

[davygp38]

It may be an old post, but it is still very relevant. I have been pricing out mini excavators for a year now, and was told by a dealer in my state that " It doesn't matter what state I buy in, I am required to pay NY sales tax." I thought this was just sour grapes on his part, because I live on the border of two other states. It turns out he was right. The fact is, any...any purchase I make out of state, NY is supposed to get a piece. In reality this would be impossible. However, if you buy a major item, like a tractor, and you finance it, the company you bought it from ex: Kubota files paper work in your state listing this. The only way around this, is to go to a state with no sales tax (New Hampshire,) and pay cash.

 

[wcampbell47]

On second thought since this is somewhat of an agriculture forum ... in Texas one can obtain an exemption from paying sales taxes on equipment used in agriculture. Certain conditions apply to acquiring the exemption.

 

[greasemonkeyok]

davygp38, in some states there is a "use tax" on all items purchased out of state, with a credit for any sales tax you paid.

In effect, you pay the equivalent of a sales tax in Oklahoma if you purchase equipment from a Texas dealer that does not charge you sales tax. A few years ago there were businesses that bought their office supplies from mail order houses (like Quill) and did not pay the "use tax". The state sued some of the mail order houses and obtained the names of their big accounts in Oklahoma. You can guess what happened next - tax + penalty + interest.

 

[crazyal]

The good news is if the OP didn't pay taxes and they haven't come looking for tax money he's in the clear now.

 

[teg]

...or he's been in jail for the last 6 years.

 

[LBrown59]

Many of these old posts are interesting to those of us who have never read on the subject or are experiencing similar situations currently.

Yeah but the old post haters never think about that.