Sales Tax?!?

[JDFANATIC]

Hey Guys!

Let this post run a few more threads and I bet I can tell each of your political pursuations! Guess where mine run?

Where's Boston? We need a modern-day tea party!

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[Gary_in_Indiana]

<font color="blue"> "What is a Use Tax?" </font>

This is an unofficial, lay answer, but here goes. It is essentially the compensation for your use of the item which was not purchased in the state on which no sales tax has been paid. It also is something a retailer who purchases goods with a tax exemption is to pay when he removes those items from inventory for personal use or consumption.

 

[GV40U]

Actually, you do have another choice.

Oregon and Montana are states with no sales tax. In some cases, you can buy a tractor in a sales tax state, in my case Washington, and have it delivered or even deliver it yourself to a non-sales tax state and avoid paying the sales tax.

I am a Washington resident but my agricultural/timber property is in Oregon. I was able to buy the tractor in Washington (long term relationship with a good dealer) then move the tractor directly and immediately to Oregon and avoid paying the Washington sales tax because it was purchased for use in another state.

There is a catch...if I decide to haul it back to Washington for any use I would have to pay a Washington use tax (equivalent to a sales tax). I can bring it into the state for service/repair without paying the use tax providing I don't use it.

I checked this out with WA dept. of Revenue prior to purchase, however I fully expect to receive a follow up letter from them asking for verification of delivery to and use in another state.

 

[Deerlope]

If you live in NY and buy a tractor here and use it to help produce any product that you sell (even just 1 cord of firewood) then you are tax exempt. I would mine in my sugarbush. Make maple syrup, thin the trees,etc. All I had to do was sign a tax exempt form.

 

[hennydamule]

I think that here in CT, you need to sell something like $2000 or $2500 worth of produce per year to be considered a farm, and therefor be exempt, but I'm not sure about that, just info. from a neighbor. But you can bet I'm going to check it out. /forums/images/graemlins/grin.gif

 

[RMAL]

Deerlope,I like the firewood idea.Umm...maybe I will start a firewood company,pay no state tax,have more items to deduct on my income tax.Bob S ,I will be sure to report my sales as income come tax time,you were right doing things legal is the best way.
Al