Buying Advice Dealers advertising no out of state tax...

   / Dealers advertising no out of state tax... #21  
States are trying to figure out how to get this use tax. They are losing revue like a sieve due to online purchases and have just started to enact laws to address this issue. Once the sales tax of online purchases are resolved it will perhaps help the retail brick an mortar stores somewhat. I don't know any way for states to get this use tax unless the dealership reports it to the state. At this point it is up to the individual to pay the tax on out of state unregistered purchases.

Nothing is going to help the retail brick and mortar stores. All they are becoming is showrooms where people go to look at stuff in person, then order from the cheapest seller.

That's why there has to be a shift in the way tax moneys are collected to fund public works like schools, roads, sanitation, etc... But that's probably a discussion best left for another thread in another forum.
 
   / Dealers advertising no out of state tax... #22  
Sounds like I need to ask the Wyoming dealer about that. I figured that since I've bought out of state vehicles that were not taxed until registered in my sate the same goes with machinery.

"Same goes for machinery"?
Really??
Machinery must be "registered" in your state? I think not!
If you persist in asking too many questions, you will eventually find the answer that you DO NOT want.
STOP looking for the WRONG answer....
Buy the tractor that you want, where you want.
 
   / Dealers advertising no out of state tax... #23  
I think you'll find that if out of state and paying 'cash,' you may well be ok to fly under the radar.

If financing, well, then there's a different paper trail and the finance company gets involved and your purchase is no longer 'silent' to your state.

Either way, I don't morally feel comfortable buying something out of state and then running to the nearest dealer expecting them to fix it on my timetable (whether they are obligated to fix it or not).
 
   / Dealers advertising no out of state tax... #24  
Ohio has a line on state income tax forms to pay sales tax on items bought out of state

Unknown to me, Wisconsin has a Use tax for such a thing. I bought a tractor from out of state, didn't pay tax which worked for me.

Then later I found out I needed to pay a Use Tax. I filed it and by then I was late, so I got stung with a penalty plus very high interest.

It is good the OP is hashing it out right now so he can avoid making a mistake.
 
   / Dealers advertising no out of state tax... #25  
"Same goes for machinery"?
Really??
Machinery must be "registered" in your state? I think not!
If you persist in asking too many questions, you will eventually find the answer that you DO NOT want.
STOP looking for the WRONG answer....
Buy the tractor that you want, where you want.
I will pay the taxes, really.
 
   / Dealers advertising no out of state tax... #26  
But, machinery isn't registered. Anybody out there live in a state that licenses tractors or other off-road machinery?

Ron
I worded the last sentence wrong. South Dakota nor Wyoming register machinery. I ment to say: since we don't pay taxes when purchasing vehicles in another state, I assumed it was the same for machinery. Sorry for the confusion.

So, I live in Wyoming and will be purchasing a tractor Wyoming. We have property in South Dakota where the dealer will deliver the tractor. He is not taxing the transaction but knowing the IRS like I do, taxes must be paid somewhere. That's what led me to the use tax due in South Dakota.

With that, when you buy from a dealer state and local sales tax apply. When delivering to another state, and the tractor is delivered outside city limits on rural property, local sales tax do not apply, just state tax. This is how South Dakota explained their use tax.
 
   / Dealers advertising no out of state tax... #27  
I'd question the honesty of a dealership so brazen as to advertise that its customers commit tax evasion.

+1 on this! Virtually every U.S. state with a state sales tax also has a state consumer use tax. Most (but not all) tax jurisdictions employ a "point of delivery" test, as distinguished from a "point of sale" test, for determining whether a vendor must collect sales tax from the buyer. A brick and mortar dealer in a state using the point of delivery test, say State A, who ships/delivers to another state with a sales tax, say State B, is not obligated to collect sales tax in State A. Nor, so long as he has no tax nexus in State B, is he obligated to collect sales tax in State B either. That's all fine and good. BUT, if he starts using the pitch "No out-of-state sales tax" as a marketing move, without simultaneously pointing out that the buyer will nonetheless owe consumer use tax in State B in the absence of some specific exemption, such as an agriculture or forestry exemption, he has crossed the ethical line, IMO. If he assumes that the buyer knows about the self-reporting requirements for use tax in State B, his sales pitch infers that the buyer won't report, and thus evade the tax. On the other hand, if the dealer assumes the buyer may not know about the use tax, then he is, at the least, being disingenuous, and certainly doing his buyer a disservice. If and when the revenuers in State B learn of the transaction, the back taxes, interest and penalties will be quite a shock.

As for whether getting tagged is likely, as state budgets get tighter and out-of-state purchases become more common, tax authorities are getting much more aggressive. Big-ticket items like heavy equipment and machinery are high-profile targets. Keep in mind that shipping manifests, purchase orders and sales invoices don't enjoy any privilege of privacy. Dealers operating near state lines, and most interstate trucking companies (think shipments of equipment like tractor implements), frequently are requested to cooperate with state tax authorities by providing copies (or digital data) disclosing sales and deliveries to residents in the inquiring state. I know of a number of instances where folks have gotten large use tax bills two or three years after the fact for purchases they thought were "tax free"! So much for the trade off for the inconvenience, and perhaps risk, of buying a tractor from a remote dealer in another state. :)
 
   / Dealers advertising no out of state tax... #28  
Not tractors or big equipment, but this is direct from New Hamshire's website .
Whether you want to plan a shopping getaway, an antiquing trip, or a solo trip to revamp your wardrobe, you’ll find everything you could ever hope for in New Hampshire without the hassle of paying taxes on your purchases.
It isn't uncommon to hear radio ads from merchants touting the no tax advantage of shopping across the border.
 
   / Dealers advertising no out of state tax... #29  
Tax Free New Hampshire. Live Free or Die.
 
   / Dealers advertising no out of state tax... #30  

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