How can this be ?

[DIRTROAD]

States are very broke right now!!

South Carolina is currently going back several years on out of state ATV purchases and collecting back tax plus penalty and interest.

I personally know of an individual in S.C. and one in N.C. that this has happened to.

North Carolina just filed a lawsuit against Amazon.com to get a list of every transaction with individuals in N.C. The reason is so that they can go after the buyers for tax evasion.

Be very careful what you purchase online or out of state now. If you don't pay the tax at the time of purchase it will probably end up costing you more in the long run.

States seem to be willingly sharing information because they are all facing budget shortfalls.

BUYER BEWARE!!

 

[shaley]

The dealer in North Eastern NC offered to deliver a tractor to VA and not charge sales tax. It's up to me to report it.
On the other hand VA has a sales and use tax, some of this stuff is down right stupid. The law requires that if you purchase snack food in NC while traveling up I-95 you must also pay use tax to VA if any of the food is consumed in VA.

 

[johnrex62]

In Texas there's no tax on tractors because they are for farm use.

I expect that the dealer also has a store in Virginia is why they collect the tax. I buy a good bit of stuff on the internet from out of state. If it is an organization with a store in Texas, they collect sales tax. SO, I obviously prefer companies with no store in Texas. Then the lack of tax makes up for the cost of shipping.

If the tractor is used for Ag purposes, and this use is defined vaguely here, it is tax exempt. If it is used for maintenance or non-farm use it is taxable. The distinction is the intended use.

About 25 years ago I did a temp job doing data entry for the State Comptrollers office. I was inputing case records from sales and road tax prosecutions where the owners had purchased vehicles and heavy equipment from out of state and not paid the Texas use tax. There were an awful lot of cases to put in that database. Just a heads up. :thumbsup:

 

[whodat526]

If the tractor is used for Ag purposes, and this use is defined vaguely here, it is tax exempt. If it is used for maintenance or non-farm use it is taxable. The distinction is the intended use.

About 25 years ago I did a temp job doing data entry for the State Comptrollers office. I was inputing case records from sales and road tax prosecutions where the owners had purchased vehicles and heavy equipment from out of state and not paid the Texas use tax. There were an awful lot of cases to put in that database. Just a heads up. :thumbsup:

i know in louisiana if u buy ag equipment (used on a farm not as a hobby) u are exempt from the state sales tax not the local sales tax or usage tax

 

[Kubota 2350]

On the other hand VA has a sales and use tax, some of this stuff is down right stupid. The law requires that if you purchase snack food in NC while traveling up I-95 you must also pay use tax to VA if any of the food is consumed in VA.

How about if you consume it in NC, and crap it out in VA, is that taxable in VA.

Government is way out of control.

 

[harpoonalt]

How about if you consume it in NC, and crap it out in VA, is that taxable in VA.

Government is way out of control.

lol....Good to start my day with a laugh. I writing your name in for governor!

 

[johnrex62]

How about if you consume it in NC, and crap it out in VA, is that taxable in VA.

Government is way out of control.

You may be able to avoid taxes if you capture your crap and return it to NC for processing. If you use VA resources to process it, then why wouldn't you pay taxes for it? :thumbsup:

 

[MessickFarmEqu]

All states require you to pay a use tax for out of state purchases because they can't impose the duty to collect sales tax on an out of state vendor - no jurisdiction if you will. But, enforcement of state use tax laws is difficult since it mostly rests on the buyer voluntarily reporting the purchase, except for something like a car where you have to register it in your home state.

We're actually getting audited right now and we're having to pay use tax on all kinds of things. No doubt the states are looking for lost revenue.

We have had some problems with the juristiction as well. Some of the New England states have been after retailers like us to force us to collect their sales tax. Right now we are collecting CT sales tax even though we have no location there. I am sure a lawyer could find a way around it but its just too expensive to try and fight so we just do it.

 

[kday64]

Hi all,

I did a little bit of research hoping to find away around paying taxes. This is what I discovered.

If I go to New Hampshire and buy my first tractor. I will never have to pay a state sales tax. However, Connecticut has an agreement with the state of NH that CT can audit NH sales looking for tax evaders. (Bastards!!!)

Once CT finds tax evaders they bill them under the "usage tax". The CT usage tax has the same rate as the CT sales tax but has a 1%/month penalty associated with it. (Bastards!!!!)

~k_day64

 

[DIRTROAD]

I just learned of another SC resident that purchased a Farmtrac tractor brand new back in 2007. He filed the proper tax form at the time to omit paying the sales tax at time of purchase due to agricultural use.

He just had to pay the back tax, plus penalty, plus interest on that tractor. The reason being because when he filed his state tax return for 2007, He did not show a profit or loss in regards to agriculture.

Unless you are a bonified farmer who files taxes as such, your best bet is to pay sales tax at the time of purchase or suffer the consequence.

I am now actually awaiting a tax bill from the state for previous purchases that I have made.

BUYER BEWARE!!!!