Buying from out of state?

[Gary Fowler]

I consider myself a fairly knowledgeable person on tractors, been driving them since I was 5 years old, but unless you can demo a tractor for a few hours, there is just a whole lot of stuff that the seller can camoflage to hide defects. Like putting extra heavy oil in to cover up a leaking seal or even hide an oil burner at least till the oil gets hot. You really have to know the machine and what the weak point are on used. Cant trust the hour meter either so the hours shown dont really give you the full picture as they can easily be replaced for a few bucks. For instance a new seat on a low hour tractor might be sign of much more hours on it than shown. Really clean engine- did he just steam clean the leaking crude off. What is that fresh paint trying to cover up? IF you dont really know tractors, you might be better off buying new. Used tractor prices arent that much less than new anyway unless you get a 20 year old one and they still arent cheap.

 

[JeffinNE]

You can avoid sales tax buying out of state, just like buying over the internet. However, read your state laws. Most states make it your responsibility to pay the sales tax that you owe when you do that. Technically it is illegal to buy across state lines and not pay taxes when you bring it home.

Charley is correct. Even though you don't pay sales tax at the time of sale, when it comes time to file your taxes you are SUPPOSED TO declare the sale/sales of these items and any items you bought on the internet and didn't pay state sales tax on.

When doing my taxes on Turbo Tax this year, a special section even pops up asking specifically about this.

There have been some local news stories recently on the amount of sales tax revenues States are losing each year on these types of purchases. While I would imagine VERY FEW people actually declare and pay this tax there doesn't seem to be a way to track these sales and get "caught". At some point in the near future State's will likely come up with a way to require these taxes be collected at time of purchase by the sellers and forwarded to the appropriate State--just too much lost revenue!

 

[MarkV]

Charley is correct. Even though you don't pay sales tax at the time of sale, when it comes time to file your taxes you are SUPPOSED TO declare the sale/sales of these items and any items you bought on the internet and didn't pay state sales tax on.

When doing my taxes on Turbo Tax this year, a special section even pops up asking specifically about this.

There have been some local news stories recently on the amount of sales tax revenues States are losing each year on these types of purchases. While I would imagine VERY FEW people actually declare and pay this tax there doesn't seem to be a way to track these sales and get "caught". At some point in the near future State's will likely come up with a way to require these taxes be collected at time of purchase by the sellers and forwarded to the appropriate State--just too much lost revenue!

I've always known it as "Use" tax and most states require it, they just can't enforce it. Some states have already reached agreements with other states and share information. If you happen to be in one of those states there can be hefty fines when they come back to collect. For the most part though it is an under enforced law.

MarkV