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Tractor Talk Discussion Forum

sales tax between states

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terry

01-22-2004 19:04:19




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Is there a general rule when buying a tractor from a dealer in another state. If I buy, do I pay that state the sales tax, or does this rule vary depending on which state I would be dealing with.




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Ed

01-23-2004 09:21:00




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
Sales tax is collected by the dealor in any state he/she has a presence.

Assuming you are not exempt from sales tax

If a dealor had a showroom in MD and NY and you purchased the item in MD for delivery in NY, the dealor would have to charge you NY sales tax and submitt it to NY state. His NY showroom means that his business has a NY presence requiring him to collect sales tax for any item delivered to NY even if purchased in the MD showroom.

If the dealor was only in MD and shipped to NY the dealor is not required to collect sales tax - the responsibility shifts to the purchaser - you would have to send the sales tax to NY.

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bill in MA

01-23-2004 07:54:45




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
It's really a free-for-all. In supporting various computer based invoicing systems over the years there are probably 1000 combinations of shipto,. ship from, application of the 4 components of a sales tax and a ton of exemptions.



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Van in AR

01-23-2004 07:07:48




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
I dont know about crossing state lines but in Arkansas farm use equipment is tax exempt. Just sign on the reciept that the equipment is for your farm. Van



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Garry

01-23-2004 06:20:58




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
Terry, generally you will pay tax in the state you pick the tractor up in unless they deliver it to you. You may also have to pay use tax in your state in either case. If it is delivered to you you should pay use tax to your state. If you pick it up at the seller's place you will owe use tax in your state but may receive credit for tax paid in the seller's state, but this credit may not apply to cars, boats, cycles, etc that are required to be registered. If you have a resale number then you buy wholesale and owe no tax at time of purchase. Each state have diffirent rules however. If you buy from an individual then the casual sales tax may apply, which in my state generally only applies to autos.

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Rauville

01-22-2004 21:22:44




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
Here in the great state of South Dakota, sales tax is collected at the point of delivery. If you would buy a tractor directly off a dealer's lot, you would pay the state sales tax. If you had the dealer deliver that tractor out of state to you, you avoid the local tax, but would be liable for any tax owed your own state.
We even collect tax on machinery at farm auction sales. Some of these old tractors have had tax collected on themselves several times! But, this is the price we pay for NO state income tax.

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Les...HAH!!

01-23-2004 04:26:05




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 Re: Re: sales tax between states in reply to Rauville, 01-22-2004 21:22:44  
We have neither an income tax nor a sales tax in NH and seem to get along just fine.



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thurlow

01-24-2004 14:46:49




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 Re: Re: Re: sales tax between states in reply to Les...HAH!!, 01-23-2004 04:26:05  
Am I the only one that has a perception of the different states (admittedly based on ignorance or misconceptions); i.e., if God were gonna give the USA an enema, where would he give it???? Wouldn't be in NH and hope it wouldn't be in TN. Have always admired NH and the good people thereof; LIVE FREE OR DIE????? ?



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Rauville...Tax Question?

01-23-2004 05:40:38




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 Re: Re: Re: sales tax between states in reply to Les...HAH!!, 01-23-2004 04:26:05  
Les;
Just curious; how does your state tax other areas? I just received our 2004 real estate tax bill yesterday, and it figures out to about $5 / acre per year on farm land. To license my 2002 3/4 ton pickup is about $65 per year. Our state sales tax is 4% (3% on vehicles and machinery).
Thanks from SD



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Flurette Farm

01-22-2004 20:12:50




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
Terry, you will have to pay the tax for the state you are a resident of when buying in another state. I have purchased farm equipment in 15 different states and Canada and never paid any tax on any of it as Missouri exempts farm equipment from sales tax. That includes equipment you purchase for your farm from any farm supply stores or the farmers associations. You will have to abide by the laws of your state....Good luck.

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Flurette Farm

01-23-2004 06:56:12




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 Re: Re: sales tax between states in reply to Flurette Farm, 01-22-2004 20:12:50  
Brownfield community south of Richland between the Gasconade & Osage Fork, right off 32 Highway. Where be you?..... .....



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old

01-22-2004 20:27:04




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 Re: Re: sales tax between states in reply to Flurette Farm, 01-22-2004 20:12:50  
Flurette, What part of Missouri are you in ?????



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Harrison

01-22-2004 19:36:36




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
Most of the time:If you purchase an item from a buisiness and must pick up local,you pay sales tax for the state(OR location cause sales tax is ussually higher in the city than county for a buisiness.The exception is for cars, boats, campers,and other "titled" property,in which case you fill out a sales tax exemtion form and pay local when you register the vehicle.For your tractor I would say they would want a tax exempt form or the tax,If they take the form and you pay cash it is imperative you remember to go to the court house and pay your sales tax because they ussually cannot track out of state cash transactions on non registered items.I have to work hard at remembering,I'm getting old and sometimes I forget things so just make sure you remember to pay locally.

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Unimog

01-22-2004 19:23:49




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 Re: sales tax between states in reply to terry, 01-22-2004 19:04:19  
In many states farm machinery is tax exempt with
a state tax number. Some states honor the exemption certificates from neighboring states.
Also you might avoid sales tax by telling the
dealer you are going to register or tag in your
home state. You may have to fill out a simple
form to give you sales and use tax exemption for
a motor vehicle purchased by a nonresident.



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