Buying Advice I think I am being lied to, by a dealer.

[MikeD74T]

I was at a local equipment dealership ( located in New York state) yesterday, test driving a 5 ton excavator. When it got time to talk price, I mentioned that I usually buy my tractors from a dealer in Pennsylvania, (I live in New York) because his prices are the same, but the sales tax is 2.75% cheaper. He told me that the law requires that I pay the sales tax in the state that I live in. I told him, that I never had to do that before, and I have purchased 2 TLBs, and a tractor, from the dealer in PA. I left before I got too mad, and figured I would go to the experts. I know that you have to pay the tax, to the state you register a car in, but I never heard tell of paying tax for a tractor, or anything else to your home state. Before I embarrass myself with this guy, is he blowing smoke, or is he right?

Davy, In short you are responsible for the sales tax in the state you live in, the dealer is responsible for the tax in the state he sells in. If he delivers to your state he'll collect the tax of your state & forward it. If you take delivery in his state you pay their tax. Take delivery in NH where there's no sales tax & you'll both be happy, at least until your state comes looking for you. It's done every day by dealers of NHs surrounding states that deliver. MikeD74T

 

[davygp38]

Davy, In short you are responsible for the sales tax in the state you live in, the dealer is responsible for the tax in the state he sells in. If he delivers to your state he'll collect the tax of your state & forward it. If you take delivery in his state you pay their tax. Take delivery in NH where there's no sales tax & you'll both be happy, at least until your state comes looking for you. It's done every day by dealers of NHs surrounding states that deliver. MikeD74T

I don't Gamble much, but when I do, it is for low stakes. I think I will either hold off, until I get more of a down payment, or wait till I have enough cash to do a paperless transaction. And this folks is a perfect lesson in how high taxes stifle the economy.

 

[crazyal]

As Ductape said, NH is not known for it's low property taxes, but they are still lower than the property I owned in RI, where they also tax you at a 7% rate for sales on everything!

Of course the state has to get their money from somewhere, but if you keep your "overhead" lower than you don't have to charge sales tax.

Not to get political, but you should see all the MA residents who vote for all the social programs but come to NH to avoid the sales tax..... very funny.

Don't you guys get hit by your town each year when you reregister your cars?

 

[irvingj]

"Don't you guys get hit by your town each year when you reregister your cars?"

Yes.

I had a Blazer for over 30 years, most of that time registered in NH. And yes, I had to pay the "use tax" each and every year. This fee does go to the town, BTW.

Granted, it did diminish over time with the value of the vehicle, but it was still there, even after 30 years.

I sat down and figured it out once- I'd have come out quite a bit ahead if I'd purchased in VT and paid the ONE-TIME sales tax.

So no, NH isn't entirely tax-free.....

 

[Bird]

Don't you guys get hit by your town each year when you reregister your cars?

Not nearly as bad as some places, but for my 2001 Ford Ranger in Denton County, TX:

WINDSHIELD STICKER - $44.36
REG FEE-DPS - $1.00
REFLECTORIZATION FEE - $0.30
CNTY ROAD BRIDGE ADD-ON FEE $10.00
CHILD SAFETY FUND - $1.50
AUTOMATION FEE (LARGE CNTY) - $1.00

So a total of $58.16 to the state and county; no town or city fees.

 

[Diamondpilot]

I have no idea what it's like now, but when we were full time RVers, we used a mail forwarding service in Texas. But a lot of full time RVers used Oregon mailing address (mail forwarding service) because they could buy their RV in Oregon and not pay sales tax. We bought a new motorhome in Las Vegas, and of course, knew that we'd be paying the Texas sales tax when we registered it. So for aboutr $4,800 I can understand those who used Oregon.:laughing:

They just changed the law in Indiana about 2 years ago. They used to collect sales tax on RV's but now they collect property tax each year instead. So instead of paying say our 7% sale tax up front a $30,000 5th wheel like my neighbor has now cost him about $300 each year. The had a back log of people and tried to get them to just pay up on good faith which many did not. Now they are sending out letters.

Chris

 

[Diamondpilot]

I may be in the minority here but I wish they would do away with all income tax and just go to a strait federal sales tax. I know it would have to be high, something like 25%. This would be distributed by census data.

Now you would have the option to pay high taxes or not. If you want to spend every dime you make on eating out, clothes, new cars, ect you spend 25% of your income on taxes.

If you want to live like a hobbit, grown your own food, drive a 40 year old truck, and make your own clothes from the cotton you grow you dont pay nearly anything in tax.

I am sure it would need much refining but thats the jist of it. And I am sure plenty would still find ways to cheat it but its a thought.

Chris

 

[davygp38]

I may be in the minority here but I wish they would do away with all income tax and just go to a strait federal sales tax. I know it would have to be high, something like 25%. This would be distributed by census data.

Now you would have the option to pay high taxes or not. If you want to spend every dime you make on eating out, clothes, new cars, ect you spend 25% of your income on taxes.

If you want to live like a hobbit, grown your own food, drive a 40 year old truck, and make your own clothes from the cotton you grow you don't pay nearly anything in tax.

I am sure it would need much refining but thats the jist of it. And I am sure plenty would still find ways to cheat it but its a thought.

Chris

I like the Idea of a flat tax, but a 25% sales tax sounds like a "poor tax" to me. If Big business, and the rich couldn't "lawyer" their way out of it, it might work. People who can afford to go to other countries will do their shopping over there, and corporations will buy more out of country.

 

[ultrarunner]

I like the Idea of a flat tax, but a 25% sales tax sounds like a "poor tax" to me. If Big business, and the rich couldn't "lawyer" their way out of it, it might work. People who can afford to go to other countries will do their shopping over there, and corporations will buy more out of country.

But they still would need to get it passed customs to use it here.

 

[davygp38]

But they still would need to get it passed customs to use it here.

You mean like all those fellas hanging out in front of the Dunkin Donuts went through customs?