When I completed by state tax return this year, there was a question that I had never seen before. It went something like "purchases over $100.00 out of state that sales tax wasn't paid on". I didn't think much of it that Saturday, but for some reason it was bugging me the next day. By Monday morning I had looked it up on line and began the inquiry process. There is a form in VA that you are asked to complete and it applies the sales tax for your purchase and you just send in the check and the completed 1/2 page form. It then occurred to me that I had bought a couple of tractors from out of state that didn't have sales tax at the time of purchase. I called the information desk at the tax department and they assured me that any purchases over $100.00 that didn't have sales tax paid on them either in the state of origin or here, needed to be paid. I hung up, filled out the form, wrote the check and mailed it. I didn't write the tax code but I live here and that is what applies here. So, I gave Ceasar his due.
Avoiding Tax on New Tractor??
- Thread starter Curtis861
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When I completed by state tax return this year, there was a question that I had never seen before. It went something like "purchases over $100.00 out of state that sales tax wasn't paid on". I didn't think much of it that Saturday, but for some reason it was bugging me the next day. By Monday morning I had looked it up on line and began the inquiry process. There is a form in VA that you are asked to complete and it applies the sales tax for your purchase and you just send in the check and the completed 1/2 page form. It then occurred to me that I had bought a couple of tractors from out of state that didn't have sales tax at the time of purchase. I called the information desk at the tax department and they assured me that any purchases over $100.00 that didn't have sales tax paid on them either in the state of origin or here, needed to be paid. I hung up, filled out the form, wrote the check and mailed it. I didn't write the tax code but I live here and that is what applies here. So, I gave Ceasar his due.
coasterez
Banned
The laws on this will vary from state to state. So, any generalizatin here could mislead someone. And I'm not saying a word about any sales taxes I paid. - /forums/images/graemlins/tongue.gif
coasterez
Banned
The laws on this will vary from state to state. So, any generalizatin here could mislead someone. And I'm not saying a word about any sales taxes I paid. - /forums/images/graemlins/tongue.gif
beenthere
Super Star Member
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- Southern Wisconsin, USA
- Tractor
- JD_4x2_Gator, JD_4300, JD_425, JD_455 AWS, added JD_455, JD_110, JD_X485(sold)
That will be happening more and more, as the states already realize how much money they are losing from online and out-of-state purchases. When you have to answer that question on the tax form and then sign it saying it is accurate, the cheese gets a bit binding on the conscience. /forums/images/graemlins/wink.gif
Friend of mine who purchased a lot of goods online and through catalogs was contacted by the State, and asked about the purchases. She paid a penalty and the back state taxes. Now she adds the tax to her online and out-of-state purchases on a regular basis, to stay out of trouble.
Friend of mine who purchased a lot of goods online and through catalogs was contacted by the State, and asked about the purchases. She paid a penalty and the back state taxes. Now she adds the tax to her online and out-of-state purchases on a regular basis, to stay out of trouble.
beenthere
Super Star Member
- Joined
- Aug 16, 2001
- Messages
- 18,630
- Location
- Southern Wisconsin, USA
- Tractor
- JD_4x2_Gator, JD_4300, JD_425, JD_455 AWS, added JD_455, JD_110, JD_X485(sold)
That will be happening more and more, as the states already realize how much money they are losing from online and out-of-state purchases. When you have to answer that question on the tax form and then sign it saying it is accurate, the cheese gets a bit binding on the conscience. /forums/images/graemlins/wink.gif
Friend of mine who purchased a lot of goods online and through catalogs was contacted by the State, and asked about the purchases. She paid a penalty and the back state taxes. Now she adds the tax to her online and out-of-state purchases on a regular basis, to stay out of trouble.
Friend of mine who purchased a lot of goods online and through catalogs was contacted by the State, and asked about the purchases. She paid a penalty and the back state taxes. Now she adds the tax to her online and out-of-state purchases on a regular basis, to stay out of trouble.
