Internet/Out of state purchase & sales tax

   / Internet/Out of state purchase & sales tax #1  

NoviceguyInCT

Bronze Member
Joined
Feb 8, 2006
Messages
84
Location
CT, Litchfield County
Tractor
BX24 TLB & old JD 400, JD H140
Anyone have any comments on purchasing a tractor over the internet? Anyone done this? Anyone done it to avoid sales tax? I'd appreciate any comments good or bad. I'm planning on purchasing my tractor in state this month but wanted to get peoples input and if they'd do it again given the opportunity.

I really enjoy this site & thanks to all of you for your helpful comments.

Jim /forums/images/graemlins/laugh.gif
 
   / Internet/Out of state purchase & sales tax #2  
I don't know if your state does this, but in NY if you have a farm certificate (just a piece of paper saying you own property and that's what the tractor is for) you don't have to pay sales tax. Ask your dealer. I personnaly wouldn't purchase from the internet because I want to see and feel what I'm buying and I want the dealer I purchased from to do the warranty work if needed. When you purchase from a local dealer they are much more friendly when you need any type of help with your tractor and usally they'll bend over backwards to keep you satisfied. When you purchase other than where your getting the work done your gonna pay the big buck. Good luck to you on whatever your decision.
 
   / Internet/Out of state purchase & sales tax #3  
I bought mine over the internet once I picked the color. It was very easy and the dealer (Corriher) was very helpful and responsive. I would do it again for the savings I got.

I was concerned about the service I might receive for warranty but that question was never answered, I did the basic maintenance tasks for the machine and didn't need any warranty work.

The ony hitch in my whole transaction was getting the delivery driver to call me with an arrival time so I could arrange to get it off loaded, he had a regular flatbed trailer so I had it unloaded at a business and used a friends trailer to bring it home. It did have a nice 4" scratch in the loader arm but I've since duplicated it in other locations. /forums/images/graemlins/wink.gif
 
   / Internet/Out of state purchase & sales tax #4  
In a lot of states you have to declare the out of state purchase and either pay the slaes tax or pay a "use tax" which is the same amount as the sales tax.
 
   / Internet/Out of state purchase & sales tax #5  
Washington State is one of the states that has a use tax same as the sales tax, and they are really starting to clamp down on Big out of state purchases , one way is with UCC filing when a tractor in financed. So make sure you save enough to cover the tax, penalty and audit. If you didn't pay the tax just down load the form from the states web site. I'm sure they will be grateful /forums/images/graemlins/grin.gif
 
   / Internet/Out of state purchase & sales tax #6  
check some of yur PM's
 
   / Internet/Out of state purchase & sales tax #7  
I'm not sure about other states, but here in California you must pay the tax on an out of state purchase. However, since the out of state business isn't required to collect it, you are on your honor to self report the sales tax as "use tax" as already mentioned. No big deal most likely on a small item, but a new tractor, especially with a UCC filing, could get on the tax man's radar.
 
   / Internet/Out of state purchase & sales tax #8  
Ohio is the same, but we also have a farm use sales tax exemption for anything and everything purchased for farm use. My repair bills on the Cadet 1250 were exempt from the sales tax since I fed the lawn clippings to the sheep when pasturing the woods wasn't providing enough nutrients. They are great for reducing the undergrowth in a wooded area, BTW.
 
   / Internet/Out of state purchase & sales tax #9  
Jim, you did not say if your were interested in new or used. I bought a slightly used tractor after doing extensive research and know exactly what color-model that I wanted. Sales tax was not an issue for me. Although we had already purchased the Maine property, we were living in NH and they are a no sales tax state.

I searched for about six months looking for my tractor. I found it at a JD dealer in Alabama. I talked to the dealer several times and did some research on the reputation of the dealer. In the end, I purchased sight unseen, and had it shipped 1200 miles via regular freight carrier. My local dealer could barely be bothered giving me a quote, so I didn't figure he would be doing any service for me anyway. I did the regular maintenance myself and there has been no major problems with it. The local dealer gave me a quote of $22k for a new one with loader, and I paid $13k for one with 92 hours plus $1k for shipping. A great deal that I have never regretted.
 
   / Internet/Out of state purchase & sales tax #10  
I purchased a mini excavator from Pa last fall from a dealer and on ebay, I didnt buy it out of state as to avoid paying sales tax but what I saved on sales tax paid the trucking for me. I bought it from a dealer that has a 99% positive feed back, I was a little hesitant but he has sold to date 4000 plus items.It was a pleasant experience , The dealer said If I found anything didnt work as stated in description to call hm and let him know, well I have about 25 hours on it since purchase and everything works as promised.
 

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