wbonnell
New member
If I was to buy a tractor from a different state then I live in could I save sales taxes?? For instance live in Michigan and buy in Indiana.
Sales tax on new tractor?
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755inNY
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wbonnell,
Do a search on sales tax and you will find numerous posts on this subject.
Most states with a sales tax also have a use tax that requires you to pay the equivalent of the sales tax on items you buy from another state but bring into your home state.
Bottom line is you may be able to buy from an out of state dealer and have it delivered to your home thus avoid paying the sales tax from that state. But you are also likely to be personally liable for paying a tax in your state based on the purchase price. If you don't pay the tax, you might get away with it or you may have your state's tax authority breathing down your neck. This may happen very soon or years later with the associated interest and penalties.
Jeff
Do a search on sales tax and you will find numerous posts on this subject.
Most states with a sales tax also have a use tax that requires you to pay the equivalent of the sales tax on items you buy from another state but bring into your home state.
Bottom line is you may be able to buy from an out of state dealer and have it delivered to your home thus avoid paying the sales tax from that state. But you are also likely to be personally liable for paying a tax in your state based on the purchase price. If you don't pay the tax, you might get away with it or you may have your state's tax authority breathing down your neck. This may happen very soon or years later with the associated interest and penalties.
Jeff
Tarheelman
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You'll have to pay sales tax somewhere. Each state has its own tax rules. Generally the key question is "When does title pass from the dealer to buyer?" If you buy the tractor out of state (Indiana) and pick it up there at the dealer, you'll likely have to pay Indiana taxes. But if the dealer delivered the tractor to you in Michigan, title would normally pass when the dealer delivers the equipment and Michigan taxes would be due. Although he likely will not charge you sales tax, you would still be personally liable. Either way, some taxes are due.
In NC and other states, you may be eligible for a reduced rate. In NC, for example, if the unit is used for farming production, the tax is only 1% with an $80.00 maximum. You'll need to see if your state has special rates and possibly you may qualify for them.
Good luck.
In NC and other states, you may be eligible for a reduced rate. In NC, for example, if the unit is used for farming production, the tax is only 1% with an $80.00 maximum. You'll need to see if your state has special rates and possibly you may qualify for them.
Good luck.
unreconstructed
Platinum Member
Both replies above have it nailed. In Texas if you have ag use, then no sales tax is due. But if not, either sales tax or use tax will get you. /forums/images/graemlins/frown.gif /forums/images/graemlins/tongue.gif
Woody_NH
Silver Member
Sales tax?? We who live in New Hampshire (Live free or die) often forget all about that issue as we do not have such a tax. Nor do we have an income tax. So when my 3320 was delivered the bill was for only what I owed the dealer.
OK, I know that this does not help you as you live too far from NH and as others have noted, you state may have a use tax to nail you anyway. I just could not resist making note of that little advantage we have up here.
OK, I know that this does not help you as you live too far from NH and as others have noted, you state may have a use tax to nail you anyway. I just could not resist making note of that little advantage we have up here.
thatguy
Elite Member
If you finance the purchase the the mfg the will file a lien papers (not the exact term but close) with the equivilant of the State Corporation Commission in your state so they are listed as lien holders.. Once they do that mr tax man will follow up to make sure someone has paid the tax...
Tarheelman
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I hope you have a tight turning radius on your tractor because you'll need the entire state of New Hampshire to turn it around. /forums/images/graemlins/grin.gif
I also understand it gets a little chilly there in the winter. Sometimes you have to pay a little something to have the privilege of living there. /forums/images/graemlins/wink.gif
I also understand it gets a little chilly there in the winter. Sometimes you have to pay a little something to have the privilege of living there. /forums/images/graemlins/wink.gif
Mtrman
New member
I have a friend from Vermont. He bought his tractor in New Hampshire because of the "no sales tax". Well, about a year later Mr Tax man sent him a letter. He had to pay the sales tax plus a penalty /forums/images/graemlins/mad.gif Yes, he did finance it. I guess thats how they found him. The moral of the story is, you have to pay somebody.
Mtrman
Mtrman
jhortonvt
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Same thing happened to me with a hot tub I bought in New Hampshire when I lived in Maine.
The dealer manager was a friend of ours, we paid cash and picked it up ourselves (the manager and an installer followed us to our house). We installed it and enjoyed it for 2 1/2 years until we moved to Vermont.
Well about 6 months after we moved to VT we got a letter from Maine. They wanted the $400 sales tax plus $50 penalty. Turns out the guy didn't 'hide' the transaction very well and when Maine checked their books (as I'm sure VT and MA do to New Hampshire companies too) they found our sales record.
It was a great Christmas present /forums/images/graemlins/mad.gif
The dealer manager was a friend of ours, we paid cash and picked it up ourselves (the manager and an installer followed us to our house). We installed it and enjoyed it for 2 1/2 years until we moved to Vermont.
Well about 6 months after we moved to VT we got a letter from Maine. They wanted the $400 sales tax plus $50 penalty. Turns out the guy didn't 'hide' the transaction very well and when Maine checked their books (as I'm sure VT and MA do to New Hampshire companies too) they found our sales record.
It was a great Christmas present /forums/images/graemlins/mad.gif
RalphVa
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Have a friend here in Va who bought a tractor in NC. We don't have titles nor other taxes or controls on tractors here. Far as I know he didn't pay the Va sales tax.
Ralph
Ralph