CarlGlas
Gold Member
Bob, I am not aware of any state or federal statute that requires a person to report purchases where the seller has not collected a required tax. But, I can most certainly assure you that in the state of Texas a seller who, in the normal course of business is required to collect a sales tax on taxable items will get into trouble for not collecting the tax for or at least for not paying the tax to, the state comptroller.
Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.
Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.
CarlGlas
Gold Member
Bob, I am not aware of any state or federal statute that requires a person to report purchases where the seller has not collected a required tax. But, I can most certainly assure you that in the state of Texas a seller who, in the normal course of business is required to collect a sales tax on taxable items will get into trouble for not collecting the tax for or at least for not paying the tax to, the state comptroller.
Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.
Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.
BillyP
Veteran Member
Take the time to ask a CPA. Don't rely on what you read here. You're going to get all kinds of answers and you won't know which are right or wrong.
BillyP
Veteran Member
Take the time to ask a CPA. Don't rely on what you read here. You're going to get all kinds of answers and you won't know which are right or wrong.
Bob_Skurka
Super Member
- Joined
- Jul 1, 2003
- Messages
- 7,615
Written by BillyP: <font color="green"> Take the time to ask a CPA. Don't rely on what you read here. </font>
ABSOLUTELY THE BEST ANSWER SO FAR!
Written by CarlGlas: <font color="red">Bob, I am not aware of any state or federal statute that requires a person to report purchases where the seller has not collected a required tax. </font>
There would be no Federal statute on this, it is a 'states rights' issue. However, as someone who has testified under oath, I can assure you that there are many states that have this requirement as part of their tax code, in fact MOST states require this and failure to answer correctly constitutes tax fraud.
I can also assure you with absolute certainty that you do not have to "be aware" of a statute to have it enforced against you.
Written by CarlGlas: <font color="red">But, I can most certainly assure you that in the state of Texas a seller who, in the normal course of business is required to collect a sales tax on taxable items will get into trouble for not collecting the tax for or at least for not paying the tax to, the state comptroller. </font>
Yes, you are correct on this point. A seller required to collect tax, must collect it, or be in violation of the tax code. However, interstate sales do not require a seller, who is selling to an out of state consumer, to collect the in-state tax unless the seller has a physical presence inside the state to which the product is being shipped. If the seller meet the in state presence clause, then the tax rate that would be required to be collected would be the rate of the destination state, not the shipment state.
Written by CarlGlas: <font color="red">Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.</font>
It is true that it is legal to avoid the police. It is also legal to avoid taxes (see an accountant on how to do this, if it is possible, they will know). However it is also true that it is illegal to evade taxes, the reality is that evasion of taxes can, and very likely will, open up an individual for audits of their past 7 years of tax returns. Also, evasion yields a tax bill, a penalty, and back interest.
ABSOLUTELY THE BEST ANSWER SO FAR!
Written by CarlGlas: <font color="red">Bob, I am not aware of any state or federal statute that requires a person to report purchases where the seller has not collected a required tax. </font>
There would be no Federal statute on this, it is a 'states rights' issue. However, as someone who has testified under oath, I can assure you that there are many states that have this requirement as part of their tax code, in fact MOST states require this and failure to answer correctly constitutes tax fraud.
I can also assure you with absolute certainty that you do not have to "be aware" of a statute to have it enforced against you.
Written by CarlGlas: <font color="red">But, I can most certainly assure you that in the state of Texas a seller who, in the normal course of business is required to collect a sales tax on taxable items will get into trouble for not collecting the tax for or at least for not paying the tax to, the state comptroller. </font>
Yes, you are correct on this point. A seller required to collect tax, must collect it, or be in violation of the tax code. However, interstate sales do not require a seller, who is selling to an out of state consumer, to collect the in-state tax unless the seller has a physical presence inside the state to which the product is being shipped. If the seller meet the in state presence clause, then the tax rate that would be required to be collected would be the rate of the destination state, not the shipment state.
Written by CarlGlas: <font color="red">Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.</font>
It is true that it is legal to avoid the police. It is also legal to avoid taxes (see an accountant on how to do this, if it is possible, they will know). However it is also true that it is illegal to evade taxes, the reality is that evasion of taxes can, and very likely will, open up an individual for audits of their past 7 years of tax returns. Also, evasion yields a tax bill, a penalty, and back interest.
