Buying Advice I think I am being lied to, by a dealer.

[davygp38]

I was at a local equipment dealership ( located in New York state) yesterday, test driving a 5 ton excavator. When it got time to talk price, I mentioned that I usually buy my tractors from a dealer in Pennsylvania, (I live in New York) because his prices are the same, but the sales tax is 2.75% cheaper. He told me that the law requires that I pay the sales tax in the state that I live in. I told him, that I never had to do that before, and I have purchased 2 TLBs, and a tractor, from the dealer in PA. I left before I got too mad, and figured I would go to the experts. I know that you have to pay the tax, to the state you register a car in, but I never heard tell of paying tax for a tractor, or anything else to your home state. Before I embarrass myself with this guy, is he blowing smoke, or is he right?

 

[Bird]

I'm not familiar with specific New York and Pennsylvania laws, but I'll bet he was right. A lot of people don't pay what some call sales tax and others call a use tax in their state, and they may or may not ever get caught.

 

[grsthegreat]

it all depends on the state.. where i live in Idaho, if i pick up an item purchased in Washington, i have to pay Washington sales tax; however if i have it delivered, i then have to pay Idaho tax (the state in which I live, which is about 4% less).

so i guess it depends on whether you pick it up or have it delevered.... its usually the state in which YOU live that determines the tax. I bought a new tractor in Washington about 1-1/2 months ago, and i paid the washington dealer IDAHO's 6% sales tax not washingtons 9.5%.

not sure about how it works up your way, but i would think it would be the same.

 

[20 20]

legal....illegal.... tax, when congress gives themselves a raise do you think they worry about how you're going to feel?

 

[milkman636]

State sales tax can only be charged by a deler that is licensed by the state. If the dealer is only licensed by the State of Pennsylvania, he can only charge Pennsylvania sales tax for the transaction. That money will then be paid to the state of Pennsylvania by the dealer.

If you did not pay tax on the purchase in Pennsylvania, then NY will want you to pay sales tax to them instead. If you look at your state's 1040 tax form instructions it will probably point you directly to the line on the form where they will want you to include it in your income tax payment.

To further complicate matters my state calls it sales and use tax. If the selling dealer happens to be licensed by both states and knows the machine is for use in your home state, then he would be charging you the rate that applies to your state of residence.

 

[ColdRider]

Here in Maine it's a use tax. They will track it down. It was almost a year but they got me. No tax for farm equipment for a farmer. And yes there is a place to pay it on our state income tax forms.

 

[paulrk]

Unless they changed the law, If you live in PA, you pay the tax in PA.

 

[Gods Country]

The dealer is correct.
I went throught the same think with a NY dealer.
I ended up buying in Pa though because prefer to keep my money local whenever possible.

 

[crash325]

legal is the question. But the answer is "will I get caught." :thumbsup:

i bought my AZ tractor as a CA resident and "saved" about 9%. But the tractor never went to CA, so they can't charge me tax. Even if they do try, CA has no authority to collect tax in AZ. All they can do is send me a bill.

Take a chance, may never get caught. If you do get caught, may have to pay the tax, no big deal. :thumbsup::thumbsup::thumbsup::licking:

 

[charleyfarmall]

Most states require you to pay their tax on items you purchase out of state and import. As noted above, it is called use tax. All that stuff you bought on amazon and had shipped to your house? You owe the taxes. All those internet companies that advertise No Sales Tax - true, they won't collect it from you because they don't do business in your state. However, you almost certainly still owe the state their taxes. Most people never report and never pay.