State sales tax.

JohnBoy45 · Jul 19, 2003

Hello, I'm in Tennessee which has sale tax near 10 percent and I'm looking for a way around the State Sale tax here. I'm not a farmer or have land to get around the States Sales Tax. If I buy out of state will I still have to pay Tennessee sales tax on a new B7500 Kubota Tractor?

Thanks, Terry43

normde2001 · Jul 19, 2003

By Tenn. law, if the out of state seller does not charge sales tax, you are required to pay "use" tax in Tenn., which is same rate as sales tax. Go to this site and click on "internet and catalog sales" in upper lefthand corner for more info. I don't know how they would know, or how many people actually do it, however.

ronjhall · Jul 19, 2003

Terry43
There have been several threads on State Sales tax on TBN.
Here is one. Click Here
Here is another. Click Here
If you buy a new tractor, some states are checking the warranty registrations to find new purchases in their states. /forums/images/graemlins/shocked.gif
If you do avoid the taxes be prepared to pay it when they find out you purchased out of state. /forums/images/graemlins/tongue.gif

normde2001 · Jul 19, 2003

They might not allow him to pay if they catch him. I believe the ex-ceo of Tyco Corp. is in prison for failing to pay either out-of-state sales tax or New York "use" tax on a few million$ worth of paintings. I believe I would "bite the bullet" and buy in a state with the lowest sales tax.

SnowRidge · Jul 19, 2003

</font><font color="blue" class="small">( Hello, I'm in Tennessee which has sale tax near 10 percent and I'm looking for a way around the State Sale tax here. I'm not a farmer or have land to get around the States Sales Tax. If I buy out of state will I still have to pay Tennessee sales tax on a new B7500 Kubota Tractor? )</font>

Hi neighbor! Well, almost.

Sorry, but I don't know of any legal way for you to avoid paying taxes, but I don't think you have to pay the full sales tax on a purchase as expensive as that 'Bota. If I remember correctly, the tax rolls off to the old rate somewhere around $2,500. It is still a lot of money though. Tax details should be available through the Tennessee's web site, http://tennesseeanytime.org/.

Another consideration is the value of purchasing from a good local dealer versus any potential savings by going out of state. In the long run, it may be cheaper to buy locally.

Good luck with your purchase.

SnowRidge

SageBrush · Jul 22, 2003

I feel for you, a 10% tax would really hurt. What is use tax?

Tenn:
"Use tax, at the same rates as sales tax, becomes due when the user and consumer of taxable merchandise does not pay tax to the supplier. Examples include purchases of tangible personal property for use from an out-of-state vendor who does not collect the tax, extraction from inventory purchased on a resale certificate for personal use and consumption. Generally, contractors become liable for a use tax on materials used in realty construction even when the contractee first purchases the materials on an exemption certificate. Use tax is due even on purchases made by citizens from another state which are not taxed by the seller."

How about a used tractor from a private seller, are those taxed again? I didn't see any thing on that site. Why are Tenn sales taxes so high? Alabama is 1.5% on tractors regardless of your AG status. Any other states like Alabama?

Slamfire · Jul 23, 2003

TN's sales tax ain't exactly 10%, and varies with the county. They added 1% on top of the 8.x% we used to have. I think it was our reward for trashin' the Capitol buildin' the last time the Legislature was considerin' an income tax. /forums/images/graemlins/tongue.gif

SageBrush · Jul 23, 2003

Well, the lack of income tax is good. When I was in Florida, I enjoyed the lack of state income tax. Can't remember what the sales tax was. FL really killed you on boats though. At one time boats over 28 or 30 feet had pretty high taxes. But, after killing the new boat market, they got rid of that big boat penalty. /forums/images/graemlins/grin.gif

frank_f15 · Jul 23, 2003

i know a guy that bought a tractor (used) from an out of state dealer, the dealer did not collect n.y.tax, and there was not warrenty.so the state could not check it. all i know is he saved about $1200 and did not feel bad about it. /forums/images/graemlins/blush.gif