How much tax on tractors & other farm equipment?

[jdkid]

Hi ya
here in NZ we have gst(goods & service tax ) that runs at 12.5%if you run a biz you have a gst No that means ya can clam it back ,so if it was just for home use ya could not get it back .yes ya right it dose make for sore heads doing bookwork but on a lighter note about tax
a farm hand gose in the the drug store to buy some condoms, the shop owners says that will be $5.25 plus 25 cents for the tax.
the farm hand looks back at him and says" 25 cents for tax if they are that lose i'll tie them on with string!!!"
catch ya
JD Kid

 

[RPM]

I got taxed in PA - 6%.

I believe that in some states the definition of a 'farm' has to do with the size of the property. I seem to remember someone telling me that it is 20 acres minimum - that person was in Delaware. Anyone know how these rules apply?

 

[Snell]

Can only speak for New York State but they recently updated the "farmers exemption cert". It now includes horse boarding and where it previously listed specific exempt and non exempt items, it now gives the following broad definition.

Farm production means the production of tangible personal property for sale by farming. Farming includes agriculture, horticulture, viniculture, viticulture, aquaculture, silviculture or floriculture; stock, dairy, poultry, fruit, vegetable, fur bearing animal, graping, truck and tree farming; ranching; operating nurseries, greenhouses, vineyard trellises or other similar structures used primarily for the raising of agricultural, horticultural, vinicultural, viticultural, silvicultural or floricultural commodities; operating orchards; raising, growing and harvesting crops, livestock, and livestock products; and raising, growing and harvesting woodland products, including but not limited to timber, logs, lumber, pulpwood, posts, and firewood. Farm production begins with the preparation of the soil and, in the case of animals, from the beginning of the life cycle. Production ceases when the product is ready for sale in its natural state; for farm products that will be converted into other products, farm producton ceases when the normal development of the agricultural product has reached a stage whee it will be processed or converted into a related product.

Predominantly means more than 50%, measured, for example, by hours of usage.

Commercial horse boarding operation means an agricultural enterprise of at least 10 acres and boarding at least 10 horses, regardless of ownership, that receives $10,000 or more in gross receipts annually from fees generated either through the boarding of horses or through the production for sale of crops, livestock, and livestock produts, or through both such boarding and such production. Under no curcumstances shall this include an operation whose primary on-site function is horse racing.

 

[tsh3]

Charlie,
I live in Southern Maryland and shopped Fredericksburg Va. for tractors. The dealer was not going to charge sales tax if I would sign a form that said the tractor was used only for farming. We never got far enough into
negotiations to talk about pickup or delivery. I ended up buying the tractor in Md. and the tiller in Delaware.

Steve