Out of State Buying

[kurtfromct]

i hear a lot of guys talking about buying out of state becuase it is cheaper. what i am wondering about is the sales tax. since i live in connecticut, if i were to buy in say Pennsylvania or New Hampshire i would not have to pay any sales tax (correct)? i wouldn't even have to report anything in Connecticut? also, if i bought out of state, would i be able to go to a local dealer for work under warrenty? thanks a lot.

 

[C6rider]

Well, according to most state laws if you buy something substantial out of state you are supposed to report it to them and pay the tax. Like that happens a lot.

Taking it to a local dealer should be ok but don't expect priority service since you didn't give him the sale.

I also hate sales tax. I bought mine in Maine but had it delivered to my home in NH so no tax.

 

[bandit67]

If you pay cash, there's not much way to track things. If you finance the machine, then there's a paper trail, especially because the UCC is filed in your state. CT has a reputation for looking a bit harder to be sure they're getting their fair share of taxes. Keep in mind that if you try to avoid the tax and get caught, there are fines, late penalties and/or additional interest fees that you will get hit with. Bottom line is you will most likely not get away without paying tax if you finance the deal.

If the only savings is the sales tax if you can get away with not paying it, then it's probably not worth the risk or the hassle of buying out of state. If you can still save money by purchasing out of state, even after you fill out the form and send in the tax to your state, then buying out of state can be worth while.

 

[kurtfromct]

thanks guys, that was very helpful

 

[Tom_H]

CA sales tax averages around 8%, OR has no sales tax. WA has it but I don't know the amount. Some on here from CA & WA have bought in OR. Again, you need to pay cash. Kubota credit dept will notify your home state if they issue the credit.

In most states, supposedly, anything you buy in another state, by phone or by internet, you are supposed to get a special form and voluntarily fill out the amounts and send in the tax.

I have never met anyone who does that. Cars have to be registered if brought into a state, in many cases a big tractor too. CUTs & SCUTs are considered like any other personal property. Having to pay tax on it in one state when you buy it in another state is ludicrous.

 

[schmism]

also remember some states dont tax "farm stuff"

so when i bought out of state (used) the dealer asked me how big my "farm" was. I told him.

No sales tax. no issues.

 

[Ductape]

Our state heavily promotes the lack of sales tax ......... so much so, that Massachusetts has had to have a one-day-out-of-the-year sales tax amnesty day. Mass allows residents to make relatively large purchases one day out of the year (no cars, tractors,etc.) tax free in an attempt to "compete". Obviously your state will pinch you on anything you need to register, such as a car. Perhaps if you couldn't buy your tractor outright, you could pay part cash, part credit card?? I know if i lived in a neighboring state, i'd be buying as much as i could across the border in a sales tax free state.

By the way...... don't worry about us ! Our state makes up for the lack of sales tax in many other ways....... its no free ride !

 

[LarryRB]

I live in CT and bought out of state, The savings was beyond tremendous, however I won't post pricing here,, I did have to pay sales tax though.. THe particular dealer whether paying cash or financing with a UCC certificate charges CT sales tax because CT tax dept is constantly auditing them,., So to dance around sales tax here isn't that easy. AS far as buying 400 miles away,, I would do it over and over again... What I saved more than makes up for any down time and possible problems,., I bought a Kubota L 48 TLB.. Never had a problem other than normal oil and filter changes,,, over 600 hrs on it now, and way passed it's warranty period,

 

[kurtfromct]

hay LarryRB, just wondering where did you purchase your tractor? were they helpful? thanks

 

[LarryRB]

just sent you a private message