buying in DE tax free?

[Ramairfreak98ss]

I know i asked this once before, and dont think i got a strait answer months ago.

I live in NJ, we now have sales tax of 7% up from only 6% last month. I pass the JD dealer in DE when traveling down RT13 at least once a year so i know where its at and have stopped in there before.

What would stop me from just buying my tractor there so i could save money on not having to pay nj state sales tax since ive purchased out of state? Surely there is nothing wrong with this right? It would be the same as buying any non-motor vehicle item from a tax free state such as tractor accessories, car parts, computers, expensive things from home depot and lowes, washers, dryers etc? I think the tax alone on a 3320 tractor is over $1500 that i would have to either pay up front for JD financing or finance that amount too. I have equipment to pick the tractor up.

Would the local dealer refuse to do any repairs on the machine if it were to break under warranty? Are they reimbursed from Deere just like Ford or GM car dealerships are regaurdless of dealer?

I almost purchaed my ZTR lawn mower for my business out of state but for the good deal i got in NJ at my local dealer and only saving $~450 in tax, i just bought it.

 

[Bob_Skurka]

You legally are required to pay the tax to your home state, it is called USE tax, not sales tax. Not to do so is tax evasion. Many people do not understand interstate commerce laws and internet sales tax laws. There is a big legal difference between the dealer not being required to collect the tax and you not having to pay the tax. If he ships across the state line, then he does not have to collect the tax. But you still have to pay it. The difference is you pay it directly to your state and it is no longer called 'sales' tax, it is called 'use' tax. Some folks probably get away without paying the tax. Some folks here have gotten a very nasty surprise a year or two after buying their tractor when they recieve a tax bill from their state for the tax due. Some here have even gotten a tax bill with a penalty and interest added to the tax. If you do a search here on TBN about tax evasion or sales tax you will find a lot of discussion on it. Many folks take a position of 'screw the government' and many are simply un-aware (as you are) about the sales and use tax laws. Bear in mind that these folks are giving you tax advice. You might want to talk to an accountant for REAL advice. Almost every state has both 'sales' and 'use' tax laws on their books, some states have agricultural exemptions, however from your post, I would guess that you do not qualify for any exemption. It should also be pointed out that many states have 'reciproicity' agreements with other states to catch tax evaders for big ticket items and if you finance the tractor your chances of getting caught are dramatically higher than if you pay cash due to the filings that are made by the bank or finance company which will be made in your state. . *** Disclaimer *** I am not a tax accountant, I am a businessman who also testifies as an 'expert' in both court hearings and in front of several state, local and county legistative bodies to testify on the excise tax issues, cross state/border tax issues, and the effects they have on consumer behavior and businesses. I am only suggesting you to talk to an accountant in your state if you want a legal answer to your question.