Buying Equipment out of state TAX or not?

[John464]

Say you buy a piece of equipment in either Alaska, Delaware, Montana, New Hampshire and Oregon you are not charged sales tax.

You then take your new piece of equipment to your home state which has a sales tax rate of 7%.


What do you do?

NOTE: this poll is in regards to non DMV equipment, it doesn't require a registration or tags.

 

[ASD]

?

? new or used
most used no tax
most new will be taxed

 

[Husky137]

In mass you are supposed to pay the 5% use tax on out of state purchases. Most I know don't bother and there is no enforcement that I have ever heard of.

 

[begleytree]

if theres no registration then no, eff em. they get enough taxes, imo.
if theres registration/title, then no way to get around paying that when you get home with it.
-Ralph

 

[John464]

? new or used
most used no tax
most new will be taxed

new or used has no bearing on whether you are liable to pay tax. a tax is imposed on a purchase price.


Im not suprised to see that only a few people know the law regarding this. I still dont know what is correct. Have to check with accountant this week. New equipment dealer is telling me otherwise.

 

[Grace Tree]

I bought a chipper in Michigan, signed the tax deferment certificate and went to my county title agency in Ohio and tried to pay the sales tax. The head clerk asked me just why in the world I thought they'd have anything to do with collecting sales tax on a chipper I bought in Michigan. I explained it to her and she told me she'd never heard of anything like that and they only collect on registered motor vehicles. I tried. I never ever beg anyone to take my money.
Phil

 

[WadePatton]

He tried!

As was said before, eff em.

The moment they start impressing me with effective and frugal expenditure of the dollars they already collect, I'll gladly pay more taxes.opcorn:

 

[John464]

Small Wood,

when you filed your taxes at the end of the year you did not voluntarily add the "use tax" for out of state purchases such as that chipper? I know it's voluntarily accepted/collected by all states that collect tax. dont know if its enforced, but I heard if you do come up on an audit and there is traces(paper trail) of out state purchases and a "use tax" has not been paid. the business is subject to a fine on each purchase, monthly interest, and plus the tax that you were suppose to report on your tax returns that year.

I have people telling me every option in the above poll.

Check out this thread. has some more info on this subject http://www.tractorbynet.com/forums/nh-buying-pricing/95878-buying-tractor-out-state-sales.html

 

[howel07264]

Small Wood,

when you filed your taxes at the end of the year you did not voluntarily add the "use tax" for out of state purchases such as that chipper? I know it's voluntarily accepted/collected by all states that collect tax. dont know if its enforced, but I heard if you do come up on an audit and there is traces(paper trail) of out state purchases and a "use tax" has not been paid. the business is subject to a fine on each purchase, monthly interest, and plus the tax that you were suppose to report on your tax returns that year.

I have people telling me every option in the above poll.

Check out this thread. has some more info on this subject http://www.tractorbynet.com/forums/nh-buying-pricing/95878-buying-tractor-out-state-sales.html

With chance of an audit 1 out of 100 id take my chances!

 

[Grace Tree]

Small Wood,

when you filed your taxes at the end of the year you did not voluntarily add the "use tax" for out of state purchases such as that chipper? I know it's voluntarily accepted/collected by all states that collect tax. dont know if its enforced, but I heard if you do come up on an audit and there is traces(paper trail) of out state purchases and a "use tax" has not been paid. the business is subject to a fine on each purchase, monthly interest, and plus the tax that you were suppose to report on your tax returns that year.

I have people telling me every option in the above poll.

Check out this thread. has some more info on this subject http://www.tractorbynet.com/forums/nh-buying-pricing/95878-buying-tractor-out-state-sales.html

Yes, you're correct and I guess this is where me and my personal integrity parted company. When I had my taxes done I asked my accountant if I was liable to claim the taxes on my return. She simply said that she wasn't going to let me do that and that was the end of it. Do I owe them. Yes, I believe do. It's just that after dealing with the arrogance of the people that were supposed to collect them it didn't take much effort when my accountant told me to forget about them. Not a good justification but that's where I stand right now.
Phil

 

[John464]

I hear ya. I always try to play by the rules for the sake of sleeping better at night. I'm most likely going to do the same as you and do what my accountant suggests.

 

[ASD]

new or used has no bearing on whether you are liable to pay tax. a tax is imposed on a purchase price.
QUOTE]

not true
if u do work in the state u buy it in u go by that states laws if the piece is used and u bring it to 1 of your other yards no added tax as long as it is used (check 4 what your state calls used) if u buy a new pice and bring it in as new u pay the tax

 

[John464]

new or used has no bearing on whether you are liable to pay tax. a tax is imposed on a purchase price.
QUOTE]

not true
if u do work in the state u buy it in u go by that states laws if the piece is used and u bring it to 1 of your other yards no added tax as long as it is used (check 4 what your state calls used) if u buy a new pice and bring it in as new u pay the tax

I just googled cali law and it does not say anything about new vs used. It goes by purchase price http://www.boe.ca.gov/pdf/pub110.pdf http://209.85.165.104/search?q=cach...use+tax+out+of+state&hl=en&ct=clnk&cd=1&gl=us

 

[ASD]

I just googled cali law and it does not say anything about new vs used. http://209.85.165.104/search?q=cach...use+tax+out+of+state&hl=en&ct=clnk&cd=1&gl=us

"Please note: If you used your purchase outside of California before bringing it into the state, or if you’re not sure whether your purchase is taxable, please call our Informa?tion Center for assistance " if u used it in the state u got it in u don't pay tax when u bring it into another state. it's just like if u go Chase storms u don't pay every time u cross a state line the key is to use it in the state u buy it in and a city bis lic. is allot cheaper then tax

 

[rbtree]

With chance of an audit 1 out of 100 id take my chances!

Wa Dept of Revenue audited me a few years back....for 4 years worth. Had to pay the use tax, which amounted to a hefty amount...mostly items from out of state arborist supply houses...