Taxes

kensfarm · Jan 11, 2005

"No to mention our forefathers did this boldly and in public.
"

Yea.. but they had a look out.. one by land.. two by sea! /forums/images/graemlins/grin.gif

LBrown59 · Jan 16, 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..... )
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1*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.
2* 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.
WesHines
=================
1*You got off easy at least they didn't give your land away to somebody else and charge you the inflated tax for 25 years like they did to my parents.
Mom and dad never knew about this - they both died first.
They were literally taxed too death.
The tax people at my court house are some of the most inept incompetent officials I ever ran across.
2*But they can darn sure screw up and over charge you any time.

Harleymsn · Jan 18, 2005

JFDLAW, NY state has put that sales tax line on the state income tax forms, but since they do not have a use tax provided, it is unenforcable. This has been upheld in the federal courts re: sales tax on the Native American Reservations. Of course my tax situation on my tractor is a bit complex. I live in NY, bought my tractor in NC and transported it from NC to TN. Since I live in NY, and the tractor never entered NY, they would have no claim anyhow. Because I bought this on the internet from a dealer in NC, and removed it from the state, no tax there. Since I am a NY resident I am not subject to Tennessee taxes, unless I purchase the items there.
Now, did I just throw a monkey wrench into this discussion?

jfdlaw · Jan 18, 2005

There are people who argue the US income tax is unconstitutional and unenforceable. Some of them are in jail. Do what you want with taxes. I don't care. I quit handling criminal matters a long time ago. But make the decision knowing the facts and the consequences of your actions.

I buy locally (My Kubota dealer treats me great), pay sales tax and sleep soundly at night.

DUMBDOG · Jan 18, 2005

I do believe that you are a little bit misinformed as being subject to TN tax as not being a resident there, their information lists as having the item shipped to a address there not being a resident. This little tidbit came from their web site.


If Tennessee sales tax is added to the price of your purchase, you DO NOT owe use tax. However, if you buy or ship merchandise to your Tennessee address and sales tax is not added to the price, then you are responsible for paying the use tax directly to the Department of Revenue. For example, sales tax is not always added to purchases through:
Internet
Telephone
Mail order catalogs, etc.

Henro · Jan 18, 2005

Since I live in NY, and the tractor never entered NY, they would have no claim anyhow. 

Is this a fact? Or would/could the state have a "use tax" claim against you if the state found out the details of the transaction?

For example, say I want to purchase a gift and send it to a friend in a different state. I live in PA, mail order something from NY and have sent to Junkman in MA. Does the purchase obligate me to pay Use Tax?

I this case I purchased the item and Junkman finds it in his mail box shortly afterwards. Junkman gets it just the same as if I had purchased it in PA and sent it from here. The net result is the same. Junkman is happy in either case.

Is this a loophole in the Use Tax law, or not? I realize these laws could vary in wording state to state.

I only ask because I don't know but sure am curious.

By the way, if there is even a remote possibility that I might be held responsible for use tax, Junkman certainly isn't getting a birthday gift from me this year! /forums/images/graemlins/grin.gif

Then what if I buy a second item from the same vendor in NY and have it shipped across PA to AndyM in Ohio? Am I required to pay Use Tax on that one, since it entered PA, even for an instant?

Keep checking that main box AndyM...you never know... /forums/images/graemlins/grin.gif

Harleymsn · Jan 18, 2005

Dumbdog, I am not having it shipped to tennessee, but in fact transporting it along with a trailer load of my personal belongings from NY.
And Henro, as I stated earlier, NY does not have a USE tax as has been described like in Tennessee. Also NY sales would not be due until the item entered the state.

jfdlaw · Jan 18, 2005

Henro, New York is a little different than other states. We do not have a true "use" tax. We have a sales tax that you are supposed to pay if you buy a product in New York or if take delivery of a product in NY, or if you buy something out of state and immediately bring it back into the state. The key is the tax is due when you buy stuff and it is here, or delivered here or you immediately bring it back here. Purchase and presence in NY.

