drcollie
Silver Member
Here's something interesting that's happening...back in March 2002 when I bought my Kubota brand new I was price shopping like any good shopper does. Actually, I was pretty much squeezing a coupla dealers out of the LAST NICKEL and it cam down to a Maryland dealer who could deliver to bike to me for "xxxx" dollars and my local Virginia dealer who was $ 100 less. But then there was the sales tax on the VA purchase which was $ 742.50....vs. the Maryland dealer's tax-free status and delivery charge of $ 100.00.
So I told the VA guy I'd buy in Maryland, as when all was said and done I'd be about $ 500 less out-of-pocket. Not wanting to lose a sale, he said 'Do you have an out-of-state address I can show this tractor delivered to?"
I said "No, I don't".
Then he replied "I'll take care of the sales tax."
As I was looking for net-net, I said "Lets do it" and he brought the tractor over to the house (In VA) and we signed all the paperwork in the driveway. I noticed his "ship to" address was in "Olney, MD" but didn't pay it much mind as I had a shiny new BX22 in the driveway and that was capturing all my attention.
Now, almost two years later, here comes a letter in the mail from the dealer saying "We're under review by VA State Taxing Authority and you must sign and notarize that you took delivery of this unit to the Olney address or pay $ 742.50." And they enclosed a form to get signed and notarized if you indeed DID take delivery out-of-state.
So I look at this and think "This is so bogus".....they cooked their books and now I have to pay. I could sign the form, get my signature notarized and send it in. Chances are nothing more would happen...BUT....BUT......BUT.....to do that commits fraud and against the State of Virginia, and then I'd have a much larger issue on my hands than a tax bill.
Even if I did send that in, they can come back to me for the Use tax (equal to the sales tax) on out-of-state purchases unless the tractor is proven to be kept at a property in Maryland (which of course it's not as I have no idea who even lives at that address). Best not to mess with the tax collectors.
Who's at fault?
I've decided it's me.....why? Well, I more or less knew what they were proposing to do and didn't stop it. I let them show a fictional address on the invoice rather than insisting they lower the purchase price and charge me the correct sales tax.
So I'll pay the sales tax rather than compounding the issue to a higher level, but you can bet **** well I'll be speaking to the owner of the Kubota dealer about this and looking for some reduced pricing on any future implement buys as some compensation.
Lesson to be learned and a head's up for ya'll...
Don't screw around with your states sales taxes by allowing a merchant to give you a work-around. If you do, you may very well find yourself the subject of a 'reach-around' a few years down the road and paying the sales taxes after the fact.
This also applies to product coming IN to you from out of state. Almost all states require you to pay a USE tax, so if you buy a tractor in North Carolina and have it shipped, you may very well get a USE tax bill in the mail a few years later when your state conducts a shipping audit.
-Duane C. < a little poorer now, but much wiser.
Northern Virginia
So I told the VA guy I'd buy in Maryland, as when all was said and done I'd be about $ 500 less out-of-pocket. Not wanting to lose a sale, he said 'Do you have an out-of-state address I can show this tractor delivered to?"
I said "No, I don't".
Then he replied "I'll take care of the sales tax."
As I was looking for net-net, I said "Lets do it" and he brought the tractor over to the house (In VA) and we signed all the paperwork in the driveway. I noticed his "ship to" address was in "Olney, MD" but didn't pay it much mind as I had a shiny new BX22 in the driveway and that was capturing all my attention.
Now, almost two years later, here comes a letter in the mail from the dealer saying "We're under review by VA State Taxing Authority and you must sign and notarize that you took delivery of this unit to the Olney address or pay $ 742.50." And they enclosed a form to get signed and notarized if you indeed DID take delivery out-of-state.
So I look at this and think "This is so bogus".....they cooked their books and now I have to pay. I could sign the form, get my signature notarized and send it in. Chances are nothing more would happen...BUT....BUT......BUT.....to do that commits fraud and against the State of Virginia, and then I'd have a much larger issue on my hands than a tax bill.
Even if I did send that in, they can come back to me for the Use tax (equal to the sales tax) on out-of-state purchases unless the tractor is proven to be kept at a property in Maryland (which of course it's not as I have no idea who even lives at that address). Best not to mess with the tax collectors.
Who's at fault?
I've decided it's me.....why? Well, I more or less knew what they were proposing to do and didn't stop it. I let them show a fictional address on the invoice rather than insisting they lower the purchase price and charge me the correct sales tax.
So I'll pay the sales tax rather than compounding the issue to a higher level, but you can bet **** well I'll be speaking to the owner of the Kubota dealer about this and looking for some reduced pricing on any future implement buys as some compensation.
Lesson to be learned and a head's up for ya'll...
Don't screw around with your states sales taxes by allowing a merchant to give you a work-around. If you do, you may very well find yourself the subject of a 'reach-around' a few years down the road and paying the sales taxes after the fact.
This also applies to product coming IN to you from out of state. Almost all states require you to pay a USE tax, so if you buy a tractor in North Carolina and have it shipped, you may very well get a USE tax bill in the mail a few years later when your state conducts a shipping audit.
-Duane C. < a little poorer now, but much wiser.
Northern Virginia
