Buy out of state to skirt Sales Taxes?

Discussion in 'Business Operations' started by zz4guy, Feb 15, 2007.

  1. zz4guy

    zz4guy LawnSite Senior Member
    Messages: 901

    I'm thinking of buying a trailer and some other expensive equipment. At 6% sales tax on a $10k purchase you are talking $600. Do you ever consider buying out of state to escape paying the tax? You might spend more in gas but it's hard to justify $600 in gas.
  2. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Messages: 2,419

    If there is a state sales tax in the state you live in and you buy something from out of state and do not pay tax on it at the time of purchase, you still MUST PAY "use" tax to your state. But I guess you have to ask yourself, would you rather pay the $600 in sales/use tax or pay the thousands of dollars in fines and penalties when you get caught?

    All up to you really.
  3. Vikings

    Vikings LawnSite Bronze Member
    from canada
    Messages: 1,657

    Never mind, I want to buy out of country.
  4. mojob

    mojob LawnSite Senior Member
    Messages: 515

    The way I understand it, if you drive to pick up the trailer in another state, they are required to charge you tax. It's only tax-free if they mail/ship it to you.
  5. muddstopper

    muddstopper LawnSite Silver Member
    Messages: 2,341

    In NC, you will pay the tax when your go to register it and get the tax.
  6. zz4guy

    zz4guy LawnSite Senior Member
    Messages: 901

    That's what I'm thinking of. If you aren't actually there to purchase you are exempt. Hmm even at that... I wonder if it's worth the shipping costs??? Heck I'd rather give the $600 to a shipper than our State Gubment. At least he won't piss it away.
  7. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,808

    when your registers a trailer in CT you will have to pay taxes on it anyhow, even if you bought it used
  8. PaperCutter

    PaperCutter LawnSite Bronze Member
    Messages: 1,996

    When we moved to VA and tried to register the cars, they were going to charge us VA sales tax on the purchase price (we bought both within 9 months of moving) unless we went home and got a bill of sale proving we had paid the sales tax where we bought them. I wouldn't be surprised if your state does the same thing.
  9. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,808

    papercutter, of course, they all do, anything for the buck
  10. Edgewater

    Edgewater LawnSite Senior Member
    Messages: 457

    In Cabada, You get sales tax back. (sales tax charged - sales tax paid on expenses = net payment to gov't) if you buy something from a different province, the tax you pay is then an expense, and does not factor into the above equation.

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