Buying Advice Dealers advertising no out of state tax...

[Tractor Seabee]

Sounds like I need to ask the Wyoming dealer about that. I figured that since I've bought out of state vehicles that were not taxed until registered in my sate the same goes with machinery.

But, machinery isn't registered. Anybody out there live in a state that licenses tractors or other off-road machinery?

Ron

 

[Streetcar]

Ohio has a line on state income tax forms to pay sales tax on items bought out of state

 

[coldsteelva]

Same for VA: The tax forms (and online tax prep software) all ask if there were any out of state or online purchases made for which sales (use) tax was not paid. The out of state dealers don't collect it because they don't 'exist' within the state where the tax is owed so they have no way to collect it and remit to the appropriate agency. It's a gray area to advertise that tax isn't collected (but it is still owed).

I live in the northwest corner of VA where WV, MD, and VA all come together and PA is only 45 minutes away. That means there are 3 other states within shopping and delivery distance. Generally, if you pick up an item (non-vehicle), you will pay sales tax to the jurisdiction where you bought it, but if that vendor delivers from out of state, they won't collect their state tax and can't collect your state tax. This doesn't mean the tax isn't owed.

 

[MessickFarmEqu]

I'd question the honesty of a dealership so brazen as to advertise that its customers commit tax evasion.

 

[Jstpssng]

Ohio has a line on state income tax forms to pay sales tax on items bought out of state

So does Maine, and probably a lot of other states, although as somebody else said it's dependent on the individual's honesty;
Just as many people don't see a problem with "working under the table", often undercutting businesses who do things legally.

 

[Diggin It]

Those Use Taxes have a kick to them too. Let's say your home state has a 6% Sales Tax, but a neighboring stat's sales tax is only 4%. Use Tax laws sometimes say that you owe your home state that other 2%.

 

[Turbys_1700]

States are trying to figure out how to get this use tax. They are losing revue like a sieve due to online purchases and have just started to enact laws to address this issue. Once the sales tax of online purchases are resolved it will perhaps help the retail brick an mortar stores somewhat. I don't know any way for states to get this use tax unless the dealership reports it to the state. At this point it is up to the individual to pay the tax on out of state unregistered purchases.

 

[Jstpssng]

^^^^^
When Cabelas wanted to put a retail store here in Maine one of the requirements was that they start collecting Maine Sales Tax from their online sales.

 

[Jchonline]

There have been stories on this forum about State taxing agencies video taping vehicle purchases as evidence and sending folks tax bills. I doubt that is commonplace, but it has happened. My advice is if you have a reputable dealer with a good service department in your State, go with it. Make them complete on the price of the tractor and give them your business if they earn it.

 

[MossRoad]

Hey, I遏･ in the market for a new tractor. LS xu6158c to be exact. Anyone have any advise on dealers advertising no sales tax for out of state residents? Seems to be a big savings but the down side of not buying local? Also how would I pay the taxes in my home state (Louisiana) if so? In my 46 years on this planet this will be my first new set of wheels bought from
A dealership. Nerve racking to say the least.
Thx. In advance.

Not being judgemental here, just providing some information so you're informed, and because you asked, and it's no business of mine, so that's out there first, live and let live and all that... ... . :laughing:

According to Louisiana law here:

Consumer Use Tax - Louisiana Department of Revenue

"If you purchased goods from out-of-state companies for use in Louisiana and were not properly charged Louisiana sales tax, Louisiana Revised Statute 47:302(K) requires you to pay a Consumer Use Tax directly to the Louisiana Department of Revenue."

According to Iowa law here:
Iowa Consumer's Use Tax | Iowa Department of Revenue

"Consumer痴 use tax, on the other hand, is imposed after the sale takes place and only on goods and services that have not yet been subjected to sales tax. In most cases, these are purchases made from an out-of-state supplier not collecting Iowa tax and that are for use in Iowa. Ordinarily, the retailer is responsible for collection of the tax; however, if the retailer is not required by law to collect the tax or the Iowa retailer fails to collect the tax, the purchaser is then responsible for consumer痴 use tax. The purchaser must pay the use tax when ownership or control of the purchase is taken.

Use tax applies to, but is not limited to, purchases made tax free through mail-order catalogs, television shopping programs, the Internet, toll-free 800 numbers; magazine subscriptions; and untaxed purchases made while in another state and shipped or otherwise brought into Iowa. Anyone individuals and businesses who makes these types of purchases is required to pay consumer痴 use tax to the Iowa Department of Revenue."

It's pretty clear.... you're required to pay the SALES TAX on in-state purchases and the USE TAX on out of state purchases if the seller didnt' collect Iowa or Louisiana sales tax at the time of purchase, whether it's an internet sale or a direct sale.