When I bought a dozer a couple of months ago I had to pay 7% sales tax on a used dozer. It was unclear at the time of purchase what I should pay, the old tax laws in Mississippi classify a dozer as a crawler tractor, I told the tax commission that I should only pay 1% on the dozer and 7% on the blade, since I am a farmer and using it to clear my own land. I had the bill of sale made out to show the blade and dozer billed seperate. What have some of you run across in this tax system mess. Now I am thinking the state owes me around $3000, which I would have a better chance of getting the money my brother in law owes me than that money.
Here in Kentucky if a person owns 12 acres of land or more the land can be declared a "farm". Any equipment such as a dozer, tractor, 4wheeler, parts etc. purchased for use on that farm would be tax exempt. But again, that is here in Ky.
TerryJ I think I am going to move to Kentucky. I bet yall don't have to pay sales tax on used cars and trucks either. I contacted the main office in Jackson today and they checking on it.
As long as you can prove your just using the dozer on your own property then you have a leg to stand on,but if you take the farm exemption then you better not get caught doing custom dozerwork for others.or you will be paying taxes,plus penalty,and interest and anything else they can think of. You might be able to get some of the sale tax back as in when you make out your state and federal income taxes as a deduction.I'm sure you will have to have all the paperwork.You need to talk to your tax accountet.Again better not be doing the customer work thing.There is always someone that will tell on you!!!! Good luck,after the fact:usa
Dozer Tax In Nebraska if you do it by the "book" you have to pay sales tax on the Crawler Dozer even if it is just for farm use. Some people try to get away with calling a dozer a "piece of farm equipment" But that is not what the state thinks. Some of you might not agree, but why should a farmer not have to pay sales tax??? Farming is a business, just the same is if you are a contractor that is your business. I know several farmers that have bought pull scrapers and dozers for their bigger tractors and do dirt work on the side. It is Not fair that I have to pay sales tax on equipment, commercial insurance and everything else and they don't.
You said it, I feel the same way. There are a lot of farmers that are in the excavation business in my area, and just as you say they don't pay sales tax on equipment (or anything else for that matter), use farm plates on their trucks (far less expensive than commerical), run red fuel in trucks, and most work so cheap that they don't cover the cost of the equipment, say it's a "farm expense". Makes my life a lot more difficult when farmers that used to be my customers are now my competition, and they don't play by the same rules. :Banghead