Sale of tractor taxes

lugbolt

Well-known member

Equipment
ZG127S-54
Oct 15, 2015
4,843
1,597
113
Mid, South, USA
Around here they label it as "vehicle sales and use tax".

So if you buy it, you pay tax.
If you are gonna use it, you pay tax.

They're gonna get you no matter which way you look at it.

3.5% from $4,000 to $9999 and then 6.5% from $10,000 to whatever. So if you buy a $80,000 pickup truck, you get to either finance in $5200 + the cost of the license plate, or you just have to pay it at the DMV when you get your plate.

It's a big hit. I usually buy in cash but found that if you finance the sales tax into the deal, you don't have to fork out the huge amount of cash at the DMV when you register.

One time I bought a car for $4050 and they told me I owed about $250 (sales and use tax + registration fee). I wasn't prepared for it, and only brought enough cash for the tags ($27.50) and the lady on the other side of the counter was as rude as they get. So I said ok I'll be back in a little while with cash. And I showed up a while later with a BUNCH of $1 and $5 bills in a bag and requested "sandra" again. She weren't very happy. Told her to watch the attitude, and next time I'll bring pennies. Then I moved. This office here in town is super professional. They actually know how to treat folks. I don't mind going in there.

But I've had it happen to me too, as a service manager, customer wasn't happy about his bill and he paid me in pennies. I didn't gripe. I just made him stay there and watch while I counted them one by one, twice (once to verify). it took about an hour of his time. thought he was being a jerk but realized quickly that it sorta backfired.

Oh and another note while on DMV and "cars". For decades the DMV labeled Antique cars as exempt from certain things, and their license plates were lifetime (as opposed to having to register every year). "Antique" meaning 25 years old or older, and driven to/from shows. That was the extent of the "law". So, a couple years ago Mr. Jack Fortner (one of our illustrious law makers) decides to sponsor a bill that changes the law to 45 years or older. The proposal gathered zero support from the community, rather much opposition, so the original proposal was dropped before it was voted on. The hotrod community won the battle. Or did they? Several weeks pass, Mr Jack Fortner again sponsored almost the exact same bill, and it passed with zero opposition--mainly because the people didn't know about it. They thought they won. His statement was to the effect that "nothing good came from the automotive world in the 1970's and 1980's". Tell that to Every fox body Mustang owner, many corvette owners, Ferrari owners, you get the idea. His opinion duped every single middle aged gearhead, including myself, and I haven't forgotten about it. The fact that the bill was originally scrapped because of opposition, then was drawn up again in the same exact form and passed, speaks volumes for how lawmakers do things, and is one of many reasons I don't trust them.

How would y'all feel about that?
/Rant.
 
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ACDII

Well-known member

Equipment
B2410, L352 Loader, Woods BH70-X backhoe
Oct 21, 2021
660
407
63
Illinois
IL passed a bill signed by the ol fatass himself that raised license plate fees $100, including the basic small trailer plates for 3K and less. They went from $18 a year to $118 a year! Last year a new bill was passed that was meant to eliminate the $100 fee increase on TA plates. Yeah, right, Wrong. It was not the bill originally proposed, instead they replaced that part of the bill with issuing a NEW trailer plate, for trailer less than 2000 pounds and that plate is $38 a year. TA plates are STILL $118 a year. I have two of them, they spend more time in my yard in one year than time on a road in their lifetime. $236 a year to license them. Heck one trailer only cost me $1100 brand new!
 

DominicKm

New member
Dec 19, 2022
1
0
1
USA
It depends on how you declare this sale of the tractor. There are different ways to do it. But to be much brighter, you should read about wealth management, and thus you will know how to monitor this seller properly. You can declare this as income that is part of your wealth and pay very little tax. But to do it right, you must either talk to a specialist or read more about controlling your wealth. By the way, there is a lot of helpful information on the Internet, and I urge you to do it.
 
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