Sales Tax

[Bird]

Hmmmm, Von, it seems that you have the same opinion of sports stadiums that I have (although I've been lead to believe we're in the minority)./w3tcompact/icons/wink.gif I spent 5 years traveling full time in an RV, and some of the Oregon RV dealers advertise to buy an RV in their state and avoid the sales tax. In my case, I bought a motor home in Las Vegas, then registered it (and paid the sales tax at that time) in Texas. In Texas, you can avoid the sales tax on a tractor if you can sign the paperwork saying that it is for "farm use." I won't go into the details of the definition of "farm use", but would expect that other states may have similar exemptions.

Bird

 

[Von]

Bird,
New York has that too, but you have to prove that you use it to generate an income from using it.

Von

 

[Bird]

Yep, Von, in Texas, too, and in my case, it's darned little income, but there is some (I keep hoping for more)./w3tcompact/icons/smile.gif

Bird

 

[BobT]

A clarification ... another thread has already taken up this topic of sales tax on out of state purchases. But, it is incorrect to say that Internet or any out of state sales are "tax free." It is ONLY that the seller (or dealer) is not obligated to collect and remit sales tax to any other state than his or her own legal state of business (unless the business has a legal "nexus" or presence in that other state).

Almost every state (or in fact every state I suppose) tells its citizens to remit a "use tax" to the state for any items purchased out of state, nd upon which no sales tax was paid to the selling vendor. Many are now adding this as a line on State income tax forms---filed under penalty of perjury.

I realize that as a practical matter, almost NO ONE reports or pays this use tax. But that is not the same thing as saying that out of state purchases are "tax free."

As I noted in the other discussion, some states send the tax collectors to the malls just over the border of the home state, and actually photograph license plates and later send letters to the owners "inviting" them to send in any tax, should they owe any.

It is also true that any machinery purchased by installment credit terms, is liable to have a UCC1 lien filed against it. Since this identifies the item, value and purchaser, and is in the state database, one should not be too surprised if the state tax department snoops into the location and terms of the purchase.

BobT.

P.S. I am not a lawyer and this is not meant to be legal advice.

A Indiana Boy

 

[Bird]

Thank goodness, Texas doesn't have a state income tax; yet!/w3tcompact/icons/smile.gif

Bird

 

[BDJ]

All who have responded,
Thanks for all the info. Very enlightening yet still somewhat confusing. The one issue which has not beed addressed yet is that of Kubota supplying sales information to the state of the purchaser. BobT and others have noted that credit purchases can leave a traceability trail which the state can pick up and pursue collection of state sales tax. However, in the case of a cash purchase, I am assuming this trail does not exist. Which brings me back to my original question:

Does Kubota provide sales information to the state of the purchaser, based on the purchaser's warranty registration information?

Anyone know the answer to this?

Thanks again.....

Brad

 

[BobT]

Brad,

You asked: Does Kubota provide sales information to the state of the purchaser, based on the purchaser's warranty registration information?

The only one who could answer this with certainty is the Kubota Tractor Corp. However, even if they did so, there is absolutely zero chance that they would inform you of the fact.

Do they do so? Well, if they do, then every other corporation/business in America would be doing so as well. Why would ONLY they do it? It would have to be a state law, and it would be common knowledge, by now.

I operate four in different businesses, separate fields---none of the type of reporting you query about occurs (but they do file a lot of forms!).

So, does KTC supply the state with sales tax compliance-enhancing info on every tractor sold? The odds are small, very small. But, as noted elsewhere, the stae is ingeneous in generating data for sales tax collection purposes. The inter-linkage of data now (thanks to computers) is getting scary. I always just ASSUME that "They" know everything. I sleep good at nite <g>.

BobT.


A Indiana Boy

 

[Anonymous Poster]

Dealers have told me the same thing, you finance it they or you could get hit, a cash sale is a no brainer. And assuming they do hit you what is their leverage? With a car it's no new license tabs. With a tractor...they can't seem to lock up scumbags, do they really want to come after me? Would I pay the extra money for them to waste it? Without a fight? Put a lien on my land? Fine, it will stay in the family for the next 800 years. How is their swat team budget? Lifes too stressful as it is, I love watching things grow and will meet them on my land anytime to disperse with my bent up hostility towards "government"

 

[Von]

Ouch!!!!

 

[EddieW]

Our state sales tax is 5.5% but local governments can add additional. It averages about 7.5%. I found some (Kubota, JD, NH, Long, Cub) dealers outside city limits so I paid the 5.5%. If we buy things to run or use in a business such as a tractor for a farm or landscape company, we get a tax number from the state and pay no taxes on it. This causes a lot of fraud. It would amaze you how many 5 acre farms we have with no visible crops growing. I doubt that Washington would ever find out you bought a tractor in Oregon. If you think it is illegal, don't do it, if you think it is ok, do it. Somebody will tell you if you are right.