</font><font color="blue" class="small">( Realize that many states have "reciprocity" with their neighboring states and share information on large sales. So someone in a small state like Mass, Rhode Island, New Jersey or Delaware may run to a surrounding state and find that the surrounding state turns his purchase into his home state. . . oh, and that can trigger an audit.
Now I suppose if you really want to get sneaky, and are **** bent on being a tax cheat, then you might want to skip a state. Say you are a Pennsylvania resident, instead of going to Ohio to buy a tractor, skip over Ohio and go all the way to Indiana. It is very doubtful that Indiana would have tax reciprocity with Pennsylvania . . . however it is likely that shipping costs would be nearly equal to sales taxes and you'd certainly have a long way to go for service. Of course your local dealer could service your tractor, but he'd likely put you behind his own customers when it comes to the priority stack.
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Bob, I see this all the time with car deals. Here in New England all the states DO have treaties. So we're required to collect 5% on a car in our own state, Massachusetts, when we sell to a resident of some other state.
If their state has a higher rate, they pay the difference there.
We collect the tax, then fill out a form with buyer's social security # and hand the money to the Dept of Revenue. They give a stamped computerized receipt which proves to the other state the tax was really paid.
That's how they get around the bogus bill of sale issue that would be rampant otherwise, all those $25,000 tractors that somehow sold for just $900.
