Buying Advice Out of State Sales Tax Confusion

[ROUSTABOUT]

When you buy something in another state at wall mark do you get confused?

 

[daryelcorran]

I'm ready to purchase another new tractor from a dealer in PA, I live 150 miles away in MD. We are relatively close on pricing, but I'm now told that if I pick the tractor up there (which I'm ready to do) , I have to pay PA sales tax (even through I'm a MD resident). They further state that If they deliver it to me (~$800) then I have to pay MD sales tax. Does that sound right? has something changed recently?

If I pick the tractor up in PA and pay their sales tax, I may also be liable for my own state's tax when reporting my 2020 Fed/state taxes and effectively pay 2x the sales tax.

I've purchased many vehicles, tractors, etc. out of state, and worst case on a 'registered/tagged' vehicle they collect MD sales tax and remit on my behalf to my state. Best case, on an item that is not 'registered', they collect zero tax.

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??

thanks

you have to pay sales tax. It's the law.

 

[lman]

you have to pay sales tax. It's the law.

Ag exemptions apply in many states.

 

[finn1]

153 posts and there’s still confusion?

Must be a home schooled group

 

[Torvy]

153 posts and there’s still confusion?

Must be a home schooled group

Like many answers in life...it depends.

 

[IndyJay]

Like many answers in life...it depends.

Yes, some people actually think about and discuss things rather than accept what is doled out by their masters.

 

[jigs_n_fixtures]

Confusion reigns because it absolutely varies by State. And thee Federal Constitution guarantees free trade between States.

If you go across state borders, you hit a gray area. If I go to Montana to buy things, I’m supposed to keep track of how much I spend on purchases in Montana. Then when I do my Idaho income taxes I’m supposed to report how much I spent, and pay the 6% Idaho sales tax on that amount.

Right, that is going to have a high level of self reporting.

I guess that if you financed a new tractor, and they had enough issues, they decided to audit you, they might discover the purchase and make you pay the tax on it. it, I guarantee that the state legislature would at the request of the various agriculture lobbies tell them not to ever do that again. Because I would give ten to one odds that if they started going through the books of most large agriculture, and heavy Construction companies, they would find folks owing millions in sales taxes for out of state purchase. Which is why the state does not register, or title heavy equipment.

 

[ultrarunner]

Where bought, tax if any paid at time of sale, applicable exemptions, timing are all factors.

There was quite a write up about a newly retired buying high end car euro delivery and then taking stateside delivery not in home state and driving it around the country seeing sights and visiting family.

By the time the car reached his home state no tax due since he owned and operated it more than a year before it rolled into home state…

Of course if he lived in Oregon he could have avoided the year driving around.

 

[jigs_n_fixtures]

My parents bought a new Volvo, in 1969, and picked it up in Sweden, then did a hosted tour of Europe to get 5,000 miles on it. Best break in period you could dream of. They went form town to town, with a parts van of the parts which weren’t euro standard, and everywhere the spent the night had a Volvo dealership, and anything that was wrong with your car they fixed During the night. If you didn’t know how something on your car they would show you.

And, becasue it had 5,000 miles on the odometer, which you put on it, you got to import it as a used vehicle, and not pay the import duties. The cost of the trip was about $500 less than the cost of the import duties. So, you got a European vacation.

Volvo, then delivered it to your local Volvo dear for delivery. They still had to pay the local sales tax, but not having to pay the import duties was a good savings. And, they had a great vacation.