Taxes on tractors

   / Taxes on tractors #31  
Thanks for sharing. When it comes to taxes and not understanding them, i prefer to check everything with the IRS directly. Their customer service https://irs.pissеdconsumer.com/review.html is always available to answer all my questions and help me in a difficult situations.
 
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   / Taxes on tractors #32  
back when i bought my tractor i didnt even know they tax tractors. i purchased mine in Washington state, and wasnt hit with their sales tax, but i had to pay Idaho sales tax. Since i didnt have a FARM exemption, i had to pay taxes. if i had planned ahead, i could have first established my place for farm exemption (which i did after the fact) and i would not have had to pay the sales tax. live and learn. no yearly tax on tractor.
 
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   / Taxes on tractors #33  
There is no such annual tax on personal property in Colorado - at least not on machinery, tools, tractor...things like that. I'd be curious to see how states differ.

Missouri's tax wouldn't keep me from moving there. It's beautiful.

Colorado does have a general one time sales tax on new purchases. It varies by county but is around 10% total.

However, once you buy it and get it home there are no more fees here if it is used on your own property....or more or less... In a nearby town, tractors can travel public roads, but if they venture out on the highways for any distance they are required to be licensed ... I'm not sure what all the rules are for that.
When I asked about a 20 mile road trip to bring home a new/used tractor, the sheriff told me that occasional road use was OK - but they wanted safety reflectors, some flags mounted, and preferred that someone follow in a car with flashers on.

rScotty
 
   / Taxes on tractors #34  
There is no such annual tax on personal property in Colorado - I'd be curious to see how states differ.

rScotty
This is one of the more difficult research items. Terminology makes no sense and confuses search engines. Property (real estate) and personal property are not the same thing at all. To make it worse, many states refer to their business property taxes as personal property taxes.

There is no individual personal property tax in TX. Taxes on those items would only be paid at POS. Even then, there are exceptions. My AG related purchases are tax-free. My real property taxes are also lower because of our timber/AG exemption. However, Texas does tax business 'personal' property.

As a kid, I remember my folks having to pay personal property taxes in SD, but that was discontinued on the late 70s or early 80s.
 
   / Taxes on tractors #35  
Unless you have a farm or business, there is a 6% sales tax on tractors here in PA.
You should state that better. There's a 6% sales tax on everything sold in Pa not just a tractor.
 
   / Taxes on tractors #36  
You should state that better. There's a 6% sales tax on everything sold in Pa not just a tractor.
What he said made perfect sense. Maybe you are reading into it. He did not imply that only tractors have a 6% sales tax. He specifically pointed out that the tax does not apply to those who are using it for agriculture or business. "Everything" in PA is not exempt from taxes for businesses or agriculture.

I don't feel like doing the research specific to PA, but in most taxing jurisdictions, businesses pay the same sales tax as everyone else unless the items being purchased are directly used in the creation of a product from those purchases. For example, a bakery would not be exempt from taxes on a tractor because tractors are not part of the baking process. On the other hand, many jurisdictions have a broader approach to agriculture as it is much more difficult to define what is directly applicable. For example, I can get my tractor and my fencing materials without sales tax because they are used in the 'business' of managing my agricultural property. In some (many?), states, this small benefit is used to encourage people to keep land in production rather than build on the land. (Production may be fallow in this case)
 
   / Taxes on tractors #37  
I realize the answers to this question will vary by state, but I’m curious what kind of yearly property taxes people budget to pay on their tractors. I’m in the tractor buying process, and don’t want to get into a bad situation because of variables I failed to anticipate.
I'm confused at the term "yearly property taxes" referring to tractors.
You won't pay a one time tax on the purchase of a tractor if you have a farm (ag) exemption.
If you insure your tractor through your homeowners insurance there will be a slight increase in your homeowners insurance.
 
   / Taxes on tractors #38  
You should state that better. There's a 6% sales tax on everything sold in Pa not just a tractor.
Unfortunately, this is very true but the OP was referring specifically to tractors.
 
   / Taxes on tractors #39  
Unfortunately, this is very true but the OP was referring specifically to tractors.
I was trying to make it clear you don't pay taxes on a tractor every year you pay when you buy it like anything else you buy.
 
   / Taxes on tractors #40  
No sales tax on tractors, equipment and implements in Texas if you have an ag exemption. There's also no state income tax or tax on personal property--Only real property (land and home). Texas does however have one of the highest sales tax rates in the nation at 6 1/4% and Texas also allows city/county sales tax over that UP TO 8 1/4%. It's no wonder Texas has a $30+ Billion budget surplus. :cautious:
 
 
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