Taxes on tractors

[mo1]

Now I see why it's the Show Me state...

That came from a quote from a Missouri Congressman with the last name of Vandiver who famously stated during a speech in the late 1800s that "I am from Missouri, you have got to show me." Basically, he said "I call BS" in the fancier language used during the old days. In return, Missouri got a state motto and Vandiver got a relatively major street in Columbia named after him. Children who went to school in Missouri learned the story of the state motto but you probably had to live in or near Columbia to actually remember who said it.

 

[LS Tractor Owner]

So, I have learned something new! Missouri taxes almost everything!
It was a state that we were considering moving to, it off our list now.

 

[Lineman North Florida]

Florida has agricultural exemption for farmers all others pay state sales tax, now individual counties consider tractors and equipment as tangible property and will tax you on them, I keep the gates closed and locked to my barns, don"t want them snooping around .

 

[Sawyer Rob]

Depends on where you live in Alaska, some boroughs have a personal property tax.

SR

 

[Raul-02]

yearly property taxes

It is possible you are simply confusing the term "real property" with "personal property."

"Real property" is what the laity calls "real estate" or just plain "land."
"Personal property is not taxed. SHHH Don't give 'em any ideas. You paid a transaction tax when you purchased it.
Real Property is taxed annually by the thieves in your municipality.

 

[Raul-02]

now individual counties consider tractors and equipment as tangible property

They are taxing personal property using a non-existant newly minted term "Tangible Property" as the cloak?
I'd sue. The tractor like the car is personal property That's just money grabbing.

 

[Raul-02]

some boroughs have a personal property tax.

Sheesh Comrade, no one takes it to federal court? Talk about a way to chase people out of town.

 

[ultrarunner]

I use to have a line on property tax for personal property so I called and learned I was paying annually for the stove and refrigerator...

Told them it is a rental home and I no longer furnish fee standing appliances so there is no stove or refer.... saved me $4

 

[ruffdog]

Yes. All farm equipment which is located in the state of Oklahoma shall be listed and assessed as personal property in the county which the equipment is located as of January 1st of each year. Livestock is no longer taxable in Canadian County. The following are examples of taxable farm equipment:

Fuel Powered: Tractors, Swathers, Combines

Other Equipment: Box Blades, Brush Hogs, Discs, Cultivators, Balers

Farm Personal Property | Canadian County, OK - Official Website

 

[ruffdog]

So, I have learned something new! Missouri taxes almost everything!
It was a state that we were considering moving to, it off our list now.

Missouri is one of the more tax friendly states if you are retired though.

Missouri Retirement Tax Friendliness - SmartAsset

Every state tax code is different and people should research which ones benefit their personal situation.

The Best And Worst States For Retirement 2022: All 50 States, Ranked | Bankrate

 

[Herness]

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.

 

[grsthegreat]

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.

 

[rScotty]

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

 

[Torvy]

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.

 

[Jimbo16720]

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.

 

[Torvy]

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)

 

[tradosaurus]

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.

 

[bdhsfz6]

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.

 

[Jimbo16720]

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.

 

[Tinhack]

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.