How much tax on tractors & other farm equipment?

[TBone]

I was reading a post on another forum (ytmag) the other day and somebody made a statement that they could buy an old tractor cheaper than they could pay the taxes (I assume they were talking about sales taxes) on a new one. In Mississippi, the sales tax on all farm equipment is 1%. In neighboring Alabama there is no sales tax on out of state sales. I think residents pay 1% there but I'm not sure. I just assumed all states had low sales taxes on tractors and farm equipment but now I'm wondering. How much are sales taxes (are there other taxes?) on tractors where you live???

 

[cowboydoc]

TBone,
In Iowa, MT, ID, OR there is no sales tax if it is for farm use. You have to claim that you are using it for farm use when you buy it and fill out a short farm saying who you are and your address.

 

[TBone]

Thanks, CowboyDoc - I went back and re-read the post and this guy was a collector/restorer. That might be the reason the taxes were high. I guess he couldn't claim farm use. It didn't say where he was from and I was just wondering. I guess some states assume all tractors are for farm use, even though a lot of them arn't. TBone

 

[cowboydoc]

Yea if you aren't farm use though in the states mentioned they will charge you just like a car, well not OR and MT because they have no sales tax. I got audited on my lawnmower and bagger that I bought because I claimed farm use on it. I said look I mow twice a week and all the grass goes to feeding my cows, I really do feed it to them, neighbor does too. I also use it to mow in the paddocks and around the barn and fences. They said oh ok then and there was no more problem. What was interesting though is that it wasn't the fact that I used it to the extra mowing but that I fed the grass collected to the cows. That was what qualified it, go figure.

 

[TBone]

I had not thought about it but I definitely paid full sales tax (7%) on my riding lawn mower - 14 HP. I don't know if our equipment is considered farm equipment past a certain HP rating or what criteria they use - had never thought about it. I haven't owned a small tractor that could be considered non farm use except a few riding lawn mowers.

 

[scruffy]

Oregon doesn't have a sales tax at all. Only one of two states in that category.

 

[Muhammad]

Yeah, if you have a farm use there might be a 1% tax or something, or exemption, but otherwise normal sales tax applies... where I am in NY, it's 8%. (Yeah, ouch. /w3tcompact/icons/blush.gif)

 

[PBMAX]

TBone, you are correct about the 1% sales tax in Alabam.If the tractor is for farm use.I made sure,when I bought my Lil Blue NH TC21D, to ask about sales tax.The dealer said 1% if used for farm and 3% if used for landscaping buisness.I didn't ask about any others.I was also told that when buying a riding mower here in Bama the tax is less than the usual 8% if it is 15hp or more.Though I don't recall how much less.

Lil' Paul
Proud owner of TC21D
Laziness is the Father of invention.../w3tcompact/icons/laugh.gif

 

[ddl]

In MO. If you live on a acreage and you buy a tractor or equipment for the tractor, all you do is sign your name on the reciept and you are not charged tax at all. When you buy a car or such, they charge you the sales tax rate where you live not where you buy the car. This really surprised me since the county tax without city tax makes a big difference in cost.

Dan L

PS Cowboydoc what is a short farm and how does it compare to a long farm? I bet you type too fast for your computer to keep up and the computer gets confused, at least that is what I tell my students!!

 

[tsh3]

Here in Maryland there is no sales tax on farm equipment. If the dealer believes that you farm, then he just doesn't collect tax. If he questions you, there is a form to sign. If we buy something from out of state and don't pay sales tax, we are supposed to voluntarily send in a 5% use tax. Next door in Delaware there is no sales tax on anything.

Steve