Tax Mistake

[rozett]

A number of years ago, Massachusetts sent plain-clothed state troopers into Nashua, NH to watch the state-owned liquor stores. They would radio ahead to troopers waiting on the highway. Folks would get pulled over and arrested for carrying too much liquor across state lines without paying the state tax. But NH didn't want to lose the revenue. So the Nashua PD started arresting the troopers for loitering, illegal parking, etc. Massachusetts finaly withdrew the troopers. I'm sure that there were some heated discussion between the governors, mayors,etc.

 

[Anonymous Poster]

Here in Texas if you sign a statement that you are purchasing the equipment for use on your farm, there is no sales tax. I know this because I just bought a new tractor and no sales tax was charged by the dealer. Be sure and check to see if your state has the same provision. Good luck.

 

[Ozarker]

Nothing like that has ever happened to me but I believe I would fight that if it ever did happen. As long as I complied with the law where I made the purchase and the purchase was for personal use, not for resale, I believe the Constitution prohibits states from adding a tariff for interstate commerce. Forcing me to pay an additional tax on a product before bringing it into the state is a tariff.

Missouri tried to force me to pay sales tax on a car I bought in Germany once. I objected on the grounds that they are not entitled to collect sales taxes on the vehicles of people who move to the state from other states so they were not entitled to collect taxes from someone moving from another country into the state. The tax was waived.

 

[rozett]

There are laws that limit how much alcohol and cigarettes you can take across state lines for personal use. Primarily because of the differences in state taxes. My recollection is that it's 2 cartons of butts and a case of liquor (but that's only my memory). These guys were targeting folks that loaded many cases of liquor in the car... like in preparation for a party.

I grew up in CT and went to college in FL. Many of us stopped in the Carolinas to load up on smokes, fireworks, and booze. We never had any trouble. At least not in transprting it. /w3tcompact/icons/grin.gif

 

[Ozarker]

I am aware of the law. It is similar to the law concerning the import of liquor and tobacco for personal use when entering the country. I have had to pay additional import taxes because I had too much wine entering the country before. My wife likes various European wines.

My position is that the Constitution prohibits such additional import taxes between states and that states have no authority to tell me how much I can purchase for personal use.

I see it as the same when one mail orders from another state or internet purchases. As far as I am concerned, the state has the authority to tax what is sold within it's borders but the reality is that we do not have a national consumption tax. Therefor, in my opinion, the state has no authority to tax anything sold in another state and the constitution forbids tariffs at the border between the states.

Missouri law prohibits the sale of alcohol or tobacco without state tax being paid. It does not prohibit the consumption of those items without state tax being paid. So it shouldn't matter how much I have as long as I am not violating the law and selling it. I should be able to consume it or serve it to my guests without interference from the government. If the problem is a lower tax in the next state.......well, that is called competition. The high tax state should lower the tax and compete for my business.

 

[DUMBDOG]

Everyone has their own views, even is sometimes they contradict the laws of the land.

Is this not what makes this country great, the right to disagree?

 

[Ozarker]

I didn't think we were disagreeing. You said what the law is. I said that the law violates the constitution. The Constitution is the law of the land, not state laws.

 

[rozett]

You and I are in violent agreement!

 

[Ozarker]

That's a good one. I don't remember ever being in violent agreement with anyone before. Been in one or two violent disagreements in my time. That was when I was much younger and healed quicker.

 

[DUMBDOG]

I do believe that we are in disagreement with the state laws to tax purchases that are not made in their domain.

 

[LBrown59]

</font><font color="blue" class="small">( I have often pondered this question myself. I asked a local JD dealer about (one with a shop in both ME and NH. He informed me that the State of Maine can go audit anyone's books in NH at any time. I agree that the UCC was probably a giveaway.<br>Anyway, this JD dealer also told me that if you do not pay the tax, you can be, as stated previously, cited for tax evasion. This is a federal offense, meaning that, if charged, you would lose your right to own firearms for one, and could even do some time. )</font>

This is a federal offense, meaning that, if charged, you would lose your right to own firearms for one, and could even do some time.
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Not paying a state tax if owed is a state offense not a federal offense .

 

[LBrown59]

</font><font color="blue" class="small">( It has been said here on TBN many times before, that out of state purchases do NOT "save the sales tax." Each state requires the individual tax payer to report such purchases and remit the "use tax" due on your annual state return.<br><br>Granted, a LOT of people do not pay these taxes. The state of NY actually sends agents with cameras to the malls just over the border in PA. They photograph the license plates of those visiting the PA malls, and send them notices that they should pay any taxes due.<br><br><font color="blue">"This is a federal offense, meaning that, if charged, you would lose your right to own firearms for one, and could even do some time." </font color=blue><br><br>However, being simply "charged" for such an offense would not result in anything. CONVICTION would be required before any penalty.<br><br>Also, the IRS has "threshold" amounts for criminal prosecution. I am not certain of the precise numbers (ask your CPA). But it is something like a total of $10,000 in taxes due and not paid for three consecutive years, before the IRS criminal division gets involved. Less than that amount, and it is considered a "mistake" or "taxpayer error." <br><br>Buyers need to be more aware (and "beware" of) this issue. It is YOUR responsibility, not the dealer. So, if you owe, and are not entitled to the "farm" exemptions, you probably ought to just pay up. It is likely that as tax revenues shrivel up, all states will become more aggressive in going after taxes like this.<br><br>What this will do to "quotes" for out of state purchases remains to be seen. )</font>
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*"This is a federal offense, meaning that, if charged, you would lose your right to own firearms for one, and could even do some time."
***Also, the IRS has "threshold" amounts for criminal prosecution. I am not certain of the precise numbers (ask your CPA). But it is something like a total of $10,000 in taxes due and not paid for three consecutive years, before the IRS criminal division gets involved. Less than that amount, and it is considered a "mistake" or "taxpayer error."
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*No it's not.
**Failure to pay a state tax is not a federal issue, Therefore this nothing to do with the IRS.

 

[LBrown59]

</font><font color="blue" class="small">( What is it with people trying to “get out of paying” taxes. Now, don’t get me wrong, I hate paying them too, but I just suck it up and pay like most American’s. After all, there is supposed to be some good to come from taxes (although I wonder sometimes).<br><br>Here in Missouri, you can fill out some state form to exempt farm equipment from sales tax that’s used in the production of saleable crops. My dealer brought this to my attention, and since the law is written so broadly, he said I could qualify. Just sell a few tomatoes to your neighbor, he said. Even people with small market gardens qualify.<br><br>Well, I just didn’t feel right doing that, so I paid the taxes. Now I’m under no pressure to produce a bumper crop of tomatoes [image]/w3tcompact/icons/laugh.gif[/image]<br><br>Jim<br> )</font>1*Here in Missouri, you can fill out some state form to exempt farm equipment from sales tax that's used in the production of salable crops.
2*I’m under no pressure to produce a bumper crop of tomatoes
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1*Ohio has a better way. It's based on land owned rather than production of crops.
2*Neithe is a Buckeye and he don't have to pay sales tax.

 

[LBrown59]

</font><font color="blue" class="small">( I went 'round and 'round with New Holland over that when I bought my manuals. They ever so graciously have decided to collect the sales tax even though it's not required. I bet the reason they do that is that they get to float your money for 3 to 6 months. Hey, it's the American way! Screw your customer coming and going. That's probably one for the ethics thread. )</font>

How do you know they hain't just stickin the tax money in their own pocket and not forwarding it to the other state?

 

[DUMBDOG]

Did we mean Hong Kong? /forums/images/graemlins/blush.gif