Taxes

jim_wilson · Jan 9, 2005

I did buy my tractor from a tax free state (New Hampshire) and I darn well didn't go around offering to pay MA state sales tax on it when I got it. The ability to deduct 5% off the price of the tractor by buying it in NH was one of the factors in my buying decision. The NH dealer made it even easier by delivering the tractor and writing it off as a "demo" or some such thing that much take care of it on their books in case MA ever comes looking for money.
Where NH is a no sales tax state and MA is a 5% state there is a lot of business that NH gets because of people wanting to save on sales tax. As a practical reality there is nothing that MA can do to a NH business that sells into MA as long as they don't have a business presence in MA. A few years back there was one of the larger furniture retailers that got into trouble with MA because people were buying in NH - the co. was delivering to MA and not charging sales tax because the sale had happened in NH. Because the co. in question had stores in MA and NH the MA govt. had some recourse against the co. and the practice stopped. As for the dealer I bought my tractor from they only have stores in NH so if MA tried to get sales tax out of them they would be facing an uphill battle. It would easier for MA to come after me and if the taxman showed up at my door wondering if I paid tax on the tractor I would tell him some bs story about finding the tractor by the side of the road or some such thing and tell him to prove that I owed tax on it.
As far as the "screw the govt" comment I am in complete agreement. In the end the ability to withhold money from the govt is a form of voting. I already pay a pretty hefty amount of $$ to the govt and I really don't see why they need any more. Withholding money from govt. forces them to make hard decisions about spending the way the rest of us have to. Taxes are essentially paid under threat of force because when you don't you go to jail or worse. There is plenty of unfairness in the tax codes that tilts to the govts' favor. If the govt loses a little bit of tax revenue here and there because people buy out of state so be it - maybe eventually it will force them to put their financial house(s) in order.

MikePA · Jan 9, 2005

Screw the government, let them come after it if they want it. I wonder how many of the posters actually practice what they preach. 
1. Many, if not all, do.
2. Civil and polite disagreement is fine. This is neither.

755inNY · Jan 9, 2005

Screw the government, let them come after it if they want it 

MadReferee,

That's certainly a common position but one needs to evaluate the risk. One of the worse things in life is to have the tax man after you whether State or Federal. You are GUILTY until you prove your innocence. The tax man is sometimes wrong but YOU will spend a lot of $$$ to prove it. The tax man doesn't necessarily stop with the first issue he uncovers either.

So, the odds of you getting caught for not paying the required sales or use tax may be low but the financial risks could be high. Is it worth it? That's a personal choice on what is at stake.

Jeff

teddydo · Jan 9, 2005

I live in Mississippi and bought my Tractor in tennessee. The Tax for farm use is 1%. I plan on deapriacating this 4330 that I bought last summer on my tax returns. Now I don't know if I would have got caught or not but I paid the tax, boy did I hate to. I know a guy who works in the Court House and does land apraisals that bought one the same time I did and he said he did NOT pay the taxes. He should know something that I don't. But I have know him to be audited before so maybe he sticks out his neck. I just choose not to mess with the Tax collectors.......luck to all what ever you choose to do. Teddy

MadReferee · Jan 9, 2005

( 1. Many, if not all, do. )

From the looks of some of the posts in this thread so far, I think you are incorrect.

( 2. Civil and polite disagreement is fine. This is neither. )

I beg your pardon. I was stating my opinion and wondering out loud about whether people actual practice what they preach. It was civil and quite polite considering what some others have said.

The fact that you may not like it is your privilege.

MadReferee · Jan 9, 2005

( That's certainly a common position but one needs to evaluate the risk. ...
That's a personal choice on what is at stake.)

You're right. It's a personal choice. I have evaluated the risk (if any) and made my decision.

Everyone should evaluate and make their own decision.

Volnavy · Jan 10, 2005

Some items that may be of interest.

1. I've recently received a quote from an out of state company and they did not put any tax on it.

2. I got a quote from another who used the "no tax" as a marketing argument. He actually brought it up.

As for the government. I would be more inclined to be fair with them if they were always fair with me. I just bought some land and when it came time to pay my taxes, they were messed up. The land was appraised for more than it was worth, more than had ever been paid for it, and more than the neighboring farmland. This was partially due to the acreage being misstated. The state said I could not correct it, the correction period was over (the last owner did not catch it) and that I would have to correct it next year. Would they under appraise it next year, heck no. They are wrong, they know they are wrong, but I have to pay. Whey you get treated like that, it makes you want to treat them back poorly too.

Of course two wrongs don't make a right.....

MikePA · Jan 10, 2005

(Not a specific response to Wes)
Except for sociopaths, everyone, from my kids to adults, always have a good reason when they don't follow the rules/laws. As we get older, the reasons are more convoluted, have more 'facts' associated with them, sound more plausible, but it's all the same...It's called rationalization. /forums/images/graemlins/crazy.gif

DUMBDOG · Jan 10, 2005

Have you looked at the warranty/service issues from purchasing out of state. One of the reasons that they are using this as a marketing tool is that you will not be bringing the tractor back for warranty work.

As far as two wrongs do make a right, you are dealing with two separate government entities, one the county, who must follow the law as far as periods to contest the assessment and the state who collects the sales tax.

Earlier I had asked if you worked for a state sponsored college, if this is so, this would make you part of the same assessment error as you would then work for the government to follow your line of logic. We know that you did not over assess this property on purpose, but errors happen.

Dollars are dollars when it comes to a purchase and based upon this thread you know what you are getting into, that it is not legal to purchase a tractor out of state and not remit the tax to your own state.

But no matter where you purchase your tractor or pay sales tax or not, we hope that you are happy with your purchase.

Bob_Skurka · Jan 10, 2005

Just as MikePA stated his reponse was not directed to anyone in particular, mine is likewise direct to everyone (or nobody). And just as Mike made a valid point about "rationalization" let me also add that in addition to that, not paying taxes is simply TAX EVASION.