Price Check What kind of tax do tractors fall under?

[murphy1244]

just buy it in oregon without any tax and haul it to calif to use. you dont need to register it, so those bureaucrats will never know.

:thumbsup::thumbsup::thumbsup:

 

[davrow]

just buy it in oregon without any tax and haul it to calif to use. you dont need to register it, so those bureaucrats will never know.

Although lots of agreement on this, you really need to be careful.

Both Washington and California know a lot of people cross the border to buy stuff. And both have agreements with Oregon to have it reported.

I'm in California, but am not a farmer. I have no idea about farm exceptions. I do know that since they are not registered in California you do not pay tax at DMV. However, on your State Income Tax return you must declare the purchase and pay the tax. I'm chicken - I purchased in state and paid the tax. Penalties for tax evasion in California are severe.

 

[square1]

Ooh. ooh, I know this one! Pick me!
"Luxury tax"

 

[George2615]

If you buy a tractor out of state and bring it home on a trailer, no sales tax is paid out of state since you don't live there and don't have to register a tractor. There is a catch to that come year end tax time. When filling out NY State income tax forms one of the questions is, if you bought anything on line or out of state and didn't pay sales tax you must declare it and you are liable for paying the tax.
If you buy a tractor in NY you must prove you have farm exemption, the state has certain criteria that must be met to qualify, otherwise you will have to pay sales tax. I just bought a tractor and don't have a farm exemption so I had to pay sales tax. As mentioned each state may vary on paying tax or registering a tractor. I can drive it on rural roads with a SMT displayed on back and flashing lights. To be safe you should obtain separate insurance. Homeowners insurance only covers the tractor while on my own property.

 

[Blade Breaker]

Buy it haul it home and forget about it.

 

[7879fordman]

If you have a licensed farm, there is no tax on farm equipment in Ark. Most dealers don't even require you to prove it, just saying that you do is good enough. I suppose if you lie, it is on you and not them so they aren't worried if you get fined later.

Doesn't have to be licensed here either my farm isn't licensed . All my income is from it though .

Sent from my iPhone 5 using TractorByNet

 

[jtygoku]

First, determine whether your conscience is OK with ignoring the law. If it is, then decide how comfortable you are with taking the risk of getting caught. No judging here but a gazillion folks have ignored the law, didn't pay the the prescribed tax and lived happily ever after.
My observation is that while there may be a moderate risk in a small handful of states, most places (including my state) the risk is small to non-existent.

 

[Hiltz]

Evading taxes is certainly not worth the risk as it usually comes back to bite you .
A lot of shrimpers on the gulf coast (and I mean alot) who were affected by the BP spill a couple of years ago took a double whammy. BP told the shrimpers to simply bring in their W-2 forms from the year before and they would reimburse them the same amount in full that they claimed with the IRS. OOPs.....seems the shrimpers like to get paid in cash and keep the IRS out of their business. That's one of the reasons we saw the shrimpers really, really, mad when they were being interviewed on the news.
If you want to be sure ask the person who does your taxes. If he tells you that you have to pay taxes on it he might suggest a way to lower the tax or even not pay it at all legally. The operative word "legal"

 

[Threepoint]

Although lots of agreement on this, you really need to be careful.

Both Washington and California know a lot of people cross the border to buy stuff. And both have agreements with Oregon to have it reported.
[snip]
Penalties for tax evasion in California are severe.

+1 on this. California, like most states, has a use tax similar to its sales tax. Unless the buyer qualifies for a specific exemption (e.g, an ag exemption), the use tax on the out-of-state tractor purchase must be declared either on the state income tax return or on a special use tax reporting form. Since a tractor need not be registered, unlike a truck, trailer, some boats, etc., some folks think the risk of getting caught is negligible. State tax authorities are obviously on the lookout for this, especially for big-ticket items like machinery and heavy equipment. That's why they regularly request shipping manifest data from interstate freight companies who deliver into the state. The freight companies cooperate to stay on their good side. If you have a heavy box blade shipped to you by truck from an out-of-state vendor who does not collect sales tax, there is a high likelihood your state tax authorities will find out about it in a few months. If you've not declared and paid use tax, you may be assessed the tax, plus interest and penalties. In the case of a tractor or skid-steer purchase that you buy out of state and personally haul in yourself, don't assume you won't eventually be on the radar. It's not unusual for the revenue personnel in State A to contact equipment dealers across the line in neighboring States B and C for info on sales to buyers having addresses in State A. As with interstate freight carriers, those dealers often make deliveries to State A and may well cooperate with the requests.

So before you buy a tractor in Oregon, haul it home and forget about the tax issue, you might want to ask yourself if you feel lucky.

 

[Jim Nelson]

I too live in Calif.and if I lived in the northern part of the state I would buy all my equipment,parts,oil and anything else I could in Oregon and never say a word to Nanny Moonbeam and his band of perverts in Sacramento.If you don't use it in business and depreciate it on your taxes they will never know and they are too lazy to come looking for you.This is a big deal, money wise, to you and me but nothing in the grand scheme of things.As far as feeling guilty look at how they abuse we the people daily and just count it as just deserts.