Double tax ?

[JJT]

I've worked and lived in both NY and Mass, NY is worse than Mass on taxes. I'll take your flat 5% any day. NY deducts the trade in value for vehicles before they compute your sales tax, but then they take up to an 8.25% bite. The NY income tax is half again what it is in Mass.

 

[Junkman]

There are a few things that need to be known before it can be determined if the dealer is correct in his thinking. If the dealer is located in Massachusetts, I believe that the trade is deducted from the price of the new tractor. If the dealer is located outside of Massachusetts, and isn't registered with the State of MA for collecting sales tax, then the entire sale amount before the trade is taxable. If the dealer is registered with the State of MA to collect MA sales tax, then the net price is the taxed amount. I am assuming that the rules for tractors are the same as the rules for automobiles. I have searched the MA Department of Revenue website, but couldn't come up with any instructions concerning this. I do know that on the MA Sales Tax reporting form, line 2 is for "Sales for Resale/ Exempt Sales or Other Adjustments". I believe that this is where he would insert the amount of the trade when he reports sales taxes to the State. If you want a definitive answer, you can call the Massachusetts Department of Revenue, Taxpayer Service at 1-617-887-MDOR or Toll-Free in MA 1-800-392-6089.
Now, if you really want to save big on the purchase, you can take advantage of the upcoming MA Sales Tax Holiday August 13 & 14. This will allow you to purchase any item up to $2500 for personal use and not pay any tax on that item. If you purchase the loader and it cost under $2500, then there will be no tax. If you purchase the Mid Mount Mower, which sells for under $2500, there is no tax on that item either. There is no deduction for items that sell for over $2500 in this Holiday regulation. The other wrinkle is that it must be paid for during the Holiday exemption period. If you are financing the item the sales contract and financing must also be done on this Holiday. The rules for this Holiday are quite stringent and the dealer might not want to do separate sales for the loader and mid mount mower, but if it is done properly, you will have no problems. I suggest that you speak with the dealer of choice beforehand to make all the arrangements. You might not save on everything, but it will at least help you on some of the purchase. Junk...

 

[Alan L.]

In Texas, you pay sales tax on the net difference. At least thats true on motor vehicles - I would assume it would be the same for a tractor.

 

[RedRocker]

If you have Ag exempt property there is no sales tax on farm equipment here. /forums/images/graemlins/grin.gif

 

[SnowRidge]

<font color="blue"> (If you have Ag exempt property there is no sales tax on farm equipment here.) </font>

If you grow anything for sale for human consumption is pretty much how they describe it in TN. The exemption is on capital expenses of $200 or more, IIRC. You don't need an Ag number, or anything like that. You just sign an affidavit at the dealer, who keeps it on file.

 

[Junkman]

This morning I called the MA DOR and asked the question. The person needed to check with a higher up and came back with the answer that it is the net amount of the sale after the deduction is taken for the trade in. If your dealer still has questions about this, I suggest that he also contact the MA DOR to verify what I have just told you. As with any governmental agency, you might get two differing answers, but in this case, I doubt it.... Junk..

 

[mtrain]

In Ohio we tax the entire sale price of the new machine. And just a word of warning to those of you that are assuming that tractors are treated the same as cars, this isn't always true.
David /forums/images/graemlins/frown.gif

 

[milstencil]

JJT,
Having moved from NY to MA recently, I found they have this sneaky tax called an excise tax, 2.5% of the BOOK value each year payable to your local taxing authority. You may pay 8.5% at the sale, we pay 5% + 2.5% every year ther after for as long as we own the vehicle. Winds up being more than 8.5%.
I pay $17.50/yr on my 1952 Dodge pick up, and my new chevy truck will cost me $1000 this year in excise tax.
Go to PA, buy and trade your tractor, have a friend act as the trucking company, pick up the tractor and deliver to you. NO tax.
Rick

 

[czr]

I spoke to the Mass Dept of Revenue today. They said tractors are not considered a motor vehicle,so core charges apply." In essence, the core charge in an exchange sale is a trade-in. Only trade-ins of motor vehicles,trailers,boats and airplanes are excluded by statute from the sales tax. I guess that is called the cost of doing business in Massachusetts...