I am a Georgia resident considering a tractor purchase. I received a quote from a dealer that was very good and he added that there would be no sales tax because it is farm equipment. I am not a farmer. I do not have a farm. I do have 3 acres and a gravel driveway that need maintenance from a tractor. I searched the web and found a form for the Georgia Dept of Revenue and farm machinery and equipment are exempt under certain pretenses. I am just thinking the sales tax will get added to the price in the end. Does anyone have experience with this issue? Does the state of Georgia interpret the rules liberally? No sales tax would mean a slightly larger tractor or accessories for me. Thanks in advance.
No sales tax in Georgia?
- Thread starter ffemt596
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jsborn
Gold Member
As a fellow Ga Res. When I bought my tractor 4 years ago the dealer did not charge me sales tax for the same reason you stated. as i understand it the dealer is resopncable to fill out the proper forms to keep the state happy and as long as this takes place there is no tax on farm equip. If the dealer does not charge you tax then he is filing the forms or he would be the one to have the problem for not collecting tax.
Hope this helps
Hope this helps
The buyer has to sign a form and include their address. I don't know exactly what it says because I don't care since I do farm, but the state{I've been told} can come back and collect the sales tax later if you don't farm. I have to demand the form sometimes because the dealers don't like to get in the middle of it. They think I might be lying to save the tax.
I'm not from Georgia but I'm a CPA. What Jello says sounds correct. The dealer isn't going to charge you tax as long as you sign the paper that says you are using the tractor for farming. So in your case signing the paper is a fraud.
If the dealer doesn't ask you to sign anything then don't pay the tax and let him worry about it. You may eventually have to pay if he gets audited ( a very big if) but it is his responsibility to ask you to pay the tax.
If the dealer doesn't ask you to sign anything then don't pay the tax and let him worry about it. You may eventually have to pay if he gets audited ( a very big if) but it is his responsibility to ask you to pay the tax.
3RRL
Super Member
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As long as you don't sign that form and the dealer doesn't charge you sales tax, it's his problem. Signing with the intent of fraud is another thing, of course.
Out here in California, as a business, if I don't collect the required sales tax, the State Board is coming after me to pay it. The seller has the responsibility to collect sales tax from the buyer. They go after the seller.
Out here in California, as a business, if I don't collect the required sales tax, the State Board is coming after me to pay it. The seller has the responsibility to collect sales tax from the buyer. They go after the seller.
EddieWalker
Epic Contributor
What is the definition of farming?
Here, I have timber on my land, and my land is taxed based on the value of the land, then the timber exemption is applied to my property taxes and the rate is lowered based on the exemption.
I qualify for farm exempt purchases for my farm to maintain the land and improvements that I make to the land. I'm not selling trees or doing anything special to them, just letting them grow.
With small acreage around here, like 2 acres, the house is taxed on the land it sits on. The rest of the land qualifies for the exemptions that are filed on it, and can be used for farming purposes if you farm, attempt to farm or fail at farming.
What are you going to do with the tractor?
Eddie
Here, I have timber on my land, and my land is taxed based on the value of the land, then the timber exemption is applied to my property taxes and the rate is lowered based on the exemption.
I qualify for farm exempt purchases for my farm to maintain the land and improvements that I make to the land. I'm not selling trees or doing anything special to them, just letting them grow.
With small acreage around here, like 2 acres, the house is taxed on the land it sits on. The rest of the land qualifies for the exemptions that are filed on it, and can be used for farming purposes if you farm, attempt to farm or fail at farming.
What are you going to do with the tractor?
Eddie
greggh
Gold Member
EddieWalker said:
Eddie,
In Texas the rules are set by individual counties. Some counties say you must have at least 5 acres some say 10 acres. In my case it is 10 acres. There may even be some that are less or in between. In any case to be exempt from taxes you have to have filled out an exemption form for the state. Your name will be on file and when you buy tax free they will pull up your name from the state records. I just went through this in November when I purchased my tractor. Now they pull up my name any time I purchase anything farm releated.
In Georgia I don't know the rules, but I would assume they may have similar ones.
firemanpat2910
Platinum Member
fl laws are close to ga on this, farm is very loosely aplied term. I am not one too rob my granny of her social security check, but I also dont lose any sleep about not being taxed on a tractor.
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redlevel
Gold Member
I think you are pretty well home free if you file a Schedule F (farm profit or loss) income tax return in Georgia. We don't have to pay tax on fertilizer, either.
