To pay...or not to pay

[EAEValid]

Howdy;

I have been lurking for about a year and just recently joined the forum. This site is the greatest and is helping me out in researching what tractor I need.

Background: I have lived all of my life in “urban land.” 2 years ago decided to run away and live out in the country. On 10 acres in Central Florida, I am living large and loving life. I have a lot of work to do and every task is a new and exciting adventure. The soil is mostly sandy and the rest of the land needs to be cleared. It was cleared once by the previous owner and it is now gone back to nature.

Problem: I just recently started to sit on tractors, MF 1533 and NH TC35A, and have hit a quandary. One dealer is not charging me tax and the other is. The worst part of it is my wife and I like the dealer who is not charging us the tax. His reasoning is that it’s for agricultural. I check the county appraisal assessment of my property and it does not have an agriculture certificate. My county requires one to get the agricultural exemption. If the solution is to get him to charge us tax (WOW!!! Like begging someone to get hit me with a 2x4 with rusty nails and smile) I have no problem. I just don’t want this decision to haunt me for the rest of my life.

I have search high and low and have not found any info to help on this site. If any or all can steer me in the right direction, I would be most grateful.

tank in advance…

eddie…

PS: When I sat on the first tractor, I got a flashback to when I was a kid playing with my first Tonka. It was cool then and now.

 

[Soundguy]

Virtually ALL of the local tractor dealers around here ( also central florida ) will only charge you the reduced 2.4% ( i think ) ag tax rate if you have land that is zoned A-1.. even if you don't have an ag exemption on your property tax assesment.. and even if you don't file a form F on your income taxes ( loss or profit from a farm ).

Some of the dealers just ask real quick.. 'Ya got horses or cows?' if you say yes.. they use the ag rate.. some ask if you have A-1 land. I've never had one ask if I had the ag tax exemption...

The local auction yard is the only dealer that doesn't offer the ag tax rate... that I've found so far..

I'm not tax lawyer .. but IMHO.. if you have a-1 land.. and are buying a tractor to care for it.. it seems reasonable that you should get the ag tax rate. Also.. most 'large' parcels of land are still a-1.. unless they have been re-zoned inthe past.

soundguy

 

[shane]

There is a BIG discussion on this site somewhere about this tax/notax topic. Maybe someone that knows where it is will give you the link. I'm not a thinking where at the moment. Too much lemonade.

 

[EAEValid]

Soundguy;

Thanks for the info. I will look into if my property is zoned agricultural.

Shane;

I saw the thread and viewed it as avoiding paying taxes. I was asking what everyones take is from the point of view of the dealer not charging taxes. Will have to look at that thread closer.

tanks again...

eddie....

 

[CDsdad]

I ran into the same situation. I have planted pines for future harvest. Dealer says that's ag tax. I couldn't find a straight answer to suit my time frame so I paid the normal tax. It was worth it to me not to have to worry in the future. Definitely find out if you're not rushed. Ag tax would've saved me almost a grand, but I already hate dealing with state tax commision and did what seemed safe. I'll get them somewhere else.

 

[Soundguy]

Hmm.. florida must be different than other states. We don't have a tax commission to deal with for items that are not road registered. In other words.. if I buy a tractor from a dealer.. it is up to him to charge me the correct tax.. regular or agg.. then report it to the state on his dr-15.. or whatever form he files... No real interaction from the state to the end user.. unless of course.. you somehow buy something and pay no tax, and they find out.. etc.

To the original poster. Just look up your tax bill.. your zoning should be listed. some counties can be looke dup online.. for instance.. marion county.. all you have to do is hit marion county website.. then choose propertry apraiser.. then search the tax roll either by name or parcel id #...

Remember.. by paying the ag tax ( assuming you have eligible property).. you are not 'skirting' or 'avoiding' the tax.. you are paying your legal fair share.. according to those tax provisions.. etc. I'm sure the state would much rather get that 2.4% from all the farmers.. vs everyone trying to 'skate' on tax and try to buy out of state and hide it.. etc.


Soundguy

I ran into the same situation. I have planted pines for future harvest. Dealer says that's ag tax. I couldn't find a straight answer to suit my time frame so I paid the normal tax. It was worth it to me not to have to worry in the future. Definitely find out if you're not rushed. Ag tax would've saved me almost a grand, but I already hate dealing with state tax commision and did what seemed safe. I'll get them somewhere else.

 

[AndyMA]

In Conn it's cut and dry. You need to get a certain form approved by the State Department of Revenue and give a copy to your dealer before he can give you an exemption. The form to qualify requires $2500 in either income or expenses the prior year. To get your land taxed as farm in my town requires $15,000 in income the prior year.

Andy

 

[gotrocks]

[SIZE=-1]I just found this on Alabama's web site[/SIZE][SIZE=-1][/SIZE] [SIZE=-1]Agriculture Rate - 1-1/2%[/SIZE] [SIZE=-1]Equipment and its replacement parts used in connection with the production of agricultural products, livestock, or poultry on farms is subject to tax at the rate of 1-1/2%.[/SIZE] [SIZE=-1]Machine Rate - 1-1/2%[/SIZE] [SIZE=-1]Machines and the parts for machines used in mining, quarrying, compounding, processing and manufacturing tangible personal property are taxed at the rate of 1-1/2%.[/SIZE]

[SIZE=-1]General Rate - 4%[/SIZE]​

[SIZE=-1]All other taxable tangible personal property is taxed at the rate of 4% of the purchase price.[/SIZE]

 

[AndyMA]

In Conn it's cut and dry. You need to get a certain form approved by the State Department of Revenue and give a copy to your dealer before he can give you an exemption. The form to qualify requires $2500 in either income or expenses the prior year. To get your land taxed as farm in my town requires $15,000 in income the prior year.

Andy

I just noted I should have said one more thing. In Conn the Ag Sales Tax Rate is ZERO. No tax on products used in the production of Ag products.

Andy

 

[firemanpat2910]

Florida dealers around here just ask what zoneing is not if you have an exempt. I cant give you legal advise but, I would go for the ag exempt if it were me........ If you can sleep at night and not have visions of ATF (ag-tractor-farm) agents swarming around the barn waiting for you to get on your tractor and following you around in there silent john deere/case nh stealth helicopters and patroling the perimiter on their kubota/massey tanks, you should be fine