Do I pay sales tax to out of state dealer?

[Rick Jay]

Justaplain,

</font><font color="blue" class="small">( 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)</font>

I'm sure they do. /forums/images/graemlins/grin.gif

Unfortunately, it doesn't really matter what I think. The law is pretty clear. If you buy something out of state without paying sales tax to the state where it was purchased, and you bring it to Massachusetts to use it within 6 months of purchase, then you are required to pay the "use" tax. In good ol' Mass., if you payed 3% tax in the state where you bought the item, you're required to remit the remaining 2% to Mass D.O.R. to equal the 5% total tax! Unfortunately, if you pay 7% tax where you bought the item, you can not file for the 2% "rebate".

These laws were on the books before internet sales became so popular, and to the best of my knowledge, they haven't been successfully challenged, at least not here in Massachusetts.

Now...do you have to pay the sales tax? Right now it's left up to your own civic responsibility to follow the law. The wildcard in all of this is: Will your state find out about your out-of-state purchase? I think the larger the purchase is, and the more paperwork generated, the easier it is for "dem revenooers" to find out.

~Rick

 

[Anonymous Poster]

I can't imagine why the Florida dealer says he has to collect the tax. When I was actively in business, I shipped items all over the country and never had to collect the tax. I believe he is confused. Click into myflorida.com, look for the Dept. of Revenue, and give them a call.

Florida is a Use Tax state, which means that if you buy something out of state, you're supposed to declare it and pay the tax. No one I know does it. I have no idea how they'd enforce it. But, because it is a Use Tax state, and you're not going to use it in Florida, there's no way you should have to pay the tax. What you do with you home state is your business.

One situation that arises is with vehicles that have to be registered. I bought a car in NC, did not have to pay the NC tax, of course, but had to pay the FL tax when I got home in order to register it. But, this shouldn't apply to a tractor.

One thing is true - if a company does business in both states, they have to collect the tax, but send it (the tax revenues) to the state in which it's being used.

Frankly, I'd be a bit suspicious that this company is tring to collect a little extra profit...

 

[Anonymous Poster]

<font color="blue">( Unfortunately, it doesn't really matter what I think. The law is pretty clear. If you buy something out of state without paying sales tax to the state where it was purchased, and you bring it to Massachusetts to use it within 6 months of purchase, then you are required to pay the "use" tax. )</font>

[censored] /forums/images/graemlins/shocked.gif Where's my check book? I gotta write a check to the DOR right now! BWAA-HAHAHAHA! /forums/images/graemlins/wink.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/crazy.gif

 

[Justaplain]

TYCO I think is the name. He got nailed because he hung those paintings in his NY office and bought them thru his NH Company. The SEC was on his case anyway, that just helped. bcs

 

[pajoube]

I live in Montana, which does not have a sales tax. If I purchase an item in another state and have it shipped to me my understanding is that I have no tax to pay.
When I travel to Washington State, I can purchase anything without paying their sales tax as long as I remove it from that state and return to Montana. When I was in Seattle for a vacation I obtained a sales tax-exempt certificate (I think that is what it was called) which I showed as I made my purchases. In Spokane I just show my drivers license. I assume this would also hold true in other states.
PJ

 

[Anonymous Poster]

Washington is being very nice to you. Wouldn't happen in Florida or many other states. If one takes delivery of the item in the state with a sales tax, one pays the tax. If delivery is made to one's home, one doesn't. The reason is, even though one might have a valid drivers license from another state, how do they know where the item is going to be used? If delivery is in the sales tax state, they have to assume there's a good chance it will be used in that state. I'd love to show my Florida driver's license to be exempted from paying sales tax in North Carolina, where I have a cabin...

 

[Justaplain]

Some time ago Conn or Mass sent plain clothesmen to the NH liquor stores to take down plate numbers. When NH caught on the State Police{NH} ushered them out of state. /forums/images/graemlins/smirk.gif bcs
Also why do you suppose you see so many commercial trailers registered in Maine??

 

[Anonymous Poster]

I gought a tractor from a place in North GA, I had them trailer it accross the line into the edge of TN where we swapped it over to my trailer. No sales tax. If I had picked up the tractor in GA I would have had to pay sales tax.

 

[Soundguy]

In florida.. if your tractor is ag use.. you only pay like 2.5 or 3.5%.. not the normal 7%... But feed and ag farm supplies are no tax.. go figure..

Soundguy

 

[cowboydoc]

Actually you can not pay sales tax in North Carolina or any state. You need to fill out the paperwork and get a sales tax exempt certificate. You then show this when you buy stuff. The other way to do it if you have a business is to get a sales tax ID #. You show your certificate anywhere in the country and you don't pay sales tax. You can also do this with a federal tax ID # as well if you have a business.