Sales Tax?? Out of State Purchase.

[Garandman]

Massachusetts is bad for purchases in New Hampshire. Especially for big ticket items like cars. Of course they get their residents when it comes time for registration.

We have company cars in NH and MA. NH Excise tax is much higher and we pay substantially more for commercial insurance in NH: about $800 per vehicle.

The real estate taxes we pay in NH are almost the same as we pay in Boston - for a house worth 4X as much. The big losers are the people who live in SNH, pay immense property taxes there, then sit daily in traffic to their jobs back and forth in MA, where they have to pay MA income tax.

All states suck, just in different ways. If someone proposed that MA create a state-owned monopoly on liquor sales, everyone would think they were completely out of their minds, yet NH and ME and other states do just that.

 

[Tractor Seabee]

Whenever I've sold my privately owned used vehicles, I printed the state sales tax form from DMV's website. I handed them to the buyer and told them to complete it as they see fit, and they were responsible to deal with any repercussions if they under reported. Not my job to collect sales tax for the state or to tell another person what to do when they leave my property with a vehicle.
I have yet to sell a vehicle for more than I paid for it, so there are no income tax implications on my end.

Signing a blank form is the same as signing a blank check. If the buyer puts in $0 and blue book is $10K then you are co-conspirator in the fraud.

Ron

 

[Threepoint]

Signing a blank form is the same as signing a blank check. If the buyer puts in $0 and blue book is $10K then you are co-conspirator in the fraud.

Ron

If the form calls for both the sales price and the seller's signature, and the seller intentionally signs and delivers it with the price blank, this is correct. Sure, its not the seller's responsibility to collect the tax for the state in that situation. But it is his/her responsibility not to knowingly enable tax fraud by signing an incorrect document to be used for registration.

 

[Cbgrant74]

These "use" taxes are patently unconstitutional. One of the main reasons we have the Constitution is that before it was adopted, under the Articles of Confederation, the states were engaging in trade wars with each other, levying tariffs on goods imported from other states. To put a stop to this, the Founding Fathers wrote the Commerce Clause, giving Congress the power to regulate Interstate Commerce.

Just because merchants in New Hampshire have a competitive advantage in that they can sell goods without a punitive 6.25% sales tax, that doesn't give Massachusetts the power to levy a tariff on those goods when they are imported across the state border (even if they call it a "use" tax). That power was intentionally reserved to the Congress in the Commerce Clause for the specific purpose of preventing interstate trade wars.

To my knowledge, no one has brought a challenge to "use" taxes to the Supreme Court using this line of argument, but it could get very interesting for state treasuries if someone ever did - I imaging refunding all of those illicitly collected taxes (plus penalties and interest, of course) could get pretty expensive.

 

[Cbgrant74]

These "use" taxes are patently unconstitutional. One of the main reasons we have the Constitution is that before it was adopted, under the Articles of Confederation, the states were engaging in trade wars with each other, levying tariffs on goods imported from other states. To put a stop to this, the Founding Fathers wrote the Commerce Clause, giving Congress the power to regulate Interstate Commerce.

Just because merchants in New Hampshire have a competitive advantage in that they can sell goods without a punitive 6.25% sales tax, that doesn't give Massachusetts the power to levy a tariff on those goods when they are imported across the state border (even if they call it a "use" tax). That power was intentionally reserved to the Congress in the Commerce Clause for the specific purpose of preventing interstate trade wars.

To my knowledge, no one has brought a challenge to "use" taxes to the Supreme Court using this line of argument, but it could get very interesting for state treasuries if someone ever did - I imaging refunding all of those illicitly collected taxes (plus penalties and interest, of course) could get pretty expensive.

 

[GManBart]

These "use" taxes are patently unconstitutional. One of the main reasons we have the Constitution is that before it was adopted, under the Articles of Confederation, the states were engaging in trade wars with each other, levying tariffs on goods imported from other states. To put a stop to this, the Founding Fathers wrote the Commerce Clause, giving Congress the power to regulate Interstate Commerce.

