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

[beppington]

The length of this thread already explains why across-state-lines sales tax is problematic to say the least ... I don't think states are even sure how to do it uniformly.

I "think" the answer to the OP is that the NY dealer is correct.

1) My better half sells stuff on the internet out of our home here in FL. She is a total stickler for the rules. When she sells to a person in another state, she does not collect any tax at all. When she sells to a FL buyer, she collects sales tax at the rate for that buyer's county, which varies from county to county. Then, quarterly she makes a tax-collected payment to the State - God knows what they do with it. Certainly they wouldn't know how to distribute it accurately to the counties from which she collected it - She doesn't provide them with such a breakdown list, so they wouldn't even know which counties she collected tax for/ from.

2) The closest AgriSupply location to me is in GA. If I buy something online from AgriSupply, no sales tax. If I visit the store in GA, they charge me their sales tax, even though I'm taking the item right home to my home in FL (did this once with an $1,800 Caroni flail mower). IMO they should charge me no sales tax but inform me that I must pay FL the correct FL sales tax at my county's sales tax rate.

In order for it to change, AgriSupply would have to have an accurate, up-to-date database of the sales tax rate for every county in the US, & have a means of distributing the taxes collected for every county they sold to, to those counties. What a nightmare?

This is all ridiculous to me. But I guess one way to make it enforceable is to have a firm, uniform law, which might require all counties within all states to charge the same tax rate ... & I don't think the Feds have the authority to require that.

 

[MessickFarmEqu]

If I visit the store in GA, they charge me their sales tax, even though I'm taking the item right home to my home in FL (did this once with an $1,800 Caroni flail mower). IMO they should charge me no sales tax but inform me that I must pay FL the correct FL sales tax at my county's sales tax rate.

No, they are right. Its all based on where the transaction took place. If you where in the store, they must collect the tax for their state. It does not matter where the product is going. If the transaction happened in a state where they did not have a license then they are not obligated to collect.

As you can imagine we hear lots of stories about this. The further North you live, the more likely you are to have problems with this. Especially if you live in "the peoples republic of Connecticut" and the neighboring New England states.

 

[davygp38]

Just got off the phone with my accountant. It is true, that no matter what you buy out of state, you are required by law to pay the New York state sales tax period. He confided in me that on small purchases like a washer, or dryer, it would be hard for the state to track that, but on a big purchase it would be risky. Like some others have posted, this is known as a use tax. In a nut shell it means "where are you going to use the machine?" In my case I live in Ny, but own land in Pennsylvania, which is where I would use the machine. My eyes are open now, and this changes things for me. By the way, I have to thank my accountant for answering the phone, durring this busy time for him, and not charging me for the call.

 

[Bird]

Just one of many stories is this one about amazon leaving Texas because of the sales tax dispute. You can find a lot of stories about it if you go to google.com and enter "Amazon leaving Texas" for the search string.

 

[Ductape]

How's your property tax, high.?? I would bet.

I don't consider ours bad @ $2800 / yr..... but our house was built in the 1800s and we don't have much of a spread. I know NH isn't known for having low property taxes...... but not getting hit every time I buy something makes shopping in another state feel like I'm getting violated. Be honest...... you shop in NH !! :laughing:

 

[farmboyZ]

The sales tax for equipment or anything you purchase in another state is the tax you pay there. I live in illinois (the worst taxing state!) and if you live in cook county I think the tax is somewhere around 12%

 

[grsthegreat]

The sales tax for equipment or anything you purchase in another state is the tax you pay there. I live in illinois (the worst taxing state!) and if you live in cook county I think the tax is somewhere around 12%

yeiks....searously...12%. id move
that truly sucks

 

[Pixguy]

How's your property tax, high.?? I would bet.

As Ductape said, NH is not known for it's low property taxes, but they are still lower than the property I owned in RI, where they also tax you at a 7% rate for sales on everything!

Of course the state has to get their money from somewhere, but if you keep your "overhead" lower than you don't have to charge sales tax.

Not to get political, but you should see all the MA residents who vote for all the social programs but come to NH to avoid the sales tax..... very funny.

 

[Ductape]

you should see all the MA residents who vote for all the social programs but come to NH to avoid the sales tax..... very funny.

Moreso with the shoppers from Quebec..... they love those free doctors visits, but drive back from NH smuggling a few grand worth of clothes in the trunk from exit 20 to avoid their 26% tax. :confused2:

 

[MikeD74T]

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?

Davy, In short you are responsible for the sales tax in the state you live in, the dealer is responsible for the tax in the state he sells in. If he delivers to your state he'll collect the tax of your state & forward it. If you take delivery in his state you pay their tax. Take delivery in NH where there's no sales tax & you'll both be happy, at least until your state comes looking for you. It's done every day by dealers of NHs surrounding states that deliver. MikeD74T