Sales Tax?? Out of State Purchase.

[Threepoint]

It would appear, that the only way to possibly sidestep the tax, is to pick the unit up on a private basis, like using your own trailer.

Unless there is some how a paper trail, thru the dealer that would eventually lead the revenuers to your doorstep.

If you yourself, or your Uncle Billy doing you a favor, pick up the tractor in a state that has a sales tax, and there's no ag or other exemption, the dealer is required to collect and remit that sales tax. If instead he winks and says, o.k. we'll say you or Uncle Billy is delivering it out of state for us, so we won't collect and remit sales tax, then not only is he liable to his state for the tax, he actually could be prosecuted for sales tax fraud. Not many dealers would want to run that risk. As for there being a paper trail in that situation, there always will be. The dealer would have your name and address, and (to protect himself) would have at the least noted prominently on the sales invoice that the tractor was delivered to X state. If he is asked by the neighboring state tax authorities to provide info on high-value deliveries to that state, he is not likely to say "none of your business." Do buyers and vendors often try to get around paying sales and use tax? Sure, all the time, and it's certainly possible to go undetected. But state revenue agents know the tricks, and it's their job to enforce the written law and go after tax evaders. I'm not making moral judgments here, as each of us has to make our own decisions on how to conduct our affairs. I'm just sayin' that high-value transactions are in their sights.

 

[Oaktree]

Dave--About 20 years ago, Maine used to have State Troopers watch the New Hampshire liquor stores to catch Mainers buying cheap and state tax free liquor. Then they would tail them as they came over the border and catch them as they drove into their yard. There was a huge public outcry and I think the program got canned.

Mass. used to do the same thing. I'm at the complete other end of the state, but I believe there is/was a state liquor store in Salem, just across the state line. Mass. troopers would do the same thing, only ISTR they'd park where they had a view of the parking lot (which was in N.H.). N.H.'s governor then had N.H. troopers shoo the Mass. troopers away, creating a bit of a psssing contest between the 2 states (nothing new). Things settled down after a while.

However, neighboring states have gotten quite vigilant about cross-border purchases, enlisting the credit card companies to rat out consumers who buy out-of-state big ticket items. My sister, who lives in Vermont found this out the hard way.

 

[Gary Fowler]

Here in Arkansas, there is no tax on farm equipment. Most dealers will ask if you are Ag exempt but don't ask for the paperwork. I carry a well worn copy of my Farm registration number just in case I am asked for it. Many items are tax exempt if you have a farm registration number ( You must have minimum of 10 acres to legally claim it as a farm), but many items like fence post and fence wire which is for sure a farm item, are not exempt. Really strange how the government figures what is exempt and what isn't.

 

[George2615]

What's not fair is paying sales tax on a used tractor that already was paid when new.

Same is true for used cars / trucks. Here in the land of taxes everytime a used vehicle is purchased the buyer pays sales tax on the purchase price of the vehicle even tho the tax was paid by the original buyer.

 

[kneedeep]

Live in Alabama, own farm in Mississippi. Bought tractor in MS delivered to farm and paid 1.5% AG tax.

Bought new tractor in AL in 2003, delivered to lake property in AL and only paid AG tax.


Pay AG tax at dealer to avoid issues. EVERYBODY has to pay tax somehow.

:confused3:

 

[orezok]

Be sure to obey the law and pay your taxes. The government needs the money to give all kinds of free stuff to millions of illegal aliens who broke the law to get here.

...and don't forget Corporate Welfare in excess of $100 BILLION per year!

 

[dave1949]

Taxes are always an entertaining topic. :laughing: I take it as a given that there will be some system of government and taxes to support it. The alternatives (kings, dictators and war lords) are not attractive; if history is any guide we are not paying too dearly. I think patriotism means compelling government to work efficiently and constantly re-accessing its scope.

The 1791 Whiskey Rebellion during George Washington's presidency was a revolt against a tax on distilled spirits, which primarily at the time was whiskey. The tax was levied to keep the nation solvent, including paying off the debts incurred for the Revolutionary War.

Whiskey Rebellion - Wikipedia, the free encyclopedia

Washington himself eventually traveled to PA to monitor the militia he raised to put down the rebellion against the collection of the "whiskey tax." George Washington was also a major distiller.

George Washington: Major Distiller of Whiskey
George Washington: Major Distiller of Whiskey
George Washington was apparently the largest distiller of whiskey in the new American nation during the late 1700s. In 1798, the year before his death, Washington’s distillery at Mount Vernon produced 11,000 gallons of whiskey and produced a profit of $7,500. That was an enormous sum of money over 200 years ago.

Washington began producing whiskey at the suggestion of his plantation manager, who was Scottish. The new distiller first began by purchasing a copper still, but his first batch was so successful that he bought three more stills and built a larger distillery.

Washington’s distillery fell into disuse and was torn down about 15 years after his death. However, five years ago, archaeologists began excavating the site in preparation for its reconstruction. A $1.2 million gift from the Distilled Spirits Council of the US is funding the archaeological work and will fund the reconstruction of the distillery, which will be open to the public as an educational exhibit upon completion. It will be the only 18th century distillery operating in the country.

 

[Jay4200]

Thinking about purchasing a tractor from one of two out of state dealers. Both dealers claim that there is no sales tax if they deliver out of state. I live in Pennsylvania. How "should" this purchase be handled?

True fact. Some states attach sales tax to out of state vehicle sales during registration, but since you're not doing that, no tax!!

 

[GManBart]

True fact. Some states attach sales tax to out of state vehicle sales during registration, but since you're not doing that, no tax!!

PA has a use tax for items purchased out if state, or online, so there absolutely is a tax required....this isn't the same as a car purchase.

You'll note they point out that if you're caught they add penalties on top of the tax required....and probably interest as well.

Use Tax

 

[Steppenwolfe]

I just bought a new 2015 Ford F250. I had to pay sales tax on the sticker price, NOT the sales price, figure that one out...