Just because merchants in New Hampshire have a competitive advantage in that they can sell goods without a punitive 6.25% sales tax, that doesn't give Massachusetts the power to levy a tariff on those goods when they are imported across the state border (even if they call it a "use" tax). That power was intentionally reserved to the Congress in the Commerce Clause for the specific purpose of preventing interstate trade wars.

To my knowledge, no one has brought a challenge to "use" taxes to the Supreme Court using this line of argument, but it could get very interesting for state treasuries if someone ever did - I imaging refunding all of those illicitly collected taxes (plus penalties and interest, of course) could get pretty expensive.

This really isn't the place for a legal/political debate, but this exact matter has been presented to the Supreme Court at least twice, and they have declined, saying it's a matter better examined by Congress, and the States.

Further, suggesting use taxes are unconstitutional is pretty silly. The Constitution limits Federal powers, and use taxes are entirely a State matter, so the Constitution has nothing to do with it.

 

[Cat_Driver]

And just think you get to pay the state too when you earn the money before you even spend it.

The best experience I've had was with the free coffee. Around the holidays certain chain convenience stores will give out free coffee. At one particular store I with coffee in hand went to register and said I am getting my free coffee you offer, sales clerk replied yes we offer free coffee but you still need to pay sales tax. Puzzled I asked "I thought I was getting a free coffee" You are was the reply but you need to pay the sales tax. You are joking I asked. No I need to collect sales tax was the reply.
So I asked how is this free if I am paying tax on this. The reply was the state still wants its money on value of product. I paid the few cents for a coffee figuring it was better than full price, but it pissed me off thinking I have spent nothing, somebody is giving me something free and I am still paying tax for that. So it isn't actually free and makes no sense half of nothing is nothing and 6% percent of 0, is still 0 unless there was a law to change mathematics. No sale=No sales tax! I suppose its that estimated value where they get ya. Go figure

I would have tried this one one them. OK the coffee id free - right, yes sir it's free. Well I don't want it for free I'm willing to pay a penny for the coffee. Now tax me on that penny.

 

[Threepoint]

This really isn't the place for a legal/political debate...[snip]

+1. Thank you.

 

[tractchores]

For MA NH folks who follow this thought I'd share some info. I got a demand letter from a NH dealer asking for MA sales tax for a purchase made 4 - 5 years ago. I'm sure many others are getting the same letter. Having had a company where the state audited us and demanded sales tax I'm familiar with what is going on. Basically the state has identified that the dealer wasn't charging sales tax and/or the dealer got nervous and "self assessed" and then needs to pay the tax. They go after the customers to get the tax and I'm sure if the customers don't pay then the state likely will go after them directly too (most people pay as it saves on the penalties).

Anyway a heads up for anyone else who may have bought from NH in MA and wasn't charged sales tax. If you 'self assessed' then it doesn't matter. This means that MA is probably going to be looking at all nearby tractor dealers (usually they go after certain types of businesses all at once).

 

[tractchores]

For MA folks buying in NH who follow this thought I'd share some info. I got a demand letter from a NH dealer asking for MA sales tax for a purchase made 4 - 5 years ago. I'm sure many others are getting the same letter. Having had a company where the state audited us and demanded sales tax I'm familiar with what is going on. Basically the state has identified that the dealer wasn't charging sales tax and/or the dealer got nervous and "self assessed" and then needs to pay the tax. They go after the customers to get the tax and I'm sure if the customers don't pay then the state likely will go after them directly too (most people pay as it saves on the penalties).

Anyway a heads up for anyone else who may have bought from NH in MA and wasn't charged sales tax. If you 'self assessed' then it doesn't matter. This means that MA is probably going to be looking at all nearby tractor dealers (usually they go after certain types of businesses all at once).