What state has the lowest state sale tax?

Chief · Jul 1, 2003

John, have you looked at purchasing a tractor out of state? (not Kentucky) I believe that the dealer is not required to charge you sales tax if you not a resident of that state and the dealer has no dealerships in TN. I bought my John Deere 4410 from Hutson Ag which has businesses in TN and KY. They did not charge me sales tax because my tractor was for agricultural use and not residential use. I also have a tobacco allotment and a USDA farm #. You may want to check into this issue if the tractor is for agricultural use. Where abouts in TN are you? I may be able to put you in touch with a real good green paint dealer. /forums/images/graemlins/wink.gif I may be wrong on this, but as I remember this is what they told me at the dealer.

cowboydoc · Jul 1, 2003

Oregon and Montana both have zero sales tax.

DavidJ · Jul 4, 2003

Alabama has 1.5% on Ag and I don't know of any state that they have a tax agreement with.

Gatorboy · Jul 4, 2003

Delaware has 0% sales tax

OkeeDon · Jul 4, 2003

Re: What state has the lowest sale tax?

( The reason Tennessee sale tax is so high is there is no income tax here and the votes of Tennessee will not vote for an income tax here. We have the hightest state sale tax in the U.S. right now. )

Florida has no state income tax and a base sales tax rate of 6%, with local options of .5% or 1% more added by voters of a particular county, usually for a specific purpose and a limited time. But then, we have all you lovely tourists coming down and contributing to our sales tax revenues -- thanks!

There are reduced or eliminated sales taxes for legitimate ag users on many items, but it is relatively tough to get an ag number -- I think it's based on farm income on your IRS returns.

Kelvin · Jul 4, 2003

Re: What state has the lowest sale tax?

I think that the Tennessee STATE sales tax is around 7.75-8.25% (I'm not sure of the exact figure). Each county and/or city then adds local sales tax to that tax amount. In my East TN county, the total sales tax is 8.75%. Still pretty high, but I'll take it considering that there is no income tax, no school tax. There are city and county property taxes, but they seem reasonable relative to other states.

Automobiles & trucks are taxed upon initial purchase (ouch!) but then the tag renewals are under $25.00 each year regardless of vehicle value, unless you have a speciality plate of some sort.

Kelvin

SnowRidge · Jul 4, 2003

If you happen to be close to the VA border and care to do business up there, you can escape the tax if someone else takes delivery for you, as long as you yourself are not a VA resident. /forums/images/graemlins/grin.gif

Of course, you are still legally required to pay the TN sales tax if you are not using the machine for farming. /forums/images/graemlins/frown.gif

SnowRidge

SnowRidge · Jul 4, 2003

Re: What state has the lowest sale tax?

( Florida has no state income tax and a base sales tax rate of 6%, with local options of .5% or 1% more added by voters of a particular county, usually for a specific purpose and a limited time. But then, we have all you lovely tourists coming down and contributing to our sales tax revenues -- thanks! )

True, but Florida also has relatively high property taxes. My little piece of boondocks Florida has a tax rate three times that of my larger chunk of Tennessee. As a result, my Florida property taxes are almost twice what I pay in Tennessee.

Of course, both of them pale in comparison to what some people in the Northeast pay. /forums/images/graemlins/shocked.gif

SnowRidge

ChuckinNH · Jul 5, 2003

There is no sales tax, and no income tax in New Hampshire, but that is a long drive too!! /forums/images/graemlins/shocked.gif

Libertine · Jul 5, 2003

Re: What state has the lowest sale tax?

JohnMiller3:

By the way, I'm curious... what state did you purchase your last new car from...?

Interesting Freudian slip. Just curious, was it intentional?

JEH