Price Check What kind of tax do tractors fall under?

[Ducati07]

I'm from California and the sales tax here is 7.5% in my county. I'm buying a tractor in Oregon where there is no sales tax. If I did buy here in my county, or any other county with sale tax....is that the tax we pay as a homeowner tractor owner? I don't own a farm but I do have a small landscape company, would that change things?

My question is...are there different sales tax brackets for tractors?

I've heard of a "farmers tax" which is much lower...around 2%. How do you fall into that category?

Also, will I need to register the tractor with the DMV? Because that usually when they nail you again for the sales tax. However, that's normally with a used vehicle. I'm buying new so I assume the registration will be done through the dealer.

Thanks for any info on paying the man.

 

[WPSmolder]

Not sure about Oregon, but when I bought a new tractor last year in West Virginia, the dealer explained to me that you could become tax exempt for equipment purchases if you produced $1000 worth of produce or crop a year.

 

[MHarryE]

Very good question that varies by state. I farm so in Minnesota no sales tax. I buy my equipment in Wisconsin and have a form filed with the dealer that allows me to pay no WI sales tax because I farm in MN. That involves all parts at the ag stores where I filed papers if the item meets ag use code. Reading the MN tax code it states if the machine is used to produce a product or service on which there will be sales tax, the item will not be taxed. CA may have something similar. All of Minnesota's can be found by Googling the question. Looks like California is more restrictive - exempt for agriculture, timber production, or raising race horses. Says you are required to fill out forms and pay tax as soon as you purchase but does big brother watch you?

 

[RPW]

Contact your state comptroller. They can give you the correct information.

 

[Gary Fowler]

If you have a licensed farm, there is no tax on farm equipment in Ark. Most dealers don't even require you to prove it, just saying that you do is good enough. I suppose if you lie, it is on you and not them so they aren't worried if you get fined later.

 

[smstonypoint]

If you have sufficient ag. and/or timber sales in NC, you can apply for a sales tax exemption for business items (equipment, parts, chemicals, etc.). The state provides you with a sales tax exemption number that you have to provide to dealers in order for the sales tax to be waived.

Steve

 

[kcflhrc]

If you have a licensed farm, there is no tax on farm equipment in Ark. Most dealers don't even require you to prove it, just saying that you do is good enough. I suppose if you lie, it is on you and not them so they aren't worried if you get fined later.

Same here in Kansas, doesn't have to be a licensed farm though.

 

[grsthegreat]

just buy it in oregon without any tax and haul it to calif to use. you dont need to register it, so those bureaucrats will never know.

 

[kcflhrc]

just buy it in oregon without any tax and haul it to calif to use. you dont need to register it, so those bureaucrats will never know.

:thumbsup:

 

[Ducati07]

just buy it in oregon without any tax and haul it to calif to use. you dont need to register it, so those bureaucrats will never know.

:thumbsup: