NEW 2525 4WD w/ shuttle shift

[shvl73]

Kioti dealer is thirty+ miles away and here in Idaho. How can they compete when Oregon dealers don't have to charge sales tax?

You do realize you still owe tax on the Mahindra if your state requires it, don't you?
If the dealer gets audited, you might owe tax plus fines.

 

[Mr. Peabody]

No, I didn't know that. Both the Mahindra dealer and another Oregon Kioti dealer who I have been in touch with said that if I pay cash, there is no question about sales tax.

Are they wrong?

Many Idaho residents living adjacent to Oregon cross the stateline daily to do their shopping/purchasing in Oregon specifically for that reason.

I think that since I am paying for the tractor when I take possession, it may be a moot point about paying sales tax here in Idaho. Idaho doesn't require the registration of compact tractors, so there is no official state instrument in place for collecting the tax.

Hope I'm not wrong here. You've got me a little curious about this. Guess I'll find out soon enough.

jp

 

[jwcinpk]

It's an "IF" thing. If the selling dealer happened to get audited and your name came up the IRS/State Revenue Cabinet may look to you for the taxes, penalties, and intrest. It's a long shot that they will get audited but you never know. In most states you cannot legaly avoid paying taxes on an item simply because you buy it out of state. You simply defer the taxes to your home state.
That said, people do it all the time and save money.
Is there any way you could get an agricultural exemption? Some states require really low acreage requirements.

 

[shvl73]

There may be a legal requirement for the selling dealer to collect sales tax of the state that he delivers to, regardless of whether he actually does or not. I'm suprised he's delivering it and not requiring you to pick it up.

 

[DavesTractor]

This is such a common thing for states bordering Oregon. I don't know Idaho law, but if you live in California and buy in Oregon, you owe California Use Tax. The Oregon dealer is not obligated to collect it unless he has a presence in California, but the buyer would owe it. Check out your State Income Tax form, if like California it will have a line where you must declare such purchases. Most people don't declare it and evade the tax and most don't get caught, but it is still tax evasion.

 

[NewToy]

This is such a common thing for states bordering Oregon. I don't know Idaho law, but if you live in California and buy in Oregon, you owe California Use Tax. The Oregon dealer is not obligated to collect it unless he has a presence in California, but the buyer would owe it. Check out your State Income Tax form, if like California it will have a line where you must declare such purchases. Most people don't declare it and evade the tax and most don't get caught, but it is still tax evasion.

Tax evasion sounds so strong, I like temporary amnesia much better.
John

 

[Sergei]

The other thing that can possibly happen is a neighbor reports you with having a new tractor and before you know it the local tax people will stop by and say hello.

 

[shvl73]

I imagine its more likely nothing comes of it, however to think that a person in a state with a sales tax doesn't owe it if purchasing out of state, just seems a bit unusual.
I also don't think I'd be the first in line with a check either.

 

[DavesTractor]

Here is information regarding Use Tax in California.

 

[AchingBack]

Thanks for the warning commrade shvl73.