Taxes

[Volnavy]

I am a first time poster and have found this forum very useful in my quest to buy my first tractor. This may be an odd question, but here it goes:

I have been shopping a little on ebay and noticed adds from companies. If I purchase a tractor using ebay across state lines it seems that I get out of taxes because it is an internet sale. With a price of 13-15 K, it seems like this is a huge advantage. Is my logic right or where am I going wrong? Has anyone done this?

Thanks,
Wes

 

[dliston]

If you are buying it as a business you are required to "self assess" the tax amount and send it to the state. Even as an individual, you are required to do so, however very few people do.

If you are audited by the state sales tax folks (a slim possibility), they could find it and you would have to pay as well as a penalty.

Doug /forums/images/graemlins/frown.gif

 

[shvl73]

Do a search on this site regarding taxes. I recall a thread about tax liability where the dealer was audited and the buyer was contacted about the taxes due.

 

[AndyMA]

Not only can the dealer get audited, remember many states have agreements re sales tax. also if you finance, when the UCC gets filled, you may get caught.

andy

 

[bugstruck]

From what I read up here no one really knows on the tax issue. I'd like to see if anyone knows if this has been tested in the courts on large equipment purchases. The Federal and State laws are rather substantially in conflict. Feds say no sales tax and State says sales, use, or road tax. This will get tested if it hasn't already and only then will we have a SOMEWHAT definitive answer, or precedent atleast. Even if the Fed regulations prevail over the States it still wouldn't stop a zealous state collector from testing your tenacity.

Till then it's opinion and conjecture. Now someone step in and tell me it's the LAW. Which law?? Who prevails?? /forums/images/graemlins/shocked.gif /forums/images/graemlins/blush.gif /forums/images/graemlins/smile.gif

 

[LBrown59]

There are a couple ways to not pay sales tax in my county .

1*Have a dealers license and a vendors license with a sales tax exempt number.
2*If your land is classified as farm or ag property,

 

[BillyP]

You're a college professor so why not present this question to a fellow professor of tax laws?

 

[KiotiJohn]

Read this thread and you'll get an idea of some of the ways you may be found out.
Anytime you buy from a company who has a presence in your state, even if the site is out of state, you're charged sales tax.
Buying on Ebay may be a way of avoiding this in many instances.
John
Tax thread

 

[rozett]

Here in Maine, you will be charged sales tax if you buy an item in state. If you buy it out of state, you are required to pay a "use tax" which is set at the same rate as the sales tax. The state income tax form actually has a line item for Use Tax. If you fail to volunteer the info on your purchases, and they discover it via an audit of an out-of-state business, then not only will you pay the tax plus a penalty but you can be found guilty of falsifying your tax return. The risk of getting caught may be small, but the consequence can be significant.

 

[KiotiJohn]

</font><font color="blue" class="small">( If you fail to volunteer the info on your purchases, and they discover it via an audit of an out-of-state business, then not only will you pay the tax plus a penalty but you can be found guilty of falsifying your tax return. The risk of getting caught may be small, but the consequence can be significant. )</font>
Pardon me if I'm ignorant of the facts, but since when can a state government audit an out of state business? John