Dealer Why opt for a Kioti, and a particular dealer?

[bluechip]

IN Arknasas, tractor sales are exempt from sales tax if used for "production of food or fiber as a business". so if you are buying for a landscape business or to mow your lawn a dealer in Arknasas would have to charge sales tax, but a dealer in Texas who delivers would not have to charge sales tax. Yes I was the dealer who was a two hour drive away. ( I'm hoping she bought from Texas because of the sales tax issue and not because she felt I was incompetent.) No complaint on my part, I have sent dozens of tractors out of state and collect no Arkansas sales tax on those...

 

[grdngrrl]

Hey, thanks Chip for the concise reply to Bob's query. And yes, attempting to avoid 1500 bucks in sales tax was my objective. I certainly had no problem with you or your operation. In fact, I was quite impressed with the prompt attention I got from your mechanic when I arrived on the lot and started crawling all over yer CK 30. After a few questions he sized me up quickly and realized that I knew machinery. But then maybe he wanted to get a good look at my zebra striped motorcycle too /forums/images/graemlins/grin.gif
And speaking of avoiding taxes....YIKERS, I just got the real estate reassessment on my properties in the mail today. Ooooo, I'm gonn'a be limping after paying next years county taxes /forums/images/graemlins/frown.gif

 

[Bob_Skurka]

<font color="red"> And yes, attempting to avoid 1500 bucks in sales tax was my objective. </font>

Well I would very strongly caution you to PAY YOUR TAXES. This issue is often discussed here on TBN. I'm sure many folks get away with avoiding their taxes but I am also sure that many get an ugly surprise (it has been reported here on TBN) when they not only get a tax bill but they also get a bill for interest and penalty. Usually the bill arrives about 2 years after the purchase. Under most state laws (probably about 48 out of 50) you would owe your state sales taxes to your HOME state at your HOME state's tax rate. In most instances, this tax is called "use" tax. It is substituted for sales tax when you make an out of state purchase and bring the goods into the home state. Failure to pay this tax is blatently illegal. Reporting your actions here on TBN are proof that you know that the tax is due (you said you are trying to avoid paying them) and that could easily be held against you by your state's revenue department, although ignorance of the law is not considered an excuse, it is often used to provide some level of lenieny.

I am not judging you, just trying to give you fair warning of what could happen, and trying to warn some of the other new folks who may try the same thing.



DISCLAIMER :: I am not a certified tax accountant nor am I a financial planner, however I am regularly called to testify before city, county & state governmental bodies as an "Expert Witness" on issues of excise taxes and how imposing those taxes impacts businesses, leads to illegal activity, and may reduce governmental revenue projections dramatically. I have testified in the House and in the Senates of several midwestern states. Further, I have been used as a witness in federal trials on similar issues.

 

[bluechip]

Good point Bob, I always disclose that tax liability may be due in an out of state customers home state and to check with local authorities. Somehow I get the feeling that that does not happen often...
One sure way for a tax authority to find out about a major out of state purchase is if it is financed, there will be a UCC filing in the very county the property is to located. I think these are still a mtter of public record.

arkansas has a new sticker program for heavy equipment, wouldn't surprise me to see it on farm equipment someday too. You get your sticker when you pay your sales/use tax or provide an exemption form.

 

[Bob_Skurka]

bluechip . . . I applaud you for pointing it out. Some dealers do the opposite and actually advertise that they will sell it to you "tax free" because you are out of state.

I think some folks are simply unaware. Others are very aware and are trying to beat the system, but when those back tax bills come in, they are often more than DOUBLE the original tax amount because of interest and penalty. Typical penalties are 100% of the orginal tax bill. Then add interest for a year or two to BOTH the penalty and the original tax amount.

 

[Mavrik02]

I second/third the motion that you put forth a very well written and thoughtful post.

For the most part I have not seen too many TBN'ers bad-talk other tractor brands. I can honestly say that of all the reading and talking I have done the only brand bashing I have come across was by Kubota dealers beating on Kioti (all four I talked to did this). I realize this isn't reflective of the whole world but it was an interesting development I noted during my own search (which is nearly over).

bluechip, it took an open and honest person to weigh-in with your reply. That was nice to see.

 

[gippolit]

It's funny when I was buying the Kubota dealers did the same to me. I guess that's one reason why I'm a Kioti owner today. Also my Local JD did the same thing.

Regards

Glen

 

[RedRocker]

I think it's better to talk up what your selling as opposed to bashing the competition. Sounds like these guys were skeered of their competition. /forums/images/graemlins/blush.gif

 

[bluechip]

I agree, and it is getting easier and easier as Kioti gets better and better!

 

[Dargo]

Not to add coal to the fire, but an acquaintance of mine (wouldn't call him a friend) works for the IRS and he told me that when they do catch people who have intentionally avoided paying tax, the general rule now is for the IRS to conduct a full audit. Not a very appealing prospect.

And, no, I do not report anyone to the IRS. Since the discussion got to the avoiding sales tax, I just thought that I'd point out that, if caught, expect a full audit of several years worth of your tax returns. I'm sort of surprised the dealer where you purchased didn't offer a casual warning to such. Maybe they did, and you just didn't mention it. I really can't imagine a reputable dealer not. Since I live in the corner of 3 different states, and with internet buying getting big, dealers I know are getting down right ticked at losing a sale because of a sales tax issue. I think one of them has made an anonymous tip to the IRS a time or two when a customer has rubbed the loss of sale in their face.