Taxes on Used Tractors

[digicamnut]

I'm looking at a used 2005 L2800 gear driven with FEL , Box Blade, Cutter, middle buster and 16' lowboy for @ 12,000
I gotta pay taxes anywhere on the deal? Buying from an individual.

 

[TalonDancer]

I'm looking at a used 2005 L2800 gear driven with FEL , Box Blade, Cutter, middle buster and 16' lowboy for @ 12,000
I gotta pay taxes anywhere on the deal? Buying from an individual.

AFAIK in Texas you have to pay sales tax on new or used tractors/implements unless you have an AG exemption (or equivalent Wildlife exemption) on your property (land). This would be very obvious on your property taxes in Texas.

Talon Dancer

 

[LBrown59]

AFAIK in Texas you have to pay sales tax on new or used tractors/implements unless you have an AG exemption (or equivalent Wildlife exemption) on your property (land). This would be very obvious on your property taxes in Texas.

Talon Dancer

digicamnut
is talking about a private sale between individuals in which case sales tax would not apply.

 

[TalonDancer]

digicamnut
is talking about a private sale between individuals in which case sales tax would not apply.

You may be correct in the case of used tractors. But Texas does require sales tax to be paid on used cars even when purchased from private individuals.

Talon Dancer

 

[LBrown59]

You may be correct in the case of used tractors. But Texas does require sales tax to be paid on used cars even when purchased from private individuals.
Talon Dancer

You are correct about used cars .
== Here in Ohio it works the same way on cars because they are required to be titled as motor vehicles.
Tractors don't require titling so aren't considered motor vehicles thus no sales tax on tractor transactions between private parties.
I suspect it works much the same in Texas/U mite want to check it out just out of curiosity.

 

[smfcpacfp]

You guys are forgetting the use tax. Every state that has a sales tax has a use tax. You are supposed to report the private sales like the one you are contemplating on this form. I took the liberty to find the hotlink for the instructions for that form in Texas.

http://www.window.state.tx.us/taxinfo/taxforms/01-156.pdf

Now how many taxpayers actually do this? Can they be counted on the fingers of one hand?

 

[wushaw]

The trailer will have to be tagged in the new owners name so he will be paying taxes on the trailer for sure.

 

[LBrown59]

The trailer will have to be tagged in the new owners name so he will be paying taxes on the trailer for sure.

Back in 95 I bought a used home built tilt bed 6X8 utility trailer for $350 in W.Va.
There was no title or sales tax involved.

 

[KeithInSpace]

Just curious: How do you get tags on a trailer without a Title? In VA that is where the sales tax is applied (when the title is transferred), but if memory serves, the value has to be over $1,000 or something before Big Brother bothers with picking your pocket.

 

[digicamnut]

Just curious: How do you get tags on a trailer without a Title? In VA that is where the sales tax is applied (when the title is transferred), but if memory serves, the value has to be over $1,000 or something before Big Brother bothers with picking your pocket.

Your right about the trailor but are tractors titled? If so the you would be required to pay taxes when the transfer is made.

Thanks for all the help guys.