Tax Mistake

[tdenny]

I can't imagine ANY states like the tax exemption from internet sales. In fact I doubt that any of the states like any sort of exemption from any taxes period. Especially here in the great state of Washington.

Although it may be illegal to avoid paying the taxes on a tractor purchased out of state I think it is a darn fine way to make up for the fact that we are taxed well beyond any reasonable amount already. Just my 2 cents.

 

[cowboydoc]

I couldn't agree with you more TD. They just keep spending more and more and coming up with more and more ways to tax us. This was NOT what the founding fathers had in mind!!

 

[tdenny]

Amen Richard.

Out here the voting public surprisingly (very liberal usually) keeps letting our government know that enough is enough but they for some reason just aren't getting the message. The voters have passed initiatives limiting the amount of property taxes, excise taxes, etc. and the governement fought them in the state supreme court and they were ruled unconstitutional. Nothing like being a representative of the people.

 

[Egon]

Seems like a lot of folks figure they are having to pay way too much tax. Is it time for another TEA PARTY?
Egon

 

[Phred]

Eugene,

Your right in principle they are not connected.

However, I think you will find that many states will likely use federal guidelines to determine if you are a real farm or if you are a hobby farm.

For example if you signed the ag exception form in Ark when you bought a tractor but did not show a schedule F on your state and federal forms then Ark would likely question the ag exception.

Fred

 

[Phred]

Chris,

I don't think so.

At first this statment would seem to indicate that it is:
"The term “agricultural” means operations engaged in for the production of food,
fiber, timber, sod, and nurseryman products."

However, if you look at the details under the sales tax law:
".......
4. An implement may not be treated as tax exempt unless it is used "directly" in the
agricultural production of food or fiber as a business. The term "directly" limits the
exemption to:
a. only those implements used in the actual agricultural production of food or
fiber to be sold in processed form or otherwise at retail, or
b. machinery and equipment used in the agricultural production of farm products
to be fed to livestock or poultry which is to be sold ultimately in processed
form at retail.
5. Implements which are not exempt include but are not limited to the following:
a. Containers or storage facilities.
b. Implements used in the production or severance of timber, or any motor
vehicle of a type subject to registration for use on the highway, or airplanes, or
hand tools........."

You can find more than you want to read at
<A target="_blank" HREF=http://www.state.ar.us/dfa/taxes/salestax/ar-regs05-2001.pdf>http://www.state.ar.us/dfa/taxes/salestax/ar-regs05-2001.pdf</A>
page 66 is the key area for this discussion.

But again don't take my word for it, talk to a CPA.

Fred

 

[cstocks]

Thanks for the info, Phred and especially for the link. I have looked for information about this topic on the internet before but have had little luck.

 

[TerryinMD]

Oh heck... let's spice up the conversation!! /w3tcompact/icons/eyes.gif

I'd take a look at when that law was written. 25 or 6 to 4, my guess it was put into effect when Clinton was the Gubner of Arkansas..... /w3tcompact/icons/laugh.gif/w3tcompact/icons/laugh.gif/w3tcompact/icons/laugh.gif

Just look at the language and the vagueness..... ack!!!

Terry

 

[Phred]

Terry,

Clinton is not from Arkansas he is from Harlem!!!!/w3tcompact/icons/laugh.gif

Thank god./w3tcompact/icons/smile.gif

Fred

 

[Hydraman]

Shoulda botta tractor in Montana!!! They have NO state sales tax; and they like it thatta way!!! I like it ,too; 'cause only being 50 miles away, it makes it real nice to go there and use their roads and services and whatever else all free of charge is very considerate of them!! Also gives me some leverage when negotiating with dealers here; I.E. " Why should I buy from you' when I can buy in Montana for xxx no. of dollars and no tax; but you want me to pay you this same amt. plus the 5% for the guvner!! I don't think so!!"Gotta go, bye