Buying Across State Lines

[Big Talker]

No Dealer here in S. GA has the tractor I need and won't until 9/15. A Dealer in AL has 3. Prices all the same (package deal). Can't wait until Sept. but the AL Dealer will charge me 2.75% AL 'Ag Tax". Question: Will GA be looking to charge some sort of Ag or Sales or any other tax when I bring it back here? I read the earlier string on this but all the comments seemed to end around 2007 and didn't mention GA. Any help appreciated.

 

[bmaverick]

Are you on a farm? Would it meet farm exempt tax status in your state? IF yes, then, you can be tax exempt for both states. Just need to fill out the paperwork at the AL dealer.

 

[fried1765]

Are you on a farm? Would it meet farm exempt tax status in your state? IF yes, then, you can be tax exempt for both states. Just need to fill out the paperwork at the AL dealer.

And ......keep a copy of whatever form you do fill out!

 

[Big Talker]

Thanks - I just called the State to see if I qualified or not. I sorta do - but borderline whether I can generate enough income ($5K/yr) to qualify for the Exemption. Ag guy said the Tax folks keep a close eye and if you fail the $5K Average, they'll yank your exemption certificate, audit everything and send a bill for all the $$ saved + interest. With the inconsistencies in the market, I'll need a lot more dirt and trees to cover the down years and keep the Revenooers away from door. Paying the $500+ in AL Ag tax is still less than GA sales tax. Thanks again for the inel.

 

[sea2summit]

No Dealer here in S. GA has the tractor I need and won't until 9/15. A Dealer in AL has 3. Prices all the same (package deal). Can't wait until Sept. but the AL Dealer will charge me 2.75% AL 'Ag Tax". Question: Will GA be looking to charge some sort of Ag or Sales or any other tax when I bring it back here? I read the earlier string on this but all the comments seemed to end around 2007 and didn't mention GA. Any help appreciated.

Is that a new tax? I just bout my last tractor on the AL side of the line and don't recall that in the final quote. But they also said they can't accept a GA Gate card on the AL side so sounds weird.

 

[bmaverick]

Thanks - I just called the State to see if I qualified or not. I sorta do - but borderline whether I can generate enough income ($5K/yr) to qualify for the Exemption. Ag guy said the Tax folks keep a close eye and if you fail the $5K Average, they'll yank your exemption certificate, audit everything and send a bill for all the $$ saved + interest. With the inconsistencies in the market, I'll need a lot more dirt and trees to cover the down years and keep the Revenooers away from door. Paying the $500+ in AL Ag tax is still less than GA sales tax. Thanks again for the inel.

You just need the TAX EXEMPT status for the year you would be buying the tractor. So, for the $5K, it can be ANYTHING farm related. That's how it was in TN, KY, IL and WI that I'm aware of. We only need $1K to show. Bummer GA is $5K.

Any livestock feed, processing, vet bills, etc. Even materials to build a tractor shed for the machine and a tiller. Just like the other posted said, KEEP all receipts. Plus photo copy them because receipts FADE to nothing due to cheap inks.

We raise just under 100 meat birds, that alone from the hatchery to the processor to the freezer gets us so close to the $1K.

Not sure about GA, but in many of the states, it's covered for even NON SALE use to reach the $1K for the family farm. Yep, regs are pain and not all the same.

Years ago, at TSC while looking at zero-turns, the sales guy said, if you pay in cash, it's only the KY sales tax and not TN. IF you pay by credit/debit, the bank will tell TN the transaction, thus needing to paying the revenooers. Long as there wasn't a VIN plate, cash was safe.

 

[Gator6x4]

You just need the TAX EXEMPT status for the year you would be buying the tractor. So, for the $5K, it can be ANYTHING farm related. That's how it was in TN, KY, IL and WI that I'm aware of. We only need $1K to show. Bummer GA is $5K.

Any livestock feed, processing, vet bills, etc. Even materials to build a tractor shed for the machine and a tiller. Just like the other posted said, KEEP all receipts. Plus photo copy them because receipts FADE to nothing due to cheap inks.

We raise just under 100 meat birds, that alone from the hatchery to the processor to the freezer gets us so close to the $1K.

Not sure about GA, but in many of the states, it's covered for even NON SALE use to reach the $1K for the family farm. Yep, regs are pain and not all the same.

Years ago, at TSC while looking at zero-turns, the sales guy said, if you pay in cash, it's only the KY sales tax and not TN. IF you pay by credit/debit, the bank will tell TN the transaction, thus needing to paying the revenooers. Long as there wasn't a VIN plate, cash was safe.

I think it is sales tax they are after. In NC the sales tax is 6.75 - 7.0 percent dependent upon the county in which you reside. Farm sales tax is 1-2 percent.

Adding 6.75 or 7.0 percent to a $60,000 dollar purchase can increase the cost by many dollars. Dollars the state and county are going to come after regardless if one charges of pays cash.

7 percent tax on the 60,000 purchase, $4,200.

2 percent tax on the 60,000 purchase $1,200.

Now we all know the bean counters are not going to let three grand slip away don’t we.

 

[bmaverick]

I think it is sales tax they are after. In NC the sales tax is 6.75 - 7.0 percent dependent upon the county in which you reside. Farm sales tax is 1-2 percent.

Adding 6.75 or 7.0 percent to a $60,000 dollar purchase can increase the cost by many dollars. Dollars the state and county are going to come after regardless if one charges of pays cash.

7 percent tax on the 60,000 purchase, $4,200.

2 percent tax on the 60,000 purchase $1,200.

Now we all know the bean counters are not going to let three grand slip away don’t we.

That's the reason behind using the TAX EXEMPT AG laws.

 

[TractorGuy]

I bought my used tractor at auction in Moultrie GA and they charged me 8% sales tax on top of the auction fees.

Don't know anything about Ga tax law but if AL doesn't report to them they probably won't know you bought a new tractor.

A quick search looks like if you bring a tractor in from out of state and do any commercial work with it you would owe use tax PLUS sales tax for the county you bring it into. Not clear if you get out of it if you are not commercial but my guess is they would want the sales tax for the tractor to be paid.

What is Subject to Sales and Use Tax?

dor.georgia.gov

The way it SHOULD work is the Alabama dealer should either waive or collect Georgia sales tax. IF the Alabama dealer has any dealers in Georgia this would most likely be required of them.

The last time I bought a car in Georgia they didn't charge any tax but I had to pay it in Florida.

 

[kantuckid]

Road vehicles having titles throws you in front of the collector in your state (in KY it's my county clerks office) who you request a new title from and tag the vehicle. It's a whole nuther ballgame than a tractor. It's a matter of if the dealer in the state of purchase can get by w/o collecting tax from an out of state buyer or not. Off road stuff-n some states it works, some not.