Buying Advice Out of State Sales Tax Confusion

[nhbubba]

It was my understanding that tax is due in the state where the item is delivered. A merchant may not have a "presence" in that state and so may not need to collect the tax. It would be your responsibility to pay.

I live in a state with no sales tax. Most big ticket retailers (including tractors) have always been willing to reach an agreement with regard to delivery. If you follow.

 

[johncanfield]

Maybe I missed it - but if you pick up the tractor in another state, pay their sales tax, haul to your home state I would call that a done deal. Different situation with an on the road vehicle that has to be registered. Glad I have an ag exemption, saved me thousands and thousands of dollars in sales tax.

 

[ultrarunner]

Had a retired California friend that did Euro Delivery on a new factory BMW.

Normally CA tax would be due but it took over a year to reach California... 3 months in Europe and another 9 months traveling North America... had a few flights home but without the car.

When it eventually entered CA no tax due which was 6k.

Retired CPA and auto enthusiast.

 

[Tomtint]

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.

I have always wondered if that was even possible. How is a state treasurer going to get finance information from Kubota, Deere, etc in order to scroll through and find personal information. I can see maybe the finance company reporting total liabilities financed for SEC filings, But can't see where they would be obligated to provide personal data.

 

[RickB]

I have always wondered if that was even possible. How is a state treasurer going to get finance information from Kubota, Deere, etc in order to scroll through and find personal information. I can see maybe the finance company reporting total liabilities financed for SEC filings, But can't see where they would be obligated to provide personal data.

Most secured liens are filed in the borrowers county of residence. The information is in the public domain.

 

[Frankenkubota]

Same here in Nc. No sales tax for ag.

You must apply and be approved but, just more forms.

 

[Frankenkubota]

Same here in Nc. No sales tax for ag.

You must apply and be approved for exemption but, just more forms.

 

[Diggin It]

I have always wondered if that was even possible. How is a state treasurer going to get finance information from Kubota, Deere, etc in order to scroll through and find personal information. I can see maybe the finance company reporting total liabilities financed for SEC filings, But can't see where they would be obligated to provide personal data.

Sales records are not 'private' or personal information. New laws regarding sales taxes require filings of sales information including buyers and their places of residence specifically because so many were not paying sales taxes on out of state purchases.

 

[Frankenkubota]

When I lived in Portland Oregon avoiding WA state sales tax was a routine endeavor. If memory serves, Oregon has no sales tax and Wa has no income tax?

It a cottage industry, people trying to avoid both. Keeps the accountants busy.

Just before I escaped ..... there was a story about a woman who owned a bunch of mattress stores, like 8+10, a bunch. I believe The business and all locations were in Portland, just A couple miles across the river was WA.

Turns out a huge % of her business was in WA because customers would avoid WA sales tax. That痴 not legal and that won稚 MAGA.

Every time I give them a penny it absolutely gags me. I致e seen, first hand, the waste, corruption and apathy.

It痴 easy to spend other people痴 money!

 

[coldsteelva]

Most secured liens are filed in the borrowers county of residence. The information is in the public domain.

Except, as has been pointed out before, dealer/manufacturer financing is NOT a retail loan in the traditional sense. If you buy a car, there will be a lien filed on the title and the finance company will repossess the vehicle for non-payment. With the tractor financing agreements/sales contracts - the manufacturer does not hold a lien upon the tractor as collateral for their lending. It is pretty much an unsecured personal loan (unless you purchase the payment protection) and if you fail to pay - the only thing that will happen is they will attempt to get you to pay or send you into collections where the collection agency buys your debt and hounds you while also trashing your credit report/score.

If I financed a tractor today, took delivery tomorrow, I could sell it that day and walk away with cash and NEVER pay the finance company. They do not hold any collateral and that tractor is 'gone'. Where there is no physical presence in a state, physical retailers are not obligated to collect and remit another state's taxes for them.