Sales Tax on Out of State Tractor Purchases

[Rick James]

So my local dealer network just isn’t willing to get aggressive on pricing. Based on this, I reached out to one of the dealers that is well known on this sight that will ship out of state. They have given me pricing that is pretty compelling, but I’m not sure how sales tax works on this sort of thing if it’s not collected at the dealer. I live in Illinois, this dealer doesn’t have any presence in this state, and they would be delivering to me.

Anyone else do this? How did you handle sales tax?

 

[flyidaho]

Depends, in my own case, I bought out of state but even bought in my state I would have skated on the tax, as I'm a "farmer", legally, and it's farm equipment. Worse comes to worse, you'll have to pay it down the road, not like you'll go to prison or anything! I could sleep at night not worrying about it.

 

[bluelou212]

So my local dealer network just isn’t willing to get aggressive on pricing. Based on this, I reached out to one of the dealers that is well known on this sight that will ship out of state. They have given me pricing that is pretty compelling, but I’m not sure how sales tax works on this sort of thing if it’s not collected at the dealer. I live in Illinois, this dealer doesn’t have any presence in this state, and they would be delivering to me.

Anyone else do this? How did you handle sales tax?

In my case, living in NY, I bought my tractor in PA and paid PA sales tax. I think I'm personally responsible for paying the amount of NY sales tax that is in excess of the PA tax.

Sent from my SM-G930V using Tapatalk

 

[Charlie5320]

So my local dealer network just isn’t willing to get aggressive on pricing. Based on this, I reached out to one of the dealers that is well known on this sight that will ship out of state. They have given me pricing that is pretty compelling, but I’m not sure how sales tax works on this sort of thing if it’s not collected at the dealer. I live in Illinois, this dealer doesn’t have any presence in this state, and they would be delivering to me.

Anyone else do this? How did you handle sales tax?

Check it out carefully, Illinois DOES want their sales tax. I don't know how they could find out about the purchase of a tractor though. I think my late wife said there is a place on the form they ask about out of state and on line sales. I bought an older Motor home earlier this year and they soaked me for a grand on the sales tax, I wasn't planning on.

 

[hodge]

I bought mine out of state, and paid for it prior to picking it up. Because I didn't purchase it- pay for it- in state, I didn't have to pay sales tax.

 

[Kurtee]

In Minnesota we are required to pay sales on items we buy in state. If we buy it out out of state it is then known as use tax which is the same rate as sales tax. This is kind of on your honor and not all gets reported. If something is sold out of state no sales needs to be collected. (it must leave the state and not be used at all in state) Supposed to be reported in your home state. Illinois most likely has something similar. Check with the dealer you are buying from to see about not paying tax in that state so as not to double pay tax when you report it in Illinois.

 

[Ramos]

I work for a dealership in Oregon. We do not have a Sales Tax, yet. However, Washington state does. If we sell a piece of equipment to a Washington resident, it goes like this: If we deliver it, we collect the Sales Tax and send it in. If the customer picks it up on our (Oregon) lot, they are responsible and I would guess many do nothing in regards to paying it. I have no idea if your laws are the same as the ones we are subject to. If they are the same, your dealer would be responsible for collecting it and submitting it since you want it delivered.

As already mentioned, if you are a legit farmer, in the legal sense, Sales Tax would not be applicable to this purchase.

 

[deathtoblackberries]

I work for a dealership in Oregon. We do not have a Sales Tax, yet. However, Washington state does. If we sell a piece of equipment to a Washington resident, it goes like this: If we deliver it, we collect the Sales Tax and send it in. If the customer picks it up on our (Oregon) lot, they are responsible and I would guess many do nothing in regards to paying it. I have no idea if your laws are the same as the ones we are subject to. If they are the same, your dealer would be responsible for collecting it and submitting it since you want it delivered.

As already mentioned, if you are a legit farmer, in the legal sense, Sales Tax would not be applicable to this purchase.

Bad idea, Washington state camps out near tractor dealerships in Oregon and films people with Washington state license plates leaving with their new tractor, films them crossing the border into Washington, then sends them a bill for the sales tax plus a hefty penalty and interest if they don't pay the sales tax. I spoke with a retired sheriff who got tagged, he had paid cash for the tractor, hauled it home himself. He consulted a lawyer and the lawyer told him to hurry up and pay before the state decided to make an example out of him. They also will camp out at Best Buy, Home Depot, its crazy.

 

[Ramos]

Bad idea, Washington state camps out near tractor dealerships in Oregon and films people with Washington state license plates leaving with their new tractor, films them crossing the border into Washington, then sends them a bill for the sales tax plus a hefty penalty and interest if they don't pay the sales tax. I spoke with a retired sheriff who got tagged, he had paid cash for the tractor, hauled it home himself. He consulted a lawyer and the lawyer told him to hurry up and pay before the state decided to make an example out of him. They also will camp out at Best Buy, Home Depot, its crazy.

I don't doubt it, on your' side of the Cascades. On the East Side, our population density is so low, it would be a waste of time. We MIGHT have a total of three people/year haul their own across the line that would actually owe this tax.

