Avoiding Tax on New Tractor??

[Ken]

Buy a tractor with 30 hours on it, from a private party sale.

Save a grand in sales tax.

State of Arkansas charges the assessed value to used vehicle taxes not what was paid.
And just decided the value of all vehicles is more. due to the lessened income from economy slow down.
Bought a used 5th whl. travel trailer. paid 18k they said its value is 22k had to pay the tax to get license.
Then they wonder why people want to avoid the tax.
ken

 

[Piperflyer]

No.... Bought mine in NH and I live in NY

 

[123rday]

I too thought about going out of state to purchase a tractor to save on tax. But ended up not doing it. Of course just doing taxes last week, found out they asked if anything had been purchased outside Michigan. Since I try to be as honest as possible I put in the $1199.00 for the new (37")tires I had purchased for my truck from online.
It come down to if it ever was discovered, do you want your butt covered or possibly face fines and other charges?

 

[ultrarunner]

Makes no sense when you think about it, sales tax.. tax on the sale, so why should for example CA be entitled to tax on a sale made by an Oregon dealer?
It wasn't a CA's sale. I might want to buy out of state but more because of a dealer willing to deal. The result leaves a bad taste that CA gets taxes from a sale never made there while I take time off work and travel expenses.

It's because CA charges a "Use Tax" and not a sales tax on out of State Purchases...

Hey... don't be surprised... CA was spending a lot of time in effort to collect State Income Tax on Pensions earned in California for Retirees no longer living in California.

If there is a Tax... chances are California has it... my friend is a licensed car dealer and just told me the State sent him a payment envelope with a bill equalling $1 for every car the Dealership Sold in 2009... he knew nothing about it and learned he has to pay it.

 

[LBrown59]

State of Arkansas charges the assessed value to used vehicle taxes not what was paid.
And just decided the value of all vehicles is more. due to the lessened income from economy slow down.
Bought a used 5th whl. travel trailer. paid 18k they said its value is 22k had to pay the tax to get license.
Then they wonder why people want to avoid the tax.
ken

This surely don't apply to private sales does it ?

I too thought about going out of state to purchase a tractor to save on tax. But ended up not doing it. Of course just doing taxes last week, found out they asked if anything had been purchased outside Michigan. Since I try to be as honest as possible I put in the $1199.00 for the new (37")tires I had purchased for my truck from online.
It come down to if it ever was discovered, do you want your butt covered or possibly face fines and other charges?

Inernet sales aren't taxable .

 

[123rday]

COLOR=deepskyblue]Inernet sales aren't taxable .[/COLOR]

Well I guess I'll claim stupidity but safe. My wife didn't think so either (the smart one), but I didn't want to take any chances. Mine was a use tax also. Only affected 1% of what I am getting back for federal this year...Lots of write offs for the buisness this year.

 

[Ken]

This surely don't apply to private sales does it ?Inernet sales aren't taxable .

LB Brown this applies to sales requiring a assessment for license or title change to new owner.
Farm equip. is depreciated by straight line or 5 /7 /10 years.

Was over your area late last year on state 30 headed for Penn to a cattle sale. Nice country.
ken

 

[BungeeII]

=Inernet sales aren't taxable .

Every state with a sales tax has a companion tax for purchases made outside the state. In Michigan, that tax is called the "use tax" but might be more aptly described as a remote sales tax. As a general rule, you owe this tax if you purchased merchandise and did not pay sales tax. Typically this happens when you purchase an item (for example, clothing, books, furniture, computers) by telephone, catalog, Internet, or in person from out-of-state businesses that do not add the Michigan sales tax to your bill. While many Michigan residents are not aware of the use (remote sales) tax, it has been on the books since the 1930s.

http://www.michigan.gov/documents/use_p3_2773_7.pdf

 

[Ductape]

It's not crazy, it's fair. Everybody pays sales tax.

No, its not necessarily fair. And....... I sure as heck DON'T pay sales tax. For anyone buying a new tractor for personal use (not as a tax write off, and not to be registered for road use), c'mon up to New Hampshire to buy.

We just had a situation here where the state of Massachusetts was taking a national chain store to court in an attempt to make them hand over tax monies for Massachusetts residents who bought tires for their car in NH. FAIL ! In fact, when that came to light the state of New Hampshire passed a law making it illegal for other states to collect their sales taxes from businesses in New Hampshire.

Sorry, just forking over money to the government to blow isn't what I call patriotic. Saving money where you can just makes good sense. Yes.... there are plenty of taxes we MUST pay, but i sure wouldn't feel guilty for using the system to my advantage. Thats why so many people use an accountant to do their tax return, isn't it ??

 

[LBrown59]

Farm equip. is depreciated by straight line or 5 /7 /10 years.

