sales tax question

[DavesTractor]

This is true but for most states it is voluntary to report and pay the tax so not many people actually follow through and pay it. Here in VA you are supposed to report it on your state income tax return. It is different for items like cars that need to be registered with DMV but with things like tractors or stuff you buy online it is purely voluntary.
I guess if your income tax return gets audited by the state and you are writing things off on your business or farm schedule then when the invoices are examined they could assess the unpaid sales tax.

I'm not sure voluntary is the right word, although I understand the use of it, but do you mean that it is somewhat on the honor system? It is certainly mandatory to report it and pay it, but since they don't know you bought it, you must self report. If you don't and they catch you, you are penalized, so it can't be voluntary. Otherwise, I'd opt out of such a tax! It is true that many people don't report and don't pay, and few are caught.

 

[randy41]

I guess voluntary is not the right word but at least here in VA so few people ever get caught breaking the law on this issue that it might as well be voluntary.
But yes you are right that the honor system is a better term to use. In many ways the whole tax system is on the honor system.

 

[kthompson]

Not sure if you want to travel this far, but South Carolina has a $300 cap on vehicle taxes. Doesn't matter if it's a $20k tractor or a $400,000 Bently, $300 is all you pay. Nice huh? Of course they get you on property taxes, but only on vehicles that must be registered/tagged. Tractors are exempt. However, if you have a farm number, there is no state tax.

Sorry neighbor, the $300 cap does not apply to tractors (don't think it does on lawn equipment either) in SC. It does apply on autos as you said even a $400,000 one. You are correct on the farm number. I did verify this with tractor dealership. It may apply to some other line than autos but tractors is not one of them. That is because the SC Auto Dealers convinced our State people would buy in NC or GA to avoid the high sales tax if not capped. kt

 

[George in Spokane]

Well in January this will be a moot point because most of us 90% according to some will not have to pay any taxes since we make less than $250,000. We will also be getting our wealth redistribution checks sometime in February so we can afford to by more toys ...i mean tools

 

[kthompson]

Well in January this will be a moot point because most of us 90% according to some will not have to pay any taxes since we make less than $250,000. We will also be getting our wealth redistribution checks sometime in February so we can afford to by more toys ...i mean tools

I hear you man and even the unspoken meaning.

 

[2manyrocks]

What $$ that hasn't already gone to the Middle East for oil went to the bail out(s).

 

[thatguy]

Good advice, but remember that just because the selling state does not require the seller to collect tax, does not mean that your state of residence and actual use of the tractor won't require that you pay tax.

that is the way it is here in VA.. The same thing applies to internet purchases - Virginia excepts you to put them on your tax return and pay the 'use' tax..

Brian