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Legal counsel tells me; a vendor is not required to collect state sales tax on interstate sales made to states where the vendor does not maintain a business; however, the state of residence of the purchaser may require the buyer to pay state sales tax, collecting the tax when the buyer registers the machine.
Technically, if you pick up your quad from a dealer, the dealer is required to collect state sales tax for the state where he's doing business. However, if the dealer ships the quad to your home state, and the dealer has no operations where you live, he is not required to collect state sales taxes either in the state where the dealership is located or the state where you live.
Can the buyer evade his home state sales tax if no registration is required? Maybe, but the obligation remains, same as for buying an item from out-of-state through a mail-order catalog.
You DO pay your state sales tax on items you buy from a catalog, don't you?
Here is another example. I live in Vancouver, WA which is across the river from Portland, Oregon. Oregon has no sales tax, Washington does. You could purchase your quad in Oregon & save the 7.7% sales tax that Washington collects.
The down side is you could only ride your quad on private land. To ride on federal or state land you must get an ORV stick & register your quad with the state. To obtain the ORV tag, your pay $20 or so, HOWEVER if you purchased the quad outside Washinton, then you must pay the sales tax then to get your ORV sticker.
No matter which way you go, they will get you somehow, the taxman that is.........
Also if your a property/farm owner you are tax exempt that's what we've done with our 4-wheelers. They will basically let you write the tax off as a farm expense and you dont have to pay it. But again you have the catch (if im not mistaken) you cant ride on public grounds. Which is no biggy for me there's no where to ride in Iowa anyways! Thats what I did with my Warrior I just sold and what im going to do with my Raptor! Yeah if the government asks we just have really fast cows that we need to chase down.....riiiiiiiight
i live in mass and im buying in new hampshire..saves me 5%..if i want to register in mass i have to pay it but i dont register in mass..why bother for 40.00 you get nothing,no legal trails near me..in new hampshire they have nice trails that they take care of so i register it there..nice to ride legal and not have to look over your shoulder
Just picked up a new y2k Kodiak in New Hampshire. I will however have to pay sales tax in Mass when (and if) I decide to register. I had a difficult time finding a tan one in Mass but had no problem up north. The dealer put on a Warn Winch after agreeing on the price over the phone. It was ready two hours later when I got there to pick it up. Winch installation was very nice and the machine was ready to go at 5% less than I would've paid in Mass. Dealer is Amherst Motorsports in Milford, NH. I can't wait to get out this morning and ride!!!
I ride and maintain residence in minnesota. In north dakota, you pay sales tax when you register your atv, not at the dealership. In minnesota, you pay sales tax at the dealership, not when you register. Needless to say, one may purchase an atv in north dakota, then register in minnesota, all without paying sales tax. Now, as far as actually partaking in such an activity, I know no one that has actually "worked" that loophole... 'tug on shirt collar.'