Buying Advice Out of State Sales Tax Confusion

[lman]

I didn't pay sales tax. You don't pay sales tax for ag equipment here.

 

[Raul-02]

but no sales taxes on agricultural equipment if a non resident buys there. Makes no sense to me, but that’s how my sale worked.

What is the buyer is a resident?

 

[Raul-02]

I didn't pay sales tax. You don't pay sales tax for ag equipment here.

Same here but I wasn't going to commit fraud to get a few bucks off. I don't do ag. I garden for myself. Yah I could have put a jar of honey or store bought eggs out front for sale but that'd be a fraud too.

 

[Torvy]

No sales tax if you have an ag exemption in Texas.

 

[jyoutz]

What is the buyer is a resident?

They pay tax

 

[Raul-02]

They pay tax

the state legislators must expect the alien buyers to go home and pay their taxes.

 

[paulfun9]

All I can say, is I wish it wasn’t so confusing trying to keep up with everything. My husband buys where ever he feels he gets the best deal and doesn’t always put the paperwork in it’s proper place.
Come time to file taxes, I want to pull my hair out!

 

[TimberFarm]

Bought my tractor in VA and I am in NC. dealer told me if I come up there to pay for it and pick it up he has to charge me VA sales tax.
If he delivers it to me, I don't have to pay it.
NC I have to pay the tax to report it for personal tax unless I get an ag exemption...I think??
Anybody from NC?

 

[ultrarunner]

When we sold cars to from CA to Oregon residents we had to collect tax unless delivery taken outside CA.

Often that my meant the State Line...

We could hire transport or Dealership could transport/drive to Stateline.

 

[cathy liebchen]

^^^ False statement that could get someone in serious trouble.

You have a habit of making statements that are more opinion than fact.

Alabama Use Tax Rate - 2022​

https://www.tax-rates.org › alabama › use-tax
The Alabama use tax should be paid for items bought tax-free over the internet, bought while traveling, or transported into Alabama from a state with a lower sales tax rate. The Alabama use tax rate is 4%, the same as the regular Alabama sales tax. Including local taxes, the Alabama use tax can be as high as 7.000%

Consumers Use Tax - Alabama Department of Revenue​

https://www.revenue.alabama.gov › sales-use › consumers-use-tax
The consumers use tax is imposed on tangible personal property brought into Alabama for storage, use, or consumption in the state when the seller did not collect seller's use tax on the sale of the property. Local Consumers Use Tax Many cities and counties have use tax requirements patterned after the state law ...



But nearly all states have some kind of Use Tax similar to the above that puts the burden on the buyer and many have reciprocal agreements that report the sales to each other enabling collection if not properly reported.


But that doesn't mean you don't have to pay each year. Even if not registered or insured for road use, some tax vehicles as personal property and charge annually whether they ever see public roads or even if they don't run at all. The only way to avoid the annual taxes is to dispose of the junkers or pay a mechanic to write a statement that the vehicle is unrepairable and has no value.

No sales tax IN ALABAMA on out of state purchaser. Read more closely next time.

 

[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.

Showbox jiofi.local.html tplinklogin​

??

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.