7mmrum
Silver Member
Post deleted by 7mmrum
Taxes, How will this work *DELETED* *DELETED*
- Thread starter 7mmrum
- Start date
Henro
Super Member
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- Jul 4, 2003
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- 5,977
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- Few miles north of Pgh, PA
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- Kubota B2910, BX2200, KX41-2V mini EX
Re: Taxes, How will this work
7mmrum,
This specific issue has been beat to death in more than one thread in the past.
If you do a search you should find them...
There is a LOT of detail and options discussed in those threads...take a look...your head will spin before you are finished reading... /forums/images/graemlins/shocked.gif /forums/images/graemlins/grin.gif
7mmrum,
This specific issue has been beat to death in more than one thread in the past.
If you do a search you should find them...
There is a LOT of detail and options discussed in those threads...take a look...your head will spin before you are finished reading... /forums/images/graemlins/shocked.gif /forums/images/graemlins/grin.gif
frank_f15
Super Member, Rest in Peace
Re: Taxes, How will this work
The way that is supposed to work is YOU are supposed to notify your state of Residence of your purchase and then pay the taxes. This is a call each person must make by themselves.
The way that is supposed to work is YOU are supposed to notify your state of Residence of your purchase and then pay the taxes. This is a call each person must make by themselves.
jayhawkRoy
Silver Member
Re: Taxes, How will this work
Take a look at drcollie's notes about Virginia use tax. Here is his bottom line:
"Anyways, the whole point of my original post was to warn new tractor and implement purchasers that in the Commonwealth of Virginia, you can wind up paying that sales tax for what you buy *tax-free* now at a later date, so when you have big-ticket items shipped or delivered to you, mentally calculate 4.5% sales tax and don't be surprised if you have to pay it down the road as part of your purchase (that 3.5% figure someone quoted applies to licensed motor vehicles in VA, not tractors)."
Purchaser should be aware of the consequences and the rmoney saved may not be worth the risk. Don't know if there are penalties for failure to report or not.
Take a look at drcollie's notes about Virginia use tax. Here is his bottom line:
"Anyways, the whole point of my original post was to warn new tractor and implement purchasers that in the Commonwealth of Virginia, you can wind up paying that sales tax for what you buy *tax-free* now at a later date, so when you have big-ticket items shipped or delivered to you, mentally calculate 4.5% sales tax and don't be surprised if you have to pay it down the road as part of your purchase (that 3.5% figure someone quoted applies to licensed motor vehicles in VA, not tractors)."
Purchaser should be aware of the consequences and the rmoney saved may not be worth the risk. Don't know if there are penalties for failure to report or not.
Bob_Skurka
Super Member
- Joined
- Jul 1, 2003
- Messages
- 7,503
Re: Taxes, How will this work
Totally depends on your state laws.
Legally, you very likely are required to report it. Legally you would pay your state the tax. It is called USE tax when a transaction like this occurs. Failure to do so is called Tax Evasion. Tax Evasion is quite different that Tax Avoidance in that Evasion can, in extreme cases, lead to jail time, or normally would lead to penalties, back inerest, and the tax itself.
Now the question is what are your chances of getting caught. Again, that is a state issue. Many states have resiprocity agreements with surrounding states and states in close proximity. So if you cut a deal with a dealer just across the state line, your risk is significantly higher than your risk might be if you cut a deal with a dealer who is across the other side of the Mississippi river.
DISCLAIMER: I am neither an accountant nor a lawyer, however I am an "expert witness" who has testified in multiple states and multiple tax jurisdictions on excise tax issues for a couple different industries. I have been requested to tesify not only by various trade associations, but also by both Republican and Democratic members of various State Senates and Houses of Represntatives
Totally depends on your state laws.
Legally, you very likely are required to report it. Legally you would pay your state the tax. It is called USE tax when a transaction like this occurs. Failure to do so is called Tax Evasion. Tax Evasion is quite different that Tax Avoidance in that Evasion can, in extreme cases, lead to jail time, or normally would lead to penalties, back inerest, and the tax itself.
Now the question is what are your chances of getting caught. Again, that is a state issue. Many states have resiprocity agreements with surrounding states and states in close proximity. So if you cut a deal with a dealer just across the state line, your risk is significantly higher than your risk might be if you cut a deal with a dealer who is across the other side of the Mississippi river.
DISCLAIMER: I am neither an accountant nor a lawyer, however I am an "expert witness" who has testified in multiple states and multiple tax jurisdictions on excise tax issues for a couple different industries. I have been requested to tesify not only by various trade associations, but also by both Republican and Democratic members of various State Senates and Houses of Represntatives