No tax for farm use???

[dicker]

I agree with the people who say that the purchaser is responsible. As part of my day job, my business does service work in people's homes. After the work was completed and the customer was presented the bill including the tax, she stated that "she does not pay tax".
I called the tax department a while later asking them how I would make out my quarterly tax return and they told me to add the tax to the bill and then deduct it as a bad debt. It is the responsibility of the purchaser to pay the tax, not the seller.

Richard

 

[MikePA]

If you have to ask if you are a farmer, you probably aren't. /forums/images/graemlins/grin.gif /forums/images/graemlins/tongue.gif

 

[RickO]

I know I'm not a farmer. That's not what I was asking. I have owned and raised livestock but that does not make me a farmer either. But I think it would qualify you as tax exempt.

 

[MikeBurr]

One other question to ask about sales tax - Here in Kansas, the sales tax is suppost to be at the rate of where the item is delivered, not sold. So, if you buy in a high tax area and live in a low tax and if it is delivered to your home, you should only have to pay the low tax rate.

 

[MessickFarmEqu]

I was with a group of dealers about a week ago and we where talking about just this topic. Being close to many state lines we all face this issue on a regular basis and no one seems to completly understand the implications of this. We all agreed that out of state customers remit tax to their own state and AG use customers don't pay if they sign the form. From a dealers perspective thats all you care about. The fine for either party not remitting tax when it should be is 1.5x the purchase price... so on a $10,000 tractor, you would have $600 in sales tax and a potential fine of $15,000! From that same converstion there was also a rumor of a dealer not far from us that we all knew sold at profit margins of $2-300, suspecion was that he was put out of business for not remitting tax that he was collecting. Lesson is... don't screw around with this stuff!

 

[Soundguy]

In florida.. you pay 2.5% ag tax if you have agg classified land.. etc.

Also.. no sales tax on feeds, hay, and some livestock meds.

Soundguy

 

[rozett]

In another thread on this same subject, I provided a pointer to the Streamlined Sales Tax Project. The stated purpose is to simplify the nation’s sales tax laws by establishing one uniform system to administer and collect sales taxes. I believe that 35 states plus DC are a part of this. One of the things they have agreed to is

</font><font color="blue" class="small">( Sellers are relieved of the “good faith” requirements that exist in current law and will not be liable for uncollected tax. Purchasers will be responsible for paying the tax, interest and penalties for claiming incorrect exemptions. States will have a uniform exemption certificate in paper and electronic form. )</font>

Although not stated anywhere, this system will make it VERY easy for states to monitor out of state sales to insure collection of taxes. The states all recognize that they are losing millions in sales/use taxes because of the internet. They are trying to plug the holes.

 

[KiotiJohn]

Rick, I don't know the tax laws for that state, but generally, your land must have an agriculture (green) classification, and you must be in the pursuit of profit in the farming industry to receive an exemption. John

 

[LBrown59]

</font><font color="blue" class="small">( Rick, I don't know the tax laws for that state, but generally, your land must have an agriculture (green) classification, and you must be in the pursuit of profit in the farming industry to receive an exemption. John )</font>

Here I could have bought mine tax free if my land was at least 7 acres.
Has nothing to so with use of land or pursuit of farming.

I could have also bought tax free if I had kept my vendors license.

 

[OkeeDon]

<font color="blue">"I could have also bought tax free if I had kept my vendors license." </font>

You could have bought it tax free with a vendor's license, for resale purposes. However, if you converted it from a resale product to a personal use item, in other words if you used it, you would owe the same tax you would have paid without the vendor's license. Any time a vendor takes anything out of inventory for use, either personal or for use in the business, the tax is owed as if it had been purchased without the vendor's license.