Taxes on tractors

[Indian Territory]

I realize the answers to this question will vary by state, but I’m curious what kind of yearly property taxes people budget to pay on their tractors. I’m in the tractor buying process, and don’t want to get into a bad situation because of variables I failed to anticipate.

 

[jyoutz]

None in my state.

 

[Woodstock Walt]

No tractor taxes here either, other than Maine's 5.5% sales tax rate.

Just so happens that our friendly neighboring state does not have sales tax. If our dealer delivered the tractor to Maine I'd being paying 5.5% of $42k to the state, even though I was "potentially" buying the tractor out of state regardless. However, if I brought a trailer and trucked it myself, who knows where I'm towing it to, and mum's the word on Maine's BS sales tax. Well worth the $300 of fuel.

Live Free or Die

 

[bdhsfz6]

Unless you have a farm or business, there is a 6% sales tax on tractors here in PA.

 

[Hay Dude]

Unless you have a farm or business, there is a 6% sales tax on tractors here in PA.

Businesses still pay 6% in PA.
Farmers are excused from paying 6%.

 

[Thomas]

No tractor tax here.

 

[Torvy]

Ag exemption on sales tax in TX. No personal property tax. Looks like OK is one of only a few that still do that...

States Moving Away From Taxes on Tangible Personal Property | Tax Foundation

Download Background Paper No. 63 Appendix: Tangible Personal Property Tax Statutory Citation GuideDownload Background Paper No. 63: States Moving Away From Taxes on Tangible Personal Property Key Findings While governments in every U.S. state impose a tax on real property (land and structures)...

taxfoundation.org

 

[cat fever]

No property tax in Utah or Idaho on tractors. If it's for Ag use then no sales tax.

 

[bigtiller]

No property tax on personal property like tractors in Iowa but we did have a luxury tax on dogs and boats many decades ago. I think the amount was $10 each.

 

[LS Tractor Owner]

There are no "yearly" property tax on tractors unless the particular state requires a title and license plate. This will vary and is only 1 or 2 states.

There is an initial "sales tax" buying new. Some states have reciprocal tax, meaning if you buy from out of state (adjoining state) they may collect the sales tax for your state or the state you are buying it in..... You can choose which state is lower and use that amount. BUT... it is a one time charge.

Other states do not 'reciprocate' sales tax. But the catch to not paying the sales tax is if it is only shipped out of state by a licensed carrier with a bill of lading.

The best way to find the CORRECT answer to your questions is to contact YOUR states Dept. Of Revenue and Taxation.

You will get a ton of responses here, all mostly good.... they just may not apply to your situation.

 

[joeyd]

No property tax on tractors here like Cat Fever said but build a barn to park it in and they get ya!

 

[Jstpssng]

My town sent a form, asking me what I had for unregistered personal property so that they could tax me on it. That was almost 20 years ago, and they've never sent me another. As somebody mentioned above, we pay 5.5% sales tax on every purchase. Every year when I fill out my state tax return there is a place to declare tax on smaller purchases where I hadn't already paid it; or I am given the choice of an income percentage on smaller items. I take the standard deduction, but also declare things like my winch and grapple.
Rather necessary as I'll write those off against wood sold; but also, I once got behind on my taxes and know all too well how they rat you when that happens.

 

[mo1]

There are no "yearly" property tax on tractors unless the particular state requires a title and license plate. This will vary and is only 1 or 2 states.

Not true. In Missouri, tractors are not titled or licensed but they are unfortunately subject to an annual property tax. So are all pieces of farm equipment as well as livestock, in addition to the property itself and any buildings on it. Nothing ag-related is subject to sales tax, though, although you do have to file an exemption with the state for this.

 

[4570Man]

I don’t think any state has a reoccurring tax on tractors. Most states charge sales tax when you buy it.

 

[oosik]

I pay sales tax at the time of purchase. Otherwise - no other tax on the tractor.

 

[mo1]

I don’t think any state has a reoccurring tax on tractors. Most states charge sales tax when you buy it.

Not true, Missouri does have an annual personal property tax assessment on all farm assets, which includes tractors, implements, buildings, land, livestock, and even grain.

Missouri Tax Commission FAQs

 

[oosik]

One year Alaska tried a personal property tax. Only lasted one year. Too many calls - how much are soiled underwear worth - ripped jeans - holes in your mucklucks - holes in your socks - etc, etc. It became a political farce and resulted in one legislator being recalled, back to private life.

 

[cathy liebchen]

In Georgia only if you use the equipment in a commercial business

 

[Herness]

Agree. No taxes if you buy tractor for personal use only.
If you still want to hear it from someone else you can contact turbotax customer service by this link and i am sure they will be happy to confirm the same. They are always friendly and helpful from my experience.

 

[ultrarunner]

Not true. In Missouri, tractors are not titled or licensed but they are unfortunately subject to an annual property tax. So are all pieces of farm equipment as well as livestock, in addition to the property itself and any buildings on it. Nothing ag-related is subject to sales tax, though, although you do have to file an exemption with the state for this.

Now I see why it's the Show Me state...