Usage Tax

[iplumb]

We bought our Kubota across the boarder in another state. At that time they didn't collect sales tax because we where out of state. So my question is usage tax reguired? Thanks

 

[Opti-Mist]

No more, or less, than any other item purchased out of state. Technically yes, but .......

 

[rvaitor]

We bought our Kubota across the boarder in another state. At that time they didn't collect sales tax because we where out of state. So my question is usage tax reguired? Thanks

I'm not sure all states have use tax, but that is how they handle items bought out of state and domiciled in state. Usually they go after big ticket items. Is your property considered farm use. This would generate a Farm Tax ID in some states and as long as the tractor was used to 'produce' agricultural product, you may be able to approach it from that angle.

 

[123rday]

If you check out pg 13 post 128 of Avoiding Tax on New Tractor, you'll find out legally yes.

 

[buck12]

I assume its the same as an ATV in that the selling out of state dealer is not required to collect the tax. The purchaser is to pay the tax in their home state. Several years ago Mississippi auditors went to out of state ATV dealers and sent bills with fines to those that had not paid tax on new ATVs. Happened to a coworker.

 

[jda1961]

if you buy from an individual there is no sales tax unless its an auto, then you pay that when you get the new title. tractors no, who's gonna know?

 

[Skyco]

I assume its the same as an ATV in that the selling out of state dealer is not required to collect the tax. The purchaser is to pay the tax in their home state. Several years ago Mississippi auditors went to out of state ATV dealers and sent bills with fines to those that had not paid tax on new ATVs. Happened to a coworker.

The exact same thing happened in SC. A lot of people had bought ATVs in NC on the advise (flawed) that they could save by not paying the tax. Not only did they end up paying the tax but a penalty too.

I got in a real big mess when I bought a dual sport motorcycle from a local guy. He had never licensed the bike since his son used it exclusively off road, and he bought it out of state. When I tried to get the title so I could license it he said his credit union had it. They didn't, he had never titled it. They also said they had warned him what he did was illegal. Bottom line the SC highway department made him pay the $300 tax he should have paid or he was going to be charged with tax evasion. Man was he ever hopping mad, he was lucky they didn't make him pay a penalty too, or maybe they did I'm not sure.
Bottom line..be very careful.

 

[BungeeII]

http://www.michigan.gov/documents/use_p3_2773_7.pdf

or, as was said by another poster here...

VA has a similar 'use tax' with the intent of - if you didnt pay the sales tax to someone, you owe it to VA..

Brian

I would go so far as to say that (I could be wrong on this, but it's been the case at retailers I've worked for) if the end user is taking delivery of the product at the store they're buying it from, then the dealer is "supposed" to charge them sales tax in that state. So, if you drive over to Wisconsin to buy a tractor and say "hey, I live in Michigan", he should say "hey, you're standing at a sales counter in Wisconsin" and charge Wisconsin sales tax. If you truly "mail order" a product that is delivered via courier, they cannot charge you sales tax unless they have a sales outlet in your state. At that point, you're solely responsible for reporting the purchase to the State of Michigan to pay "Use Tax".

There seems to be a collective rationalization for why it's not necessary or shouldn't be followed, but the fact is, we have a use tax.