I recently bought a loader via the auction service proxibid. I knew going in there was a 7% sales premium. Here's where it gets fishy , proxibid sends invoices out , the seller or lot invoiced me directly and added 9.75% sales tax for the state of Tennessee. The proibid account doesn't show this added. I am farm exempt on this as well , the book keeper told me the state of TN was not friendly to farmers and she had to collect the tax. That threw a flag to me , the tax would be between me and the state and I actually was in KY when I bought it setting at my kitchen table. Question is do they have to collect the tax or did they get a nice little bonus on the sale?
Only a fool would keep the tax recorded on an invoice for themselves. Still, the state won't complain if they get taxes they aren't owed. I'm not a lawyer or accountant, but my guess is they're collecting the tax out of ignorance to cover their liabilities. The exception being if you're going to pick it up yourself, which could make you subject to the state's sales tax, depending on the state.
I'm sure there will be a bureaucrat available in Tennessee who could explain it to you. i think all the states have a web site that could direct you on who to call. It is my experience that auction people will always keep themselves clean and collect any taxes up front and then you have to provide proof that you don't owe it to get it refunded. I think around here there is a disclaimer in the paperwork that explains how they will handle any taxes.
I guess in the end I can take it off when I file income tax. It just seemed strange to me the way it went down. I did not transport the machine myself , hired a carrier. It was a couple thousand bucks that I had planned to spend on improvements on the machine. I would have liked the chance to fill out the forms needed for farm exemption and if they kicked on it I guess pay the tax then. I appreciate the input.
Tennessee is awfully proud of their sales taxes. I buy at auction in Tennessee on a regular basis and they always add sales tax. As for being out of state, it gets tricky. Their used to be an out of state exemption on sales tax, but it got changed due to Amazon. Living in Tennessee and I buy out of state vehicles, the selling dealer does not add sales tax, it is added when I register and title. This needs some tracking down... Howard
Pretty much the same here in Minnesota only they call it a USE tax....