Was over your area late last year on state 30 headed for Penn to a cattle sale.
*Nice country.
ken

*Thanks :
I've lived here all of my 69 years.
Best state i've ever lived in.

 

[Ken]

*Thanks :
I've lived here all of my 69 years.
Best state i've ever lived in.

Weather permiting will be in Columbus the 25/26th of March for a cattle sale.
and using Birds Lustrums have one on you.

Take care. ken

 

[bullet3z]

This surely don't apply to private sales does it ?Inernet sales aren't taxable .

You might want to do a little more research on that one. They are taxable, ie a use tax.
Use tax - Wikipedia, the free encyclopedia

 

[thatguy]

http://www.michigan.gov/documents/use_p3_2773_7.pdf

VA has a similar 'use tax' with the intent of - if you didnt pay the sales tax to someone, you owe it to VA..

Brian

 

[BungeeII]

If you didnt pay the sales tax to someone, you owe it to VA..

Perfectly said. Can't be any clearer than that.

 

[archerm3]

No, its not necessarily fair. And....... I sure as heck DON'T pay sales tax. For anyone buying a new tractor for personal use (not as a tax write off, and not to be registered for road use), c'mon up to New Hampshire to buy.

We just had a situation here where the state of Massachusetts was taking a national chain store to court in an attempt to make them hand over tax monies for Massachusetts residents who bought tires for their car in NH. FAIL ! In fact, when that came to light the state of New Hampshire passed a law making it illegal for other states to collect their sales taxes from businesses in New Hampshire.

Sorry, just forking over money to the government to blow isn't what I call patriotic. Saving money where you can just makes good sense. Yes.... there are plenty of taxes we MUST pay, but i sure wouldn't feel guilty for using the system to my advantage. Thats why so many people use an accountant to do their tax return, isn't it ??

Yes it is fair. If them's the rules of whatever state you happen to be in, then you follow them or you don't. It's your integrity not mine. What isn't fair is when people CHEAT the system to their advantage. Then the state has to collect MORE money from the people who do follow the system, in order to cover the budget's that the state had to plan for, that everyone gets the benefit from.

Makes me glad that I didn't have to die serving the country for "some" people's freedom to cheat the tax code. Forking over money to the gubment isn't the definition of patriotic, but most certainly, CHERRYPICKING which laws you want to follow most certainly is not either.

 

[GPintheMitten]

Pay what you owe and don't pay what you don't owe.

But don't cheat!

 

[FarmBuddy]

Yes there is a sales tax in TN (9.25% per dollar). We have Democrats....

In TN if the tractor is for commercial farming (large or small) then a form can be filed with the seller (which goes to the IRS to exclude the seller's liability for the tax) exempting the sales tax. The buyer should be able to provide (to the IRS) reason for the exemption such as owning a commercial operation (and filing tax papers as such). Otherwise, it's like any other commodity in TN.

Yes there is a sales tax in TN (9.25% per dollar). We have Democrats....

In TN if the tractor is for commercial farming (large or small) then a form can be filed with the seller (which goes to the IRS to exclude the seller's liability for the tax) exempting the sales tax. The buyer should be able to provide (to the IRS) reason for the exemption such as owning a commercial operation (and filing tax papers as such). Otherwise, it's like any other commodity in TN.

Republicans control every facet of political life in Tennessee, but Democrats somehow raised the sales tax anyway. Geez!

 

[cathy liebchen]

I live in Texas. If I buy a new tractor from another state will I not have to pay any sales tax on the tractor? I called a dealer in Louisianna and was told that if I had a driver's license from Texas that there would be no tax. But when I return to Texas is there any entity that will want to collect. Uncle Sam usually gets his fair share.
I don't qualify for ag exemption in my county.

Curt

No Federal sales tax so it’s just state taxes you are trying to avoid. Time to pay your fair share

 

[jyoutz]

I live in Texas. If I buy a new tractor from another state will I not have to pay any sales tax on the tractor? I called a dealer in Louisianna and was told that if I had a driver's license from Texas that there would be no tax. But when I return to Texas is there any entity that will want to collect. Uncle Sam usually gets his fair share.
I don't qualify for ag exemption in my county.

Curt

I live In New Mexico and bought my tractor in Colorado. There was no tax for sale to out of state residents in Colorado. I also had a quote from a Texas dealer and they said I would have to pay tax there even if I’m not a resident. In my state, there’s no mechanism to collect taxes from out of state sales on a tractor, so I paid zero taxes. I have bought a vehicle out of state and of course had to pay New Mexico taxes when I registered the vehicle. Since tractors aren’t registered

 

[Torvy]

This is a 17 year old thread...btw