Buying Advice Out of State Sales Tax Confusion

   / Out of State Sales Tax Confusion #11  
Oregon residents when buying in WA state without paying WA sales tax...
 
   / Out of State Sales Tax Confusion #12  
When I bought my tractor I lived in Illinois and purchased it in WI. In Wisconsin you don’t pay any tax if you state it’s being used for farming

Illinois never asked and I never told. That state stole enough of my money over the years so I didn’t feel obliged to pony up more
 
   / Out of State Sales Tax Confusion #13  
You really have to work out the math. Would the $800 fee be less than the PA tax? If you paid the delivery fee and they delivered it to you in MD, they would not collect tax. YOU would be responsible for telling the state of MD that you purchased this equipment and dutifully remitting the use tax to them. How many people do the honest thing? Because the borders of PA/MD/VA/WV are so close, it doesn't take much to purchase 'over the border' and have items delivered to you. Unless you tell them, how would MD even know this purchase was made?

If this was a business purchase, that's a different story.
 
   / Out of State Sales Tax Confusion #14  
When I bought my M used, in state, the dealer asked if I had a tax exemption. I said yes, he took my word for it and then delivered it for free.
 
   / Out of State Sales Tax Confusion #15  
Just keep in mind that if you are thinking about not paying sales tax in your state is if you finance the tractor then there's a record of where it's located and who owns it. As more and more states are looking for money they certainly could have state workers pouring over the leans on things like tractors to see who didn't pay and if they are exempt.
 
   / Out of State Sales Tax Confusion #16  
I live in WA and have a state sales tax exemption card for my business. It allows me to by-pass state sales tax on anything purchased and directly used in my business. The idea being - I will charge state sales tax on anything I sell from my business. The state will get their $$$$ in this manner.

I seriously considered utilizing this feature when buying my Kubota and various implements. However, upon reflection - I didn't want to get sideways with the state tax dept and have a long running battle on this issue. I bit the bullet and paid state sales tax on everything.

Am I a weenie, woosh - perhaps on this matter. But consider this - the state has a whole lot more money to fight a potential suit, in court, than I ever will.

Besides - I'd rather go with the flow than have to paddle upstream in this area.
 
   / Out of State Sales Tax Confusion #17  
In Canada a few years back it was popular to ship bricks out of province so that a merchant could prove 'out of state sales', registered post naturally, for the proof of 'out of state' delivery. Not having a place of business in the other province you could not collect. They created a uniform hospital tax to close that gap'

What many did not know was that selling USA made goods sold back to the USA from Canada was eligible for tax refund based on invoice value. Was valid for used goods. You quoted 'USA goods returned to country of origin'.
It was great for Gov't surplus electronics as it was all USA made and the used market was in the US.
 
   / Out of State Sales Tax Confusion #18  
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   / Out of State Sales Tax Confusion #19  
I purchased a new tilt bed trailer in PA. I'm a NY resident and did not pay PA sales tax. Had I registered it in NY I would have paid sales tax then. But I put Maine plates on it and did not pay sales tax there either.
I also purchased a Kubota BX 2380 from Kentucky. No Kentucky sales tax for an out of state resident.
 
   / Out of State Sales Tax Confusion #20  
I live in WA and have a state sales tax exemption card for my business. It allows me to by-pass state sales tax on anything purchased and directly used in my business. The idea being - I will charge state sales tax on anything I sell from my business. The state will get their $$$$ in this manner.

I seriously considered utilizing this feature when buying my Kubota and various implements. However, upon reflection - I didn't want to get sideways with the state tax dept and have a long running battle on this issue. I bit the bullet and paid state sales tax on everything.

Am I a weenie, woosh - perhaps on this matter. But consider this - the state has a whole lot more money to fight a potential suit, in court, than I ever will.

Besides - I'd rather go with the flow than have to paddle upstream in this area.

Likely a good decision on your part being a business owner. I have been directly involved with several sales and use tax audits in two states over the last 25 years. You do not want to get on their radar as they can make life miserable for you and your pocketbook. Tax regulations are a minefield. Auditors would camp out for 2-3 weeks.
 
 
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