Sales Tax

SidecarFlip · Apr 7, 2019

Just curious, when you buy a new smaller tractor from a dealer, for non ag use, do you pay sales tax on the purchase or not.?

You do on an automobile or pickup truck, how about a tractor or implements?

fruitcakesa · Apr 7, 2019

Sales tax paid in VT for non AG use equipment.

shiraz627 · Apr 7, 2019

Paid tax. I should of bought it from the dealer in Florida and I would have saved the sales tax since I live in GA.

Howling · Apr 8, 2019

What is taxable and how much is set by each state.

shiraz627 said:
Paid tax. I should of bought it from the dealer in Florida and I would have saved the sales tax since I live in GA.

When you buy out of state w/o sales tax you are suppose to pay that sales tax directly to the state. MA calls it use tax and has line on state income tax form to declare and pay.

sparky45 · Apr 8, 2019

No sales tax in KS if for Ag use.

85Hokie · Apr 8, 2019

sparky45 said:
No sales tax in KS if for Ag use.

None in VA ......IF you sign the Agriculture use form - otherwise ......4.3%.

That 4.3% hurts the feelings.....when you buy a 20K tractor!

AllDodge · Apr 8, 2019

Depends on the state, but most that I'm aware of all charge tax for non-ag use. I will be paying tax next year for the tractor I bought this year from a farm/sales business 6%

For KY, If buying out of state and having it delivered then no tax. If picking up your self, then taxed at that state rate

SidecarFlip · Apr 8, 2019

Interesting. Here in Michigan you need to prove you are a legitimate farm operation to qualify for a no tax exemption which isn't a problem for us. We are an LLC listed as a farm, even states that on the farm truck and I do ag exemptions with all my suppliers which need to be renewed every year.

shiraz627 · Apr 8, 2019

Howling said:
What is taxable and how much is set by each state.

When you buy out of state w/o sales tax you are suppose to pay that sales tax directly to the state. MA calls it use tax and has line on state income tax form to declare and pay.

Your absolutely correct, but I think I could of gotten away with it here.

shiraz627 · Apr 8, 2019

SidecarFlip said:
Interesting. Here in Michigan you need to prove you are a legitimate farm operation to qualify for a no tax exemption which isn't a problem for us. We are an LLC listed as a farm, even states that on the farm truck and I do ag exemptions with all my suppliers which need to be renewed every year.

Same in Georgia. I looked into it after the Mahindra dealer in Florida told me most people don't pay tax on there tractor purchase. True only if you have a legitimate AG exemption. My mini farm which features 125' of irrigated row, citrus tree's and blueberries and figs did not pass the test.

AllDodge · Apr 8, 2019

Depends on the State and joint agreements

Example: I have a farm and a farm number but do no commerce as a farm, so no tax exemption.

Buy tractor and don't pay sales tax, and if the state finds out I owe the tax, a penalty, and interest for all the time it takes for them to have found out I cheated them out of the funds

If I buy out of state, and have it shipped in and the other state has no agreement with mine, I owe no tax.

If I buy out of state and go get it my self, I owe tax at that state but no tax at my state

Same thing happens with anything else buying not just AG

Kurtee · Apr 8, 2019

Minnesota sales tax of 6.875% applies plus 1/2% county and 1/2% city in some areas. It sucks, but what can I do? Sales tax was temporary when it was originally instituted. Dream on. Someone needs to pay for all the services in this state. Ag is exempt but not as much as the farmers would have if it was their way. Gotta say I agree with them on that.

BAP · Apr 8, 2019

Sales Tax!! We Don’t Pay No Stinking Sales Tax.
Tax Free New Hampshire

Tire Biter · Apr 8, 2019

BAP said:
Sales Tax!! We Don’t Pay No Stinking Sales Tax.
Tax Free New Hampshire

Lol. I’ve seen NH property taxes.

don’t fool yerself

Howling · Apr 9, 2019

It is not just joint agreements between the states.

After last year supreme court ruling (SD vs wayfair) states can require larger retailers to collect sales tax shipped in to the state. Each state implementation is different. The notice I got from CA that set the threshold at $100K or 200 sales per year to collect sales tax for them. This is aimed at online retailers. But does not take many tractors from FL delivered to GA to reach the threshold to start collecting sales tax.

Beaudeane · Apr 14, 2019

Bought from Tn dealer. Live in ga. 30 mins from state line. Dealer said no sales tax if he did free delivery. Sales tax if I pickup from dealership. No titles on tractors to register at courthouse like u do on a car or trk. No flags thrown to the locals. May pay tax on it one day plus extra but I doubt it. Good luck with ur purchase & save all u can where u can but get what u want. Buy once cry once

GeoHorn · Apr 14, 2019

I used to work for the comptroller in Texas (sales tax authority) and unless the buyer has a legitimate exemption then the sales tax is due if ownership transfers within the state... and a "use tax" which is equal to the sales tax is due if sales tax was not paid in the state where it was acquired.

Legitimate exemptions are: Purchased by a registered business for RE-sale, One-time replacement of existing equipment of similar value (allowed once per annum), Ag/Timber Exemption, or a valid Sales-Tax-Exemption Certificate (allowed for certain operations and charities.)

I personally hold an "Ag/Timber" exemption certificate. This required that I apply for the exemption, valid for two years, based upon my business of producing hay for sale to farmers/ranchers. The state has no requirement that I document production or sales of that hay. (I've had a horrible crop failure for the last two years, partially due to hog damage. I sometimes land my airplane in the hayfield.)

SidecarFlip · Apr 14, 2019

GeoHorn said:
I used to work for the comptroller in Texas (sales tax authority) and unless the buyer has a legitimate exemption then the sales tax is due if ownership transfers within the state... and a "use tax" which is equal to the sales tax is due if sales tax was not paid in the state where it was acquired.

Legitimate exemptions are: Purchased by a registered business for RE-sale, One-time replacement of existing equipment of similar value (allowed once per annum), Ag/Timber Exemption, or a valid Sales-Tax-Exemption Certificate (allowed for certain operations and charities.)

I personally hold an "Ag/Timber" exemption certificate. This required that I apply for the exemption, valid for two years, based upon my business of producing hay for sale to farmers/ranchers. he state has no requirement that I document production or sales of that hay. (I've had a horrible crop failure for the last two years, partially due to hog damage. I sometimes land my airplane in the hayfield.)

You need to keep the plane off the forage....

Farm Gear · Apr 14, 2019

New York State Claims

You don’t have to pay sales tax on most goods and services you buy, as long as you use them predominantly (more than 50%) in farm production. Farm production is producing goods for sale by farming. However, you must pay sales tax on goods and services you buy for your personal use.

Botamon · Apr 22, 2019

No sales tax in Oregon either!

Sales Tax

Banned

Well-known member

Member

Member

Active member

Moderator

Member

Banned

Member

Member

Member

Active member

Well-known member

Active member

Member

New member

Well-known member

Banned

New member

Well-known member