Hi, I'm going to buy a B7500 Kubota tractor and don't want have to pay a very high sales tax. I have no property to meet state requirements of 5 acres or more. I will have to pay sales tax which is almost 10% in Tennessee.
As far as I know when you buy a tractor out of state there is no taxes, unless your home state has an agrement with the state your buying in. I would check with an out of state dealer, they will give you the scoop on the sales tax. I have an address in GA and I claim GA as my home state since my main home is there. In GA we have a 7% sales tax on tractors and everything else unless you have an AG exemption, then its a monster 0% /forums/images/graemlins/grin.gif
If I purchase in AL and claim GA the sales tax is also 0% on a tractor regardless of your AG status. Even if my home address was in AL the tax on AG equipment is 1.5%. But thats a straight 1.5%. No AG claim stuff according to my dealer. A car purchased out side AL is around 2.5%. Low? I think so.
So either way I would pay 0% with the AG exemption or I would pay 0% in AL if I had the AG or not because I live in another state. If I lived in AL I could buy in GA, but the 1.5% is probably not worth the hauling.
<font color="green"> So anyway, with all that worthless info out of the way, check and see if the nearest state has a tax aggrement with tenn. If your an AG business... a farm and paying taxes on that farm tenn could have a AG exemption. If not find the closest out of state dealer that is tax free and see if its worth the distance. At 10% it probably is </font> /forums/images/graemlins/smirk.gif