My son won a new motorcycle in a promotion give-a-way. The MSRP on the motorcycle was $4000.
Upon taking delivery, he had to write a check for $600 which included 6% sales tax, title/license fees and setup (the manufacture only provides the motorcycle to the dealer, setup costs not reimbursed.)
At the end of the year he gets a 1099 tax form in the mail for $4000. Adding in federal and state income taxes (he was around 25% combined income tax bracket), he was responsible for another $1000 in income tax.
So, that $4000 "free" motorcycle cost him $1600 out of pocket. Sure, most would buy a new $4000 motorcycle or any other merchandise of that value for $1600, but if that tax burden was not in the budget to begin with, it can be challenging.
Looks like the tractor in the promotion will have an MSRP of around $20,000. Factor in your state and local taxes. For me, I'd probably be in the $5000 range!
I only enter promotions or contests that have a cash option. That way, I've got the tax bill covered from the beginning and don't have to go through the hassle of selling the merchandise to cover the tax bill.