Buying Advice Dealers advertising no out of state tax...

[Pard]

Hey, I知 in the market for a new tractor. LS xu6158c to be exact. Anyone have any advise on dealers advertising no sales tax for out of state residents? Seems to be a big savings but the down side of not buying local? Also how would I pay the taxes in my home state (Louisiana) if so? In my 46 years on this planet this will be my first new set of wheels bought from
A dealership. Nerve racking to say the least.
Thx. In advance.

 

[MoCoHogHunter]

I’m not sure how tax exemptions work in Louisiana, but I don’t have an ag exemption over here in Texas so when I bought my XR4040HC in 2016 I bought it in Arkansas to save the tax. There was no tax to pay when I got it back to Houston.

I handle the routine maintenance and thankfully haven’t needed any repairs yet, warranty or otherwise so local dealer concern hasn’t been an issue. Closest dealer to me is just about 65 miles anyway...

Chip at Artrac is great, if you end up looking up that way.

 

[Pard]

I知 not sure how tax exemptions work in Louisiana, but I don稚 have an ag exemption over here in Texas so when I bought my XR4040HC in 2016 I bought it in Arkansas to save the tax. There was no tax to pay when I got it back to Houston.


I handle the routine maintenance and thankfully haven稚 needed any repairs yet, warranty or otherwise so local dealer concern hasn稚 been an issue. Closest dealer to me is just about 65 miles anyway...

Chip at Artrac is great, if you end up looking up that way.

Thx. Hog hunter.
So, warranty work must be from dealership you bought it from? Im new at more than just this forum stuff. lol I知 on the gulf so a trip to central Arkansas would be a nice little haul to have work of any sort done that I couldn稚 take care of myself. I値l look up Artrac and take a look. I知

 

[MoCoHogHunter]

Sorry if I misled you on the warranty work - any LS dealer will do it. I called the somewhat local dealer before I bought mine and they said it was no problem, but I’d just check with your local dealer to confirm.

 

[Citydude]

I bought a tractor in Wyoming and had it delivered to our property in South Dakota. The Wyoming dealer did not tax it because it crossed state lines. With that, South Dakota has a use tax on machinery if bought from another state. Check your state taxation laws. I found South Dakotas use tax requirements under their farm tax statutes.

 

[Pard]

Oh, ok. I understand now. I値l surely check with them. Thanks!

 

[Hozzie]

Technically, if you are picking it up, or they are delivering in your state, one state should be collecting the sales tax on it unless you have a farm exemption. It's about where the transaction takes place. I am surprised the revenue office of the state hasn't paid them a visit or will in the future. Be prepared to have to pay it if that happens. Not saying it may not be worth the risk, but it could come back to you so just be aware of it.

 

[Pard]

I値l look up those tax laws. I just wasn稚 sure where to start. Until now. Thx!

 

[Tractor Seabee]

Hey, I知 in the market for a new tractor. LS xu6158c to be exact. Anyone have any advise on dealers advertising no sales tax for out of state residents? Seems to be a big savings but the down side of not buying local? Also how would I pay the taxes in my home state (Louisiana) if so? In my 46 years on this planet this will be my first new set of wheels bought from
A dealership. Nerve racking to say the least.
Thx. In advance.

Paying taxes in your home state on purchases in another state is usually an individual honesty, integrity, and ethics issue. Unless something is required to be licensed there is not a positive enforcement means your state has unless someone blows the whistle on you. WA has been known to operate stings and pay informers. Every state with sales and excise taxes is now working on how to enforce their tax laws due to the high volume of internet sales by sellers not having a business license in their state. Big retailers like Amazon have business licenses in every state to avoid any legal repercussions. Some states, like here in WA, even have an annual personal property tax all owners of such have an obligation to pay. Our tractors fall into that category. Again, enforcement is difficult unless you have a business. Everybody is on there honor. My accountant told me if he has knowledge of a violation his state CPA license is in jeopardy on either out of state purchases or the PP tax situation. We have the over the state line tax situation here in WA as we have no income tax and but a hefty sales tax where OR is the opposite. Sales tax evasion is a big thing here especially in areas close to the border. If you want to buy a vehicle in OR and have a WA drivers license/address you are stuck.

 

[Citydude]

Technically, if you are picking it up, or they are delivering in your state, one state should be collecting the sales tax on it unless you have a farm exemption. It's about where the transaction takes place. I am surprised the revenue office of the state hasn't paid them a visit or will in the future. Be prepared to have to pay it if that happens. Not saying it may not be worth the risk, but it could come back to you so just be aware of it.

Sounds like I need to ask the Wyoming dealer about that. I figured that since I've bought out of state vehicles that were not taxed until registered in my sate the same goes with machinery.