Tax Savings

Discussion in 'Business Operations' started by wheebil, Jul 14, 2010.

  1. wheebil

    wheebil LawnSite Member
    Messages: 52

    for those of you who live at or near a border state....consider purchasing your next big budget item (zero turn mower) from a bordering state. Advise the business you're from another state and typically they will not charge you sales is supposed to be your responsibility to report the purchase to your home state. Since z-turn mowers are not titled or registered, this is a way of saving several hundred dollars on a $8000 machine. I recently purchased a Bad Boy from Ohio and saved myself $525.00 in PA sales tax had I purchased it at a local dealer.
    Last edited: Jul 14, 2010
  2. MOturkey

    MOturkey LawnSite Silver Member
    Messages: 2,782

    Methinks there is something a little fishy about all this. I mean, according to your post, all I'd have to do when I'm in Alabama turkey hunting is tell them at Wal-Mart I'm from MO and they won't charge me sales tax on my purchases. That ain't gonna happen.

    Now, I know there are some exceptions, such as internet or mail order sales, but I can't imagine a brick and mortar business not charging sales tax on a major purchase, with the exception of titled things like cars and trucks where the sales tax is collected before they can be licensed.

    I may be wrong in all this, but the dealer would have to show some type of exemption for not charging the tax, if they show on their sales. Other states may be different, but here in MO, to my knowledge, the only purchases eligible for exemption are those purchased by a business for resale, and non-profits such as a church or school, and they actually have to show a letter of exemption or sales tax license. Certain agricultural purchases are also exempt.
  3. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    I'm not sure I would be discussing tax evasion in way of options unless
    there exists a legitimate reason why you shouldn't have to pay it.
  4. bradsd

    bradsd LawnSite Member
    Messages: 59

    I had the opportunity to do this, I live on the KY, Ill border. A dealer just across the river offered to not charge me sales tax. I ended up buying from a KY dealer anyway, the Ill dealer let the mowers sit outside in the rain so no sale to me. Plus I would rather do the right thing and pay my fair share of taxes and not worry about it.
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Doesn't make it right but you didn't cross the border looking for that and I think that draws a line as well.
  6. chad56

    chad56 LawnSite Member
    Messages: 105

    He is right. We sell Scag, Blizzard plows, etc and if your out of state its on you to pay your own state tax. Due to the different rates or something like that. I sold some used mowers off craigs list and a guy came from michigan no tax plus sold a plow to a fellow in Indy same thing. We keep record on our end though to cover our butts for the IRS. I know our office girls follow the tax thing to a tee so if they say its good I'm ok with it.
  7. JB1

    JB1 LawnSite Fanatic
    Messages: 5,904

    thats right you can do that and save money,BUT if and when the state you live in ever does a sales tax audit and when they check your records and see you have bought this equipment and didn't pay sales taxes on it, they now have you. Actually you just have to pay the tax then a penality. Trust me I know.
  8. chad56

    chad56 LawnSite Member
    Messages: 105

    not to mention your local dealer might not go out of his way when your in a pinch. You might get told to go back where you got and see if they can help. Not that we would turn down business but you get the idea.
  9. fastlane

    fastlane LawnSite Senior Member
    Messages: 347

    Delaware has no sales tax. Too far away for me but someone closer could save some money.
  10. Martinson9

    Martinson9 LawnSite Member
    Messages: 201

    I would assume you are going to write off that mower as a business expense on your tax return? It will show up as an asset for your business on your tax return. If, and when, you get audited by your states department of revenue they are going to ask to see the invoice for that equipment. When you show it to them they are going to get you for the tax, interest and a penalty. If they see a pattern of you doing this it could be criminal too. In my state, if you don't have the receipt, you didn't pay the tax. I had to pay tax on a GPS I bought from Circuit City because I couldn't find the receipt.

    For a couple hundred bucks of sales tax I'd rather be able to sleep well at night.

    I agree with a previous poster, I'm not sure discussing and giving pointers on tax evasion is a good idea.

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