Buying Advice Out of State Sales Tax Confusion

[Tinhack]

Where there is no physical presence in a state, physical retailers are not obligated to collect and remit another state's taxes for them.

That all changed a couple of years ago. Apparently, you haven't purchased items off Ebay or Amazon. They collect the sales tax on all items shipped to my state. No exceptions. To get it back, you have to file a request through the state comptrollers office.

In my state (Texas) vendors have a an incentive to collect sales tax. Texas allows the collector to keep about 17% of the sales tax collected. It's deducted at the time of filing (paying the collected tax to the state). That's free money! And they get to use the collected tax for up to a year. Although tax may be paid to the state monthly or quarterly depending on the amount collected. But the "sales tax discount" is still free money. :thumbsup:

 

[coldsteelva]

That all changed a couple of years ago. Apparently, you haven't purchased items off Ebay or Amazon. They collect the sales tax on all items shipped to my state. No exceptions. To get it back, you have to file a request through the state comptrollers office.

In my state (Texas) vendors have a an incentive to collect sales tax. Texas allows the collector to keep about 17% of the sales tax collected. It's deducted at the time of filing (paying the collected tax to the state). That's free money! And they get to use the collected tax for up to a year. Although tax may be paid to the state monthly or quarterly depending on the amount collected. But the "sales tax discount" is still free money. :thumbsup:

Amazon DOES have physical presence EVERYWHERE they open distribution centers - this is how the State AG's and taxing authorities forced this change. PS: My local MF/JD/Kubota dealer is NOT AMAZON

 

[mred2]

Most tractors/tractors, etc. will have a title. My loan has the tractor on it. In Alabama, items are taxed at point of transfer. Tractors are taxed at a reduced rate, auto or farm. Most of the time this is the same reduced rate. Auto is defined as anything with wheels that has a motor. If they take delivery in the state, the state tax must be collected. If we deliver to another state, we must by law collect that state tax. When we pay to the state, we get to keep 5% if under $100, 2% over that, with a max of $400 discount. Fee of 10% plus interest if paid late. They audit us every 3 years and will look at every equipment invoice. If the customer did not pay it, we have to. Every state is different. In Georgia and Tennessee we have to collect state as well as county sales tax.

 

[Motorboatin]

Amazon DOES have physical presence EVERYWHERE they open distribution centers - this is how the State AG's and taxing authorities forced this change. PS: My local MF/JD/Kubota dealer is NOT AMAZON

You might find this article interesting

New Sales Tax Rules Take Effect This Week In More Than A Dozen States

 

[fried1765]

Most tractors/tractors, etc. will have a title. My loan has the tractor on it. In Alabama, items are taxed at point of transfer. Tractors are taxed at a reduced rate, auto or farm. Most of the time this is the same reduced rate. Auto is defined as anything with wheels that has a motor. If they take delivery in the state, the state tax must be collected. If we deliver to another state, we must by law collect that state tax. When we pay to the state, we get to keep 5% if under $100, 2% over that, with a max of $400 discount. Fee of 10% plus interest if paid late. They audit us every 3 years and will look at every equipment invoice. If the customer did not pay it, we have to. Every state is different. In Georgia and Tennessee we have to collect state as well as county sales tax.

"Most tractors/tractors,etc. will have a title"
Not true! .... In most areas of the USA!
Bill of sale only!

 

[oosik]

Titles on tractors - - certainly NOT the case here in WA state. We make due with a bill of sale.

The government certainly isn't going to provide that service on an item that does not need a motor vehicle license/plate.

 

[johncanfield]

There is no "title" on any of my equipment - last year I bought a new $65k excavator - no title, just a bill of sale. My side-by-side UTV - no title, etc., etc. Buy out of state, pay their sales tax, haul it home. End.

 

[MossRoad]

When I lived in Portland Oregon avoiding WA state sales tax was a routine endeavor. If memory serves, Oregon has no sales tax and Wa has no income tax?

It a cottage industry, people trying to avoid both. Keeps the accountants busy.

Just before I escaped ..... there was a story about a woman who owned a bunch of mattress stores, like 8+10, a bunch. I believe The business and all locations were in Portland, just A couple miles across the river was WA.

Turns out a huge % of her business was in WA because customers would avoid WA sales tax. That痴 not legal and that won稚 MAGA.

Every time I give them a penny it absolutely gags me. I致e seen, first hand, the waste, corruption and apathy.

It痴 easy to spend other people痴 money!

We all know someone that makes "sport" out of not paying taxes.

 

[Diggin It]

We all know someone that makes "sport" out of not paying taxes.

People trying to cheat the system is why honest people have to pay more.

 

[mred2]

I may be wrong on most states as far as title, but I think most items financed required a UCC filing with the state. This registers the lien on the equipment.