 

[baronetm]

Brother in Law bought a tractor out of state twelve years ago, with a trade in and balance paid in cash. The dealer told him it was his responsibility to pay the use tax, they even made out the paperwork for him. He took it home thought all was well. He found out later Vermont had the legal authority to check the businesses sales records for border business, knowing the large number of tractor in the state with no use taxes paid. Three years after the purchase he got a bill from the state, ended up paying an accountant, the original tax, interest and penalties, more than double the original sales tax on his tractor purchase, less the trade in. Then he was audited every other year for 6 years, he's still Pixxed.

 

[MadMax31]

Barlows dropped off my BX23S in May. No sales tax as he delivered it.

 

[deathtoblackberries]

Brother in Law bought a tractor out of state twelve years ago, with a trade in and balance paid in cash. The dealer told him it was his responsibility to pay the use tax, they even made out the paperwork for him. He took it home thought all was well. He found out later Vermont had the legal authority to check the businesses sales records for border business, knowing the large number of tractor in the state with no use taxes paid. Three years after the purchase he got a bill from the state, ended up paying an accountant, the original tax, interest and penalties, more than double the original sales tax on his tractor purchase, less the trade in. Then he was audited every other year for 6 years, he's still Pixxed.

NY audited a number of east coast states, manly NC and SC where people were buying a lot of furniture cheap and not paying the sales tax. I know someone who got the bill years later, the tax, penalties, and interest they slapped him silly.

 

[nickelplated5s]

Way back when I bought a plane in CO and took it back to CA. Eventually I got a tax bill from CA. Later on I bought a different plane, I left it in OR for 91 days and was exempt. Planes and autos have registration, tractors don't but I would ask your CPA. There happens to be a CostCo near the Portland airport. I kid you not, seen 250K pieces of jewelry there. I asked and they do sell, to out of state residents. The moral is it depends on where you buy it and what state you take it to.

 

[MachAF]

NY audited a number of east coast states, manly NC and SC where people were buying a lot of furniture cheap and not paying the sales tax. I know someone who got the bill years later, the tax, penalties, and interest they slapped him silly.

How can the New York Department of Revenue audit a Company in a different state? Doesn't pass the smell test. I'm guessing there is a lot lot more to the story....

 

[MachAF]

They also will camp out at Best Buy, Home Depot, its crazy.

You really think Washington has the resources to do that? For $100 in tax revenue?

I lived in Southwest Washington for decades. I've never, ever seen or heard of that happening to ANYONE.

Washington doesn't even attempt to go after individuals. They don't even go after online sales, which amount to far greater dollar amount.

 

[deathtoblackberries]

How can the New York Department of Revenue audit a Company in a different state? Doesn't pass the smell test. I'm guessing there is a lot lot more to the story....

It happened bank on it I know the guy who got nailed personally.

 

[deathtoblackberries]

You really think Washington has the resources to do that? For $100 in tax revenue?

I lived in Southwest Washington for decades. I've never, ever seen or heard of that happening to ANYONE.

Washington doesn't even attempt to go after individuals. They don't even go after online sales, which amount to far greater dollar amount.

They sure do. They photographed the guy who bought the Kubota tractor leaving the dealer and driving across the bridge with it into WA. There's a mattress company in Oregon that had been selling and delivering to WA without collecting/paying the sales taxes, WA beat the living crap out of that company so bad that it scared the rest of the businesses on Oregon out of delivery anything to WA. You can still go over there and buy a recliner from a furniture store but you have to haul it home yourself or hire a 3rd party delivery company. After the legal beat down the mattress company endured, I believe it put them out of business, its a whole new world.

 

[deathtoblackberries]

On the other hand WA has no state income tax which means we get to deduct the sales tax we pay off our federal tax return which takes the sting out of paying the sales tax.

 

[RCW]

NY audited a number of east coast states, manly NC and SC where people were buying a lot of furniture cheap and not paying the sales tax. I know someone who got the bill years later, the tax, penalties, and interest they slapped him silly.

I believe that, entirely!!

Living in NYS, if the delivery location is in NYS for big items, New York taxes apply.

If I were to buy a truck in PA, it would be deemed delivered to NYS. Same applied when I bought my Harley in another NYS county. My home county received the revenue at it's rate, because that was it's delivery location.

Now, several sellers provide "kits" with tractors and trailers to carry the tractor interstate by the new owner himself, then the delivery location might be considered the pick-up point of the dealership in NC or SC..(?)...maybe that was NYS angle?

How can the New York Department of Revenue audit a Company in a different state? Doesn't pass the smell test. I'm guessing there is a lot lot more to the story....

Don't doubt it a bit. They need money. Some folks call it New Yorkistan on purpose. Cost/benefit seems to have no bearing on State operation.

It happened bank on it I know the guy who got nailed personally.

That's why New Yorkistan is a shitty place to live, work, or do business with.......and yet our state government think they're great...

Whew...rant over. Now back to your regularly scheduled program.....

 

[Cathy Liebchen]

we used the Georgia GATE card and were exempt from sales tax at our local dealer. Generally we don't mind paying sales taxes when due, the government needs the money and we like to pay our fair share. Don't think much of welshers