Buying Advice Out of State Sales Tax Confusion

[cathy liebchen]

No sales tax on out of state buyer here

 

[jigs_n_fixtures]

I can go to Montanna, and buy a new truck and not pay any sales tax. the minute i try to register it, i get to pay the Idaho Sales tax. My Mom gave me Dad’S 69 F250. they lived in Nevada. I put it on a trailer and drug it home. The State of Idaho, wanted their 6% of the ”value” of the truck. We had a discussion about the taxable value of an old pickup that isn’t running. To me the value is basically sentimental. But not sure of a value you are estimating a taxable value.

Since they don’t register or title agricultural equipment. I’m not sure how things would work on a tractor purchase.

 

[Jstpssng]

I can go to Montanna, and buy a new truck and not pay any sales tax. the minute i try to register it, i get to pay the Idaho Sales tax. My Mom gave me Dad’S 69 F250. they lived in Nevada. I put it on a trailer and drug it home. The State of Idaho, wanted their 6% of the ”value” of the truck. We had a discussion about the taxable value of an old pickup that isn’t running. To me the value is basically sentimental. But not sure of a value you are estimating a taxable value.

Since they don’t register or title agricultural equipment. I’m not sure how things would work on a tractor purchase.

I'm supposed to either keep track of all untaxed sales and declare them on my state forms on April 15, or make a standard payment based on a percentage of my income. I also need to declare any purchase over $500 (?) which were untaxed... my logging winch comes to mind. I'm probably the only person in the state stupid enough to do so, but as far as I'm concerned it's just like any other bill.

 

[Torvy]

I can go to Montanna, and buy a new truck and not pay any sales tax. the minute i try to register it, i get to pay the Idaho Sales tax. My Mom gave me Dad’S 69 F250. they lived in Nevada. I put it on a trailer and drug it home. The State of Idaho, wanted their 6% of the ”value” of the truck. We had a discussion about the taxable value of an old pickup that isn’t running. To me the value is basically sentimental. But not sure of a value you are estimating a taxable value.

Since they don’t register or title agricultural equipment. I’m not sure how things would work on a tractor purchase.

No need to register the old truck unless you drive on public roads.

 

[Diggin It]

No sales tax on out of state buyer here

^^^ 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 some states don’t charge sales tax to out of state buyers.

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.

No need to register the old truck unless you drive on public roads.

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.

 

[bdhsfz6]

I live in PA very close to the NJ border. Sure, I can go out of state and work a tax break but to me, it's worth paying the tax and dealing local.

Establishing a working relationship with a local dealer has paid off for me anyway.

 

[jyoutz]

I can go to Montanna, and buy a new truck and not pay any sales tax. the minute i try to register it, i get to pay the Idaho Sales tax. My Mom gave me Dad’S 69 F250. they lived in Nevada. I put it on a trailer and drug it home. The State of Idaho, wanted their 6% of the ”value” of the truck. We had a discussion about the taxable value of an old pickup that isn’t running. To me the value is basically sentimental. But not sure of a value you are estimating a taxable value.

Since they don’t register or title agricultural equipment. I’m not sure how things would work on a tractor purchase.

We don’t register tractors so if you buy out of state, you just don’t pay sales taxes. Unless you volunteer to do so.

 

[jyoutz]

I live in PA very close to the NJ border. Sure, I can go out of state and work a tax break but to me, it's worth paying the tax and dealing local.

Establishing a working relationship with a local dealer has paid off for me anyway.

Very true. It’s good to have a local dealer relationship, but I bought out of state because the local dealer didn’t have and didn’t know when the unit I wanted would be in stock. I established a local relationship by buying a few implements and service parts items.

 

[Raul-02]

f 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?

Yes that is correct. You pay the tax in the jurisdiction where you take receipt of the goods tendered.
Want to pay no tax? Take receipt in a no tax state. you will have to trailer it yourself.

 

[jyoutz]

Yes that is correct. You pay the tax in the jurisdiction where you take receipt of the goods tendered.
Want to pay no tax? Take receipt in a no tax state. you will have to trailer it yourself.

It’s not a matter of no tax states. I bought mine in Colorado. They charge sales taxes to in state residents, 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. I also checked a dealer in Texas, but they wanted to charge me taxes even though I’m not a resident. It seems like every state has different laws for sales taxes on agricultural equipment.