Bob_Skurka
Super Member
- Joined
- Jul 1, 2003
- Messages
- 7,615
Written by BillyP: <font color="green"> Take the time to ask a CPA. Don't rely on what you read here. </font>
ABSOLUTELY THE BEST ANSWER SO FAR!
Written by CarlGlas: <font color="red">Bob, I am not aware of any state or federal statute that requires a person to report purchases where the seller has not collected a required tax. </font>
There would be no Federal statute on this, it is a 'states rights' issue. However, as someone who has testified under oath, I can assure you that there are many states that have this requirement as part of their tax code, in fact MOST states require this and failure to answer correctly constitutes tax fraud.
I can also assure you with absolute certainty that you do not have to "be aware" of a statute to have it enforced against you.
Written by CarlGlas: <font color="red">But, I can most certainly assure you that in the state of Texas a seller who, in the normal course of business is required to collect a sales tax on taxable items will get into trouble for not collecting the tax for or at least for not paying the tax to, the state comptroller. </font>
Yes, you are correct on this point. A seller required to collect tax, must collect it, or be in violation of the tax code. However, interstate sales do not require a seller, who is selling to an out of state consumer, to collect the in-state tax unless the seller has a physical presence inside the state to which the product is being shipped. If the seller meet the in state presence clause, then the tax rate that would be required to be collected would be the rate of the destination state, not the shipment state.
Written by CarlGlas: <font color="red">Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.</font>
It is true that it is legal to avoid the police. It is also legal to avoid taxes (see an accountant on how to do this, if it is possible, they will know). However it is also true that it is illegal to evade taxes, the reality is that evasion of taxes can, and very likely will, open up an individual for audits of their past 7 years of tax returns. Also, evasion yields a tax bill, a penalty, and back interest.
ABSOLUTELY THE BEST ANSWER SO FAR!
Written by CarlGlas: <font color="red">Bob, I am not aware of any state or federal statute that requires a person to report purchases where the seller has not collected a required tax. </font>
There would be no Federal statute on this, it is a 'states rights' issue. However, as someone who has testified under oath, I can assure you that there are many states that have this requirement as part of their tax code, in fact MOST states require this and failure to answer correctly constitutes tax fraud.
I can also assure you with absolute certainty that you do not have to "be aware" of a statute to have it enforced against you.
Written by CarlGlas: <font color="red">But, I can most certainly assure you that in the state of Texas a seller who, in the normal course of business is required to collect a sales tax on taxable items will get into trouble for not collecting the tax for or at least for not paying the tax to, the state comptroller. </font>
Yes, you are correct on this point. A seller required to collect tax, must collect it, or be in violation of the tax code. However, interstate sales do not require a seller, who is selling to an out of state consumer, to collect the in-state tax unless the seller has a physical presence inside the state to which the product is being shipped. If the seller meet the in state presence clause, then the tax rate that would be required to be collected would be the rate of the destination state, not the shipment state.
Written by CarlGlas: <font color="red">Regardless of the distance between the meanings of avoid and evade, it is not illegal to avoid the police, but it is illegal to evade them.</font>
It is true that it is legal to avoid the police. It is also legal to avoid taxes (see an accountant on how to do this, if it is possible, they will know). However it is also true that it is illegal to evade taxes, the reality is that evasion of taxes can, and very likely will, open up an individual for audits of their past 7 years of tax returns. Also, evasion yields a tax bill, a penalty, and back interest.
Move to NH..no sales tax. Most people don't appreciate the fact that it's a Sales & Use tax. If the seller has no "physical presence" in TX..ie. no reps., no "physical sales calls"...as in a salesman travels into TX, no repair work done on their behalf by an in state company then they have no obligation no "nexus", to collect the tax. However, since the purchaser and "use" is in Texas the purchaser is required to file and pay the sales tax. Go to the TX Dept. of Revenue, there's probably a Sales & Use tax reporting form. One thing to remember; there is no statute of limitations on unreported tax liability......interest and penalties can be assessed.
