Do I pay sales tax to out of state dealer?

   / Do I pay sales tax to out of state dealer? #1  

Deliberate1

New member
Joined
May 24, 2003
Messages
23
Friends,
I am completing my purchase of a used BX2200 from a dealer in Florida. I am not picking it up, but am having it shipped to me in Maine. The dealer calls me and says that he needs to charge sales tax despite the fact that I am not personally taking delivery of it in the state of sale. I did not think that sales tax was due under such circumstances, though I might have to pay a use tax or personal property tax where I live. Is this something peculiar to Florida, or am I just getting bad information? thanks.
 
   / Do I pay sales tax to out of state dealer? #2  
I doubt it you shouldn't pay taxes to state in which you don't live.. If you going to use it to put out a garden or light farm you won't have to period at least where i live..

or at least you should pay your tax rate same as buying car..
 
   / Do I pay sales tax to out of state dealer? #3  
In all of my business dealings over the years if a product is shipped across a state line via common carrier, it falls under interstate commerce rules. No sales tax can be charged unless the shippers state has a recipricating ageement with the purchasers state to collect sales tax or the shipper has a place of business in the purchasers state. In most states if the tractor is being used for ag, there is no sales tax.
 
   / Do I pay sales tax to out of state dealer? #4  
Just went through this myself.

If the State has an agreement with your home state, yes you pay taxes unless it is for farm use. In that case you sign a form and no taxes.

In my home state of NY horse boarding = agriculture so no tax for me /forums/images/graemlins/grin.gif Otherwise the PA dealer would have charged tax due to their agreement with NY state.
 
   / Do I pay sales tax to out of state dealer? #6  
This seems ot be a gray area in taxation. Here is an article on use taxes that says out of state purchases brought back into the state, or bought while on a trip to the state are taxed. However other articles say in an "e-commerce" sale, it is up to the sellers discretion whether to charge sales tax. Farm use sales tax is a whole nuther issue. In Ga., farm equipment sales are exempt if you have enough acreage to qualify.
 
   / Do I pay sales tax to out of state dealer? #7  
I used to live in FL. I think they like to charge sales tax on everything. They have no state income tax but make up the difference on a lot of other taxes /forums/images/graemlins/smile.gif I can vaguely remember a new law requiring sales tax on out of state purchases.
 
   / Do I pay sales tax to out of state dealer? #8  
Deliberate1,

Well, if your state has a sales tax and you don't pay tax to the selling dealer, then it is your responsibility to remit a "use tax" to your Department of Revenue. What is "use tax"?

Here's the link for: Maine D.O.R. Sales/Use Tax.

You can check to see if you qualify for an agricultural exemption, but in Massachusetts, you really need to derive income from your farm...and there may be a minimum acreage as well. Hopefully you have a better chance in Maine.

Many states have reciprocal agreements, so I don't know what the specifics would be between Florida and Maine. I know here in the great state of Taxachusetts, I would be responsible for remitting the "use tax" to Mass. D.O.R. at tax time.

Big Brother is watching. /forums/images/graemlins/frown.gif

~Rick
 
   / Do I pay sales tax to out of state dealer? #9  
Do you really think that all the people who go to the many malls in NH every weekend to buy everything from boose to refrigerators really pay sales tax when they get home???? bcs /forums/images/graemlins/grin.gif
 
   / Do I pay sales tax to out of state dealer? #10  
If you are saying the people shopping in the malls are from out of state, and because of that, do not pay sales tax in the mall, then they are "supposed" to pay "use" tax to their home state. That's how that CEO in NY, (my CRS is kicking in and I can't remember name or Co.), got nailed for buying $3 mil. worth of paintings with no sales or "use" tax.
 

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