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

[Crazydad]

You wanted them to do the same thing your buyers were asking. How was he to know you didn't just buy property in Arkansas and were taking the tractor and other items there? Or to a family member there?

Exactly, I thought they were not going to business with me! I don’t think I would have, at least low price and tax free.

I just wanted to share my experience since Brunos was called out by name. They remind me of my business, family run, a mile or so off the interstate with low drive by traffic so you have to advertise heavy to build business. And then you have to figure out how to word your ads and compete on the internet so you can generate a phone call just to have a shot at a sale.

 

[Threepoint]

I should add they are OK with selling and shiping out of state without collecting tax. Since I was standing there asking about a package deal with a trailer to move it out of state myself then mentioned no tax everything changed. He got a blank look and stare and I thought I just blew the deal I was trying to make as it was hard to find someone willing discount everything including attachments. So after he asked if I had Texas license I quickly took it out and showed him then took him outside to show him my truck. Even then I could see he was still uncomfortable. [snip]

Nothing wrong with selling and shipping out of state without collecting tax if there's no obligation for the dealer to do it. And it's not the dealer's responsibility to affirmatively encourage a buyer to pay use tax in his home state, if there is one. My only criticism would be where a dealer aggressively uses the pitch "No state sales tax for out-of-state sales" without simultaneously pointing out that reporting and paying any use tax in the destination state, if applicable, is the buyer's responsibility.

In your particular case, I can see where adding a trailer to the out-of-state package might have momentarily caused some confusion for everyone. Since a trailer typically will have a certificate of title and require registration in the buyer's home state, the registration/sales tax will be collected by the Dept. of Motor Vehicles at registration. So there would not be any tax on the trailer collected by the dealer, even if the trailer stayed in Arkansas (unless perhaps the dealer handled the registration for the buyer).

 

[Threepoint]

[snip]

I think the no tax out of state window is closing fast.

Yep, it's already closed in the case of Amazon. :laughing: If the buyer's state has a sales tax, Amazon now collects it even if they don't yet have a taxable nexus there (which is increasingly rare). For years they lobbied against doing that, as did other online sellers large and small. As the story on the street goes, Amazon reversed course a few years ago when it decided they could use the issue to competitive advantage. Since their eventual goal was to have a distribution center, hence a tax nexus, in every state anyway, they went ahead and set up their internal systems to allow for handling the tax collection. For many other sellers, including the smaller ones with fewer resources, that process is a nightmare.

 

[Jstpssng]

Not the same, but similar to this discussion;
Maine man faces 5 years in prison for lying about pesticide sales | CBC News

 

[PILOON]

Generally the taxation should occur were the delivery takes place.
If you pick up U should pay taxes in that location (state).
If they deliver to your state and don't have a business address there the onus would fall on U to remit to your state

Often the vendor could ship U a brick to confirm out of state delivery even though you actually did a pick up.
That gets him off the hook and puts the onus on you to remit.

OK, I'm in Canada but that is a trick that was often used here and I presume it would also be used in the US.

Another solution sometimes exists if U do the pick up and that is to apply for a rebate from the selling location and then remit in your location.
It is all dicey and often abused but as states (and provinces) get more hungry for tax dollars they will do about anything to get their taxes.
While they will overlook small purchases high priced items like cars and tractors become a nice target.

I'll add that even online vendors like EBay have faced major battles on those out of state sales.
Canada forced EBay to disclose sales in order that it could collect our taxes as did many states.
Lawyers were the big winners!

 

[mred2]

In Alabama when you buy a tag for a new trailer, you must prove/or pay the sales tax for the state and county that you live in. If you already paid tax to different state or county, you will pay it again.

 

[D2Cat]

Not about sales tax, but I do know various state entities are interconnected to collect all they can.

Not too long ago I stopped by to register a canoe so I could put it on a state lake. Had to pay like $5, fill out some paper work and received the decals to put on the canoe. I never put the number on the canoe, never put the canoe on the state lake. A few months later I got my tax statement listing all the equipment, trailer etc. on the tax rolls. Listed was a boat, boat motor, boat trailer. I couldn't figure out where that came from. When I inquired, I discovered since I registered a boat I have to have a motor for it, and a trailer to haul it!

I filled the paper work out in one county in Kansas, that paperwork went to a distant county that dealt with fish and game. That county sent the information to the county I live in and I got the bill for what I didn't own!

They have a process to get all they can!!

 

[paulfun9]

Not about sales tax, but I do know various state entities are interconnected to collect all they can.

Not too long ago I stopped by to register a canoe so I could put it on a state lake. Had to pay like $5, fill out some paper work and received the decals to put on the canoe. I never put the number on the canoe, never put the canoe on the state lake. A few months later I got my tax statement listing all the equipment, trailer etc. on the tax rolls. Listed was a boat, boat motor, boat trailer. I couldn't figure out where that came from. When I inquired, I discovered since I registered a boat I have to have a motor for it, and a trailer to haul it!

I filled the paper work out in one county in Kansas, that paperwork went to a distant county that dealt with fish and game. That county sent the information to the county I live in and I got the bill for what I didn't own!

They have a process to get all they can!!

That’s is a crap shoot for them. They hope your the type who is afraid to question the bill and will just pay it. Many will even if the canoe gets slid inside their pick up truck and hasn’t an engine.
It has actually gotten to the point that I no longer get surprised when people tell me the things they simply just pay because they are afraid to make a wave let alone a ripple.
Some of the excuses they give me are more ridiculous that the minds on the people who send those type bills/statements.

 

[Pard]

Thanks for everyone逞ｴ replys an input on the topic. After much research and talking with my tax lady and visiting my local LS dealer I pulled the trigger on an LS XU6168C late Friday afternoon. The deal was to good to pass up on this 2019. Taxes paid in state! Lol With self leveling larger bucket, 3 remotes, radio with crappy speakers, ag tires widened to one inch shy of bucket width and loaded, free 50hr checkup, rear 3point lever, creeper gear and everything thing else standard on this unit I遏･ certainly happy with it so far. Again, thx for the help! I知 not seeing an option on my phone app to attach a photo or I would. Y誕ll have a great day

 

[fried1765]

In Alabama when you buy a tag for a new trailer, you must prove/or pay the sales tax for the state and county that you live in. If you already paid tax to different state or county, you will pay it again.

That is NOT common.
Most states will recognize it if you paid the tax at point of origin.
They will collect the difference though, if there is a difference.