WI tractor Sales Tax for timber use

[cobalt650]

We have 250 acres in Wisconsin. About half was logged this year, the next will be next year. I want to purchase a tractor to repair road and trail damage. Also to remove light debris. The dealer says this tractor sale would be sales tax exempt. Does this pass the litmus test? Thanks.

 

[ishiboo]

The dealer is responsible for charging and reporting sales tax, if they say it's exempt then it's on them.

If you plan on writing this off as a business expense, then it would be a different story.

 

[cobalt650]

Zero intent to write anything off. In all honesty, it will take years to clean up the "carnage" from the logging at the rate/time available we have to do so. The only time taxes would be an issue is at initial purchase, no intent to depreciate or write anything off.

 

[greif]

You would need a farm or business tax ID to give the dealer to be exempt in WI

 

[Rock knocker]

You would need a farm or business tax ID to give the dealer to be exempt in WI

Uh uh.

https://www.revenue.wi.gov/forms/sales/s-211.pdf

 

[cobalt650]

Uh uh.

https://www.revenue.wi.gov/forms/sales/s-211.pdf

This-----looks promising.

 

[oosik]

The dealer that I bought my tractor from wanted to know if I wanted to claim tax exemption. I have a business and a business tax ID exemption card. It would have been a strain and I would always be under the watchful eye of the tax man. I haven't claimed tax exempt for the tractor or any related equipment.

 

[motownbrowne]

As a farmer, I use that form often. No business ID (EIN) needed. I bought my tractor tax free.

However, I don't see anything about an exemption for timber use. Now, I make maple syrup (it's an agricultural product). When I buy any chainsaw/firewood/timber handling gear, I use my tax exemption because I'm using that stuff to make firewood cook syrup, and to maintain my sugar bush. I'm not saying you should get into making syrup to save on some sales tax, but it's the way it works for me.

 

[prichard]

Here in GA we need to sell $3k in ag products to get the card. Doesn't say you have to make a profit.

 

[motownbrowne]

Here in GA we need to sell $3k in ag products to get the card. Doesn't say you have to make a profit.

No provision for making a profit here either. If you had to make a profit to be a farmer, that'd exclude a lot of farmers.