Dealers?

[rback33]

At the time the CAT dealer I spoke of was moving equipment back and forth, it WASN'T a violation of tax laws. It was just how things were done then. Anyone who runs a competitive business does whatever they need to do to lessen tax burdens. Under normal circumstances, we usually do so as individuals also. No moral oe ethical victory in giving away ones hard earned income, so long as that's done in compliance with the law.

I guess I was not real clear and you kinda hit on my point... If it's against the law it's one thing, but if it's legal to do and is fiscally beneficial then power to them. I am such a straight arrow myself.. I accidentally walked out with a $00.98 pack for screws from Walmart last month and walked through a freezing wind to go back and pay for them. Cashier thought I was crazy...

 

[MessickFarmEqu]

I've never heard of such a thing, maybe we don't have this law in PA.

 

[DonWorrell]

It is consider personal property tax here in Tennessee. My wife owns a store and the last day of the year she need to do an inventory of all stock on hand and equipment. Then she reports it to the city, county and state. They assess her a tax. It is actually called a "peronalilty tax".

In North Carolina you pay tax each year on everything you own, including your hunting dog, shotguns and any other personal property. In NC there is an exemption but if you go over the limit you pay a tax at the same time you pay your state income tax.

Yes in the south real estate taxes are lower than up north but they, the government, get their taxes from a different place.

Don

 

[daTeacha]

...I accidentally walked out with a $00.98 pack for screws from Walmart last month and walked through a freezing wind to go back and pay for them. Cashier thought I was crazy...


Tells you something about the cashier's sense of right and wrong, which is maybe why they work at Wallyworld, home of low wages and low/no benefits.

Regarding the question of taxing inventory, how about if that inventory is actually owned by the bank since the dealer got loans to bring the stuff to his lot. A lot of car dealers work on that basis. Is it yours if the bank holds a lein on it? Should you pay taxes on money you owe, too?

 

[Bird]

Regarding the question of taxing inventory, how about if that inventory is actually owned by the bank since the dealer got loans to bring the stuff to his lot. A lot of car dealers work on that basis. Is it yours if the bank holds a lein on it? Should you pay taxes on money you owe, too?

A bank holds a lien (mortgage) on my house and I still have to pay the taxes on it. I know the RV dealer had so called "floor plan" arrangement that I understand was similar to what car dealers do. If an RV was there for 90 days or less, the dealer paid nothing until it was sold, after 90 days, the dealer paid the interest only, and after 180 days the dealer had to buy the unit. I think the length of time varied some with different manufacturers. But back to the main point . . . the dealer had to pay taxes on the inventory on the premises.

 

[CumminsLuke]

I've never heard of such a thing, maybe we don't have this law in PA.

I'm with you, I and my father own two car dealerships in Missouri, and I also have never heard of such a thing. We do have personal property tax, but our inventory on our lots is not considered personal property, it is for resale. Now, the loaner cars I own, the trailers I own, and the trucks I pull the trailers with get taxed, but again that is personal property, not inventory.

 

[thunderworks]

I was in the bicycle business for 20 plus years in Kansas. For the first 15 or so, there was an inventory tax. Whatever inventory was in the store on December 31st was taxed. Felt weird. If you had a successful store, fully inventoried, it cost you significant money. In the 1980's, Kansas changed its' laws, and eliminated the inventory tax, but simultaneously, changed how it figured property tax on real estate. Frankly, I don't know which is worse. I still own a building where I used to operate the bicycle store. The tax load on the building is over $19,000 per year. It's incredible what I pay in county property tax now. The inventory tax was bad, but not as bad as the current system assessing real estate. I don't know what the solutions are. Governmental entities need funds, but somehow it seems screwed up.