Taxes on tractors

[Jimbo16720]

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.

You are only 1/4 higher than Pa but our gas tax is the highest.

 

[Tinhack]

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.

Many state and local governments impose ad valorem property taxes on tangible personal property (TPP) in addition to property taxes applied to land and structures. Tangible personal property taxes are levied on property that can be moved or touched, such as business equipment, machinery, inventory, and furniture. There're over 40 states that impose a tax on TPP. Texas is not one of them.

Edited

 

[AndyMA]

Many state and local governments impose ad valorem property taxes on tangible personal property (TPP) in addition to property taxes applied to land and structures. Tangible personal property taxes are levied on property that can be moved or touched, such as business equipment, machinery, inventory, and furniture. There're over 40 states that impose a tax on TPP. Texas is not one of them.

Edited

Conn taxes them (if they know you have them) at the local level. none of my tractors have ever been taxed except sales tax when I bought them. My 44,000 excavator was taxed because the assessor saw it. It got taxed in one of 2 towns depending on whare it was parked on my farm on Oct 1. The 2 towns talked to each other!


The sales tax is a State tax and the personal property tax is a local tax. Connecticut law has required owners of taxable personal property to annually report property owned by them on October 1 to the municipal Assessor since 1949

 

[Torvy]

Many state and local governments impose ad valorem property taxes on tangible personal property (TPP) in addition to property taxes applied to land and structures. Tangible personal property taxes are levied on property that can be moved or touched, such as business equipment, machinery, inventory, and furniture. There're over 40 states that impose a tax on TPP. Texas is not one of them.

Edited

Texas does have that tax if you are a business. I hate the terminology because 'personal' property makes it sound like it is only for individuals.

Tangible Personal Property | State Tangible Personal Property Taxes

Tangible personal property taxes are taxes levied on property that can be moved or touched, such as business equipment, machinery, inventory, and furniture.

taxfoundation.org

 

[Sawyer Rob]

NONE when buying and NONE when owning...

SR

 

[Sawyer Rob]

One year Alaska tried a personal property tax. Only lasted one year. Too many calls - how much are soiled underwear worth - ripped jeans - holes in your mucklucks - holes in your socks - etc, etc. It became a political farce and resulted in one legislator being recalled, back to private life.

That must have been a state personal property tax.

BUT the borrows in Alaska DO have separate taxes, like the Kenai Peninsula Borrough, they DO have a personal property tax.

SR

 

[stevem5215]

In Pa we have variable taxes. In Allegheny county we pay an extra 1% on top of the 6% to the local RAD tax (which was resoundly rejected by voters but pushed through by government anyway) It also affects Philadelpha county areas as well with that extra 1%. But on clothing we don't pay taxes. We also don't have personal property taxes like those mentioned for car valuations. So variable.

 

[Gator6x4]

Businesses still pay 6% in PA.
Farmers are excused from paying 6%.

True businesses pay 6% at time of purchase. They then write the equipment purchase cost off. Where the individual cannot. Farmers are excused at time of sale.

See page 19-22in the included web link.

https://www.sbdc.duq.edu/Files/Admin/Resources%20PDF/Starting_a_Business_In_Pennsylvania.pdf

 

[finn1]

None in Mi.

 

[BoylermanCT]

CT taxes unregistered vehicles including campers, RV’s, snowmobiles, trailers, trucks, passenger cars, tractors, off-road construction vehicles. We even tax horses each year. If you have a farm with $15K in farm income, then you get exemptions for your buildings, equipment etc. Tax rate is set by each town, and ranges from $11 per $1000 of value to $68 per $1000. My town is $33 so a new $50,000 tractor is rated at 70% value or $35,000 and the tax on year 1 would be $33 x 35 or $1,155.

We also pay sales tax on everything we buy. Vehicles under $50K are 6.35%. Over $50K is 7.75%. They get you coming and going!