Sales Tax on Out of State Tractor Purchases

Rick James said:

So my local dealer network just isn’t willing to get aggressive on pricing. Based on this, I reached out to one of the dealers that is well known on this sight that will ship out of state. They have given me pricing that is pretty compelling, but I’m not sure how sales tax works on this sort of thing if it’s not collected at the dealer. I live in Illinois, this dealer doesn’t have any presence in this state, and they would be delivering to me.

Anyone else do this? How did you handle sales tax?

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As a NC resident I just purchased a Kubote M7060HD12 in VA. I paid the lesser VA sales tax. The 20 minute further VA dealer was 11% under the closer NC dealer. It pays to shop around. If you are buying new, make a list of what model and options and send it to several dealers, you'll be surprised at the wide fluctuations. Don't just buy a dealer because he is the closest. I made the mistake of purchasing a Mahindra 5035 12spd shuttle for that reason and won't do that again.

hodge said:

I bought mine out of state, and paid for it prior to picking it up. Because I didn't purchase it- pay for it- in state, I didn't have to pay sales tax.

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I think Hodge is onto it.

I'm no expert, so take it for what it's worth......

I think sales taxes are based, in part, on the point of delivery.

If I go out of state, buy something, put it in the truck and drive away with it, it was delivered at the point of sale. I'm liable for sales taxes at that point, not back "home."

Now, if I'm sitting at my house, buy the same thing over the internet, and have it delivered here, I'm liable for my home state sales taxes.

I can't see where anyone would/could be liable for taxes in 2 states.

Again, no expert, just my limited understanding....

For big purchases with a paper trail the home state will want it's tax. CA & NY are aggressive about it, don't know about others. Farm use is generally exempt. For example, if I buy livestock hay in CA it's tax exempt. Horse hay is taxable. Do the research for your state.

Grumpa Wally said:

As a NC resident I just purchased a Kubote M7060HD12 in VA. I paid the lesser VA sales tax. The 20 minute further VA dealer was 11% under the closer NC dealer. It pays to shop around. If you are buying new, make a list of what model and options and send it to several dealers, you'll be surprised at the wide fluctuations. Don't just buy a dealer because he is the closest. I made the mistake of purchasing a Mahindra 5035 12spd shuttle for that reason and won't do that again.

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You still owe NC the difference between VA sales tax and NC sales tax.

RCW said:

I think Hodge is onto it.

I'm no expert, so take it for what it's worth......

I think sales taxes are based, in part, on the point of delivery.

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No they are based on where you live, your home address for personal purchases or business address for business purchases. True even within a state like mine which has different sales tax rates depending on where you live in the state. I can travel to the highest sales tax area and purchase a vehicle, but I pay the sales tax rate for my home address not theirs.

Lets say you are moving from one state to another and recently purchased a vehicle and paid the sales tax. If you move to NJ say and try to register the vehicle, if its been less than 6 months since you purchased it you will have to pay the difference between the higher NJ sales tax and your previous state sales tax.

It's great to live in Montana. I can buy any vehicle anywhere and I am not required to pay sales tax. I've bought in AZ,CA WA and no tax. Montana does not have a sales tax. All I ever have to do is prove I am a Montana resident.