No NEW YORK tax due in Harleymsn's example of buying in NC and transporting to TN, although I think he is confused on other issues and owes tax in NC if he picked it up there, as he implied that he did, and in TN as Dumbdog (great name) suggests. Plus, if the dealer in NC allowed him to pick it up there without collecting the tax the dealer is playing with fire.

If Harley uses the tractor in TN for an extended period of time and then decides to move it to NY, no tax is due. NY charges tax at the time of purchase. Of course they would want proof he paid the proper tax (to the appropriate state) at the time of purchase and that it was in another state for an appropriate purpose, not just to avoid paying the NY tax.

Example using cars:
If you have a 2nd home in Florida and buy a car and register it in Florida, you pay sales tax in Florida and not NY (even it you are a NY resident Harley). Then you decide you are sick of Florida and move the car to NY. There is no sales or use tax when you register it in NY as long as you paid the proper tax when you bought it in Florida. The key is it was there for a legitimate purpose, not just to avoid NY sales tax.

HOWEVER, if you buy a car while you are on vacation in Florida, get some temporary tags (paper tags the dealer can issue until your regular plates come in), spend a week in the keys, drive it home and register it for the first time in NY, they are going to charge Sales Tax. If you paid the dealer in Florida NY will only charge you the difference between the tax the Florida Dealer collected and the amount due for NY Sales Tax.

Henro, your question is a good one and I don't know the answer. Is a tax due if I buy a product from an out of state vendor and ship it to an out of state recipient as a gift. (as I do every year to my father in law in SC) I suspect NY would try to tax it, thinking you bought it over your computer in state and arranged for shipment to your guest, but that is just a guess. I'm not going to lose any sleep over that. I'll fill in the estimated sales tax amount on my NY return.

Henro · Jan 19, 2005

And Henro, as I stated earlier, NY does not have a USE tax as has been described like in Tennessee. Also NY sales would not be due until the item entered the state. 

Harleymsn,

Maybe NY does now. I stumbled on the following while looking around trying to answer the question I asked above, about Junkman's birthday present:



What's New In NYS?

New York State and Use Tax Reported on the Tax Return!

Here is a recap of NY Use Tax, which we discussed extensively in our Update Seminar.

Our State Legislature has New York joining 18 other states in collecting sales and use tax due when taxpayers file their personal income tax returns. A direct line entry has been added to the 2003 tax return to report what is owed and six pages of instructions can be found in the income tax instruction booklet.

Briefly – taxpayers owe state and local sales or use tax if they make purchases through the Internet, by catalog or from TV shopping and did not pay NYS sales tax to the seller. Sales and use tax is also due on purchases you make when you are outside of NY and bring into NY for use. If the taxpayer paid sales tax to another jurisdiction, an adjustment is made for that amount. There are several choices for calculation of the amount due: actual calculation, chart provided by NY instructions or "zero". Using the chart, if the federal adjusted gross income is between $30,000 and $50,000, chart calculates $26 as the tax due. Between $50,000 and $75,000, the amount due is $34. That is reasonable. Moreover, remember, there is always that "zero" if the taxpayer does not owe anything. For more information, visit the NYS Department of Taxation and Finance web site at www.tax.state.ny.us. 

Quote taken from this site...

So maybe is push came to shove, you would be stuck paying one state or the other...

I'm still not sure about something purchased out of state and sent as a gift to someone in a third state... /forums/images/graemlins/confused.gif

DUMBDOG · Jan 19, 2005

I agree on the confusion and playing with fire.

I could not find anything in NC sales tax law to except the tractor for pick up to use in another state. The excemption form lists instructions regarding home state law if the use was to be out of state.

As far as Henro's generous gifts, the tax would be due in the purchasers state as the item would be purchased for use there, as a gift, even if it was sent elsewhere. Of course we can see extensive court battles between the states in determining who can collect the tax on such substantial items. /forums/images/graemlins/grin.gif