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Old 07-08-2007, 10:08 PM   #1
toby
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Buying out of state best price and to avoid sales tax?

First post:

Has anyone had any experience with buying CUTs out of state and having the unit shipped to get better price and avoid sales tax?

Today with the internet it is not uncommon to buy cars long distance even though the sales tax is usually still collectible as they are t itled.

It's not the case with CUT's, and with a $30K machine it might save 1500-2000 or more.

Is it worth it and to those that have done it has it led to problems?

Do the service depts treat you any differently? I bought a 755 Deere years ago from a non local dealer and it was 15 years before it was back to a dealer. The new models may not be as trouble free.

Thanks.



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Old 07-08-2007, 10:11 PM   #2
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Why the *** for B U Y?

Why does the forum add asterisks for the word B U Y and
T I T L E D?



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Old 07-09-2007, 08:47 AM   #3
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Funny you believe ***ing out of state is cheaper... If you finance the machine, automatically the mfg sends to your state a copy of the UCC filing., So trying to hide from state taxes is only a short thing until they catch up with you.. Some states and maybe PA does or does not,, eliminates sales tax if you are a legitimate farm.. Check into this...
The other thing, living in New England area and we pay some of the highest prices in the country for equipment. I bought my tractor from a PA dealer, when, shipped to my home, was many, many thousands cheaper than ***ing here... Even including the 6% CT sales tax.. I *** all oil and filters from the same dealer and recommend this same dealer to anyone in my neighborhood that is looking for a tractor or implement..

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Old 07-09-2007, 10:02 AM   #4
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Thanks. In reviewing this you are absolutely correct PA has does have a use tax and requires buyers to pay it on all out of state transactions on the internet, mail order, etc. .

When you bought your tractor from PA did your local dealer handle any warranty or service OK?

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Old 07-09-2007, 11:07 PM   #5
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Re: Why the *** for B U Y?

Quote:
Originally posted by toby
Why does the forum add asterisks for the word B U Y and
T I T L E D?
Please bear with us Toby. I have been trying to block out a flood of spa mmers using the word censor. I am still fine tuning it. Hopefully they will go elsewhere. Thanks for your patience and understanding.
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Old 07-10-2007, 10:37 AM   #6
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toby, unfortunately you may fine that your state (and a lot more) subscribe to a national database that collects information about sales of items such as automobiles, atv's, tractors, etc. Most dealers report each sale to this database along with your name and address information. This makes it REAL easy for each state department of revenue to find you and send you a bill for the sales or use tax as well as a fine for not reporting the purchase and paying the tax. Too much of big brother in my opinion but that is how it is. At least how it works here in TN.

If you file a schedule F on your income taxes, you may be able to file for a sales tax refund but you will have to report the purchase, pay the sales tax, and do the paperwork. I did this when I bought our ATV's.

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Old 07-10-2007, 01:07 PM   #7
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Buying

Chief,
Does the "database" also include the purchases of used equipment? I agree with the big brother comment by the way.
TPS

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Old 07-10-2007, 04:38 PM   #8
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TPS, as far as I know, if you buy it from a dealer new or used, the sale gets reported. A friend who purchased a Honda ATV found this out the hard way when he recieved a notice in the mail that he owed about $700 in sales tax and a fine. I purchased my ATV's from the same dealer he purchased his from and that dealer sales manager told me that even though I purchase the ATV is MS and they did not collect sales tax since I was not a resident of MS, they were required to report the sale to a this database and the TN Dept. of Revenue would be apprised. Best to ask before you buy and find out what exactly is the case. I am sure this varies from state to state. Better safe than sorry.

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Old 07-10-2007, 08:05 PM   #9
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Database

Hey chief,
Thanks for the reply. I bought a piece of equipment used from out of state and did not think anything about it. I'll check with the dealer and see what he says since reading this.
TPS

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Old 07-10-2007, 09:46 PM   #10
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Bare in mind this does not apply to buying equipment from private parties as they do not report retail sales.

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Old 07-12-2007, 09:17 AM   #11
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If you have a legitimate bussiness account lke we do, they waive the sales tax on any purchase that we make for the benefit of the farm. Its kind of like buying groceries for the farm.

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Old 09-24-2014, 06:49 PM   #12
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If I buy a trencher from out of Texas (They do not have Texas stores) do I have to pay Sales tax?
Please reply,
fsp40sp@yahoo.com

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Old 09-24-2014, 06:52 PM   #13
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If I buy a trencher from out of Texas (The seller does not have any stores in Texas),
do I have sales tax liability.
fsp40sp@yahoo.com

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Old 09-28-2014, 09:20 AM   #14
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Short answer, Yes. You have to report the purchase on your state taxes. Not sure if that applies if your state doesn't have a state sales tax.



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