By the way....this applies to any internet purchase, millions of people regularly break the law.....and avoid the tax.
By the way....this applies to any internet purchase, millions of people regularly break the law.....and avoid the tax.
Move to NH..no sales tax. Most people don't appreciate the fact that it's a Sales & Use tax. If the seller has no "physical presence" in TX..ie. no reps., no "physical sales calls"...as in a salesman travels into TX, no repair work done on their behalf by an in state company then they have no obligation no "nexus", to collect the tax. However, since the purchaser and "use" is in Texas the purchaser is required to file and pay the sales tax. Go to the TX Dept. of Revenue, there's probably a Sales & Use tax reporting form. One thing to remember; there is no statute of limitations on unreported tax liability......interest and penalties can be assessed.
By the way....this applies to any internet purchase, millions of people regularly break the law.....and avoid the tax.
By the way....this applies to any internet purchase, millions of people regularly break the law.....and avoid the tax.
Highbeam
Super Member
We all speed too. The difference is going five over the speed limit vs. 100 mph over the speed limit.
I paid my sales tax for my tractor. I order merchandise online tax free.
I paid my sales tax for my tractor. I order merchandise online tax free.
Highbeam
Super Member
We all speed too. The difference is going five over the speed limit vs. 100 mph over the speed limit.
I paid my sales tax for my tractor. I order merchandise online tax free.
I paid my sales tax for my tractor. I order merchandise online tax free.
CarlGlas
Gold Member
As it has been said, ignorance of the law is no excuse.
However, in an attempt to return to the initial subject.......
In Texas, meeting the minimum requirements for land and livestock, one may qualify for the agricultural land use tax exemption which reduces the property tax liability on that land while it is being used for such. And, if you purchase items which are used exclusively for the production of agricultural, i.e., crops and livestock, these items may be purchased without having to pay sales tax with a sales tax exemption form on file with the merchant.
At the present time Texas has no state income tax, but we do have Lotto. /forums/images/graemlins/smile.gif
However, in an attempt to return to the initial subject.......
In Texas, meeting the minimum requirements for land and livestock, one may qualify for the agricultural land use tax exemption which reduces the property tax liability on that land while it is being used for such. And, if you purchase items which are used exclusively for the production of agricultural, i.e., crops and livestock, these items may be purchased without having to pay sales tax with a sales tax exemption form on file with the merchant.
At the present time Texas has no state income tax, but we do have Lotto. /forums/images/graemlins/smile.gif
CarlGlas
Gold Member
As it has been said, ignorance of the law is no excuse.
However, in an attempt to return to the initial subject.......
In Texas, meeting the minimum requirements for land and livestock, one may qualify for the agricultural land use tax exemption which reduces the property tax liability on that land while it is being used for such. And, if you purchase items which are used exclusively for the production of agricultural, i.e., crops and livestock, these items may be purchased without having to pay sales tax with a sales tax exemption form on file with the merchant.
At the present time Texas has no state income tax, but we do have Lotto. /forums/images/graemlins/smile.gif
However, in an attempt to return to the initial subject.......
In Texas, meeting the minimum requirements for land and livestock, one may qualify for the agricultural land use tax exemption which reduces the property tax liability on that land while it is being used for such. And, if you purchase items which are used exclusively for the production of agricultural, i.e., crops and livestock, these items may be purchased without having to pay sales tax with a sales tax exemption form on file with the merchant.
At the present time Texas has no state income tax, but we do have Lotto. /forums/images/graemlins/smile.gif
huckie
Bronze Member
do i have this right? if i go to a state that does not have a state tax, finance a tractor though whoever, when i bring it back i will prodably have to pay even though i don't have to register it or anything? so if i buy a pair of shoes while their i still own my state!
huckie
Bronze Member
do i have this right? if i go to a state that does not have a state tax, finance a tractor though whoever, when i bring it back i will prodably have to pay even though i don't have to register it or anything? so if i buy a pair of shoes while their i still own my state!
