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Location: Winfield, Tx 75493 | I need some help or info. I have recently gone to buy a new living quarters trailer. I am now being told that I will have to pay taxes on this trailer. I have never had to pay taxes on a trailer in Texas before. Has anyone else come across this particular situation? Any comments or help would be appreciated. |
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Expert
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Location: Vermont | Originally written by cdsgreen on 2012-02-13 10:08 AM
I need some help or info. I have recently gone to buy a new living quarters trailer. I am now being told that I will have to pay taxes on this trailer. I have never had to pay taxes on a trailer in Texas before. Has anyone else come across this particular situation? Any comments or help would be appreciated.
http://aixtcp.cpa.state.tx.us/opendocs/open31/200911531l.html |
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Extreme Veteran
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Location: Penrose, Colorado | all horse-stock trailers are ag exempt in Oklahoma,here we do not have to buy license plates either all we are supposed to do is have the DL number on the trailer, you can put a private tag on for about $10 a year and all you have to do is have the trailer Mfg. and year not even a vin number as Oklahoma is a non title state on trailers. I always thought Texas was about the same.We have a private trailer tag on our LQ just to not get hasseld out of state. |
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Location: Winfield, Tx 75493 | I read your reply and I appreciate all the info. If I am reading this right, you have your customer sign state form...14-305 to exempt them from taxes. If I sign this form when I purchase this trailer, does this exempt me. That form states it is for rentals unless I have read it wrong. I have purchased LQ trailers for the past 30 years and I have never paid taxes on them. Thanks for your help. Any further input would be appreciated. |
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Extreme Veteran
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Location: Lockport, Illinois | If you use the LQ for 80% ranch use as described and prove it, then you would be tax exempt as described.This is the last sentence of the first paragraph and states if you use it for pleasure you pay taxes. Transporting horses to race tracks, rodeos, livestock shows or contests, etc. does not constitute an exempt use of the trailer even if the purchaser owns or leases a farm or ranch and is in the business of raising and selling agricultural products in the regular course of business. |
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Location: Winfield, Tx 75493 | I did read that transporting, etc. did not exempt the buyer from taxes. I was curious, so I called the comptrollers office. I received a couple of answers. One was that if it was used for show, like show cattle, that animal would eventually be slaughtered, or sold, so it could be exempt. I am even more confused at this point. |
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Location: Tx | |
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Location: Tx | This is the first year the state of Texas started charging sales tax on horse and stock trailers. You have to have the new AG/TIMBER number now on the title app to be exempt from sales tax, in the past they did not require a number, all we had to do is check the farm use exempt box, you can goggle ''Get Ready Texas'' and it will take you to the web site to apply for your AG/Timber number. In the past Horse's, donkey's, Mule's etc.. were not considered agricutural but they are now as of Sept 1 2011. I have been selling trailers in Texas for 20 years and didn't think was going to happen but it did. |
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Location: Vermont | Originally written by BLM on 2012-02-13 2:06 PM
This is the first year the state of Texas started charging sales tax on horse and stock trailers. You have to have the new AG/TIMBER number now on the title app to be exempt from sales tax, in the past they did not require a number, all we had to do is check the farm use exempt box, you can goggle ''Get Ready Texas'' and it will take you to the web site to apply for your AG/Timber number. In the past Horse's, donkey's, Mule's etc.. were not considered agricutural but they are now as of Sept 1 2011. I have been selling trailers in Texas for 20 years and didn't think was going to happen but it did.
Yes...but he was discussing a trailer with living quarters...which is a TOUGH SELL to meet the 80% use rule for the exemption...
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Location: Decatur, TX | This is an issue that is getting high visability in 2012. As a dealer we have spoke to our Texas Representative and they have clear as day said that no LIVINGQUARTERS is able to be tax exempt. They are actively pursuing this issue and have been making it very clear to the registration offices and contacting dealers and indivduals who have not been registering their livingquarters trailers with taxes being charged. If you are purchasing a trailer WITHOUT sleeping quarters you can put a tax exempt tag on the trailer with a tax exempt ID number, but if it has any sleeping quarters it is against the law to file it as a tax exempt trailer. This is becoming the norm as of this year and you start seeing everyone in Texas follow suite. There are HEFTY fines for not paying the tax on the trailers if caught. It is a much better idea and most dealers are requiring you to go ahead and register the trailer as a taxable trailer than to pay the penalty later. Please let me know if you have any questions on this as we have been studying this and have spoken directly with texas law on this matter. Thank you Krista NRS Trailers
Edited by Krista W 2012-02-13 2:49 PM
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Location: Winfield, Tx 75493 | Krista, Is this the first year everyone in Texas is required to pay sales tax on LivingQuarter trailers??? I've have always put a $5.30 farm tag and title fees. |
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Location: Decatur, TX | This law has been in effect for some time but they have been strictly reinforcing it this year and making sure everyone follows suite. To where our registration offices WILL NOT register the livingquarters trailers as a tax exempt. So it is now being reinforced to the highest degree. Just like tax on a vehicle it is going to be the "norm" now on livingquarters trailers.
Here is the link for the Motor Vehicle Tax Guidebook. It is towards the end of the book (at least 3/4 of the way) on page IV-3 it will state under Not Qualified for Exemption that on a horse trailer with sleeping quarters there is no exemption
http://www.window.state.tx.us/taxinfo/taxpubs/tx96_254.pdf
There are some grey areas to Exemption but this is pretty cut and dry and so they are enforcing this to the best of their ability starting this year.
Again it seems this is now be the norm in Texas and you will see everyone following these guidelines or facing high penalties. Please let me know if you have any other questions on this that I can assist with.
Krista
NRS Trailers
(940)393-7070 |
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Location: Winfield, Tx 75493 | Krista
I understand LIVINGQUARTERS. What do you think they (as the state of Texas) do about horse or livestock trailers that have only an AC unit or maybe the dressing room is paneled and insulated with an AC unit on it?? |
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Extreme Veteran
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Location: Valentine, NE | Don't forget about the interest deduction for a 2nd home on the interest paid (if mortgaged) from the IRS that it does quailfy for. |
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Location: Decatur, TX | That is where you get into a "grey" area. That is going to be up to the local DMV and dealer who is registering the trailer. You will for sure need a Tax Exempt Id number to go on the texas application (for any trailer now that you register as a farm exempt). But those are the shades of grey that will be hard to differientiate and will be up to the dealer selling the trailer and the registration offices policy. |
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Extreme Veteran
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Location: Minneapolis, MN | Originally written by cdsgreen on 2012-02-13 10:08 AM
I need some help or info. I have recently gone to buy a new living quarters trailer. I am now being told that I will have to pay taxes on this trailer. I have never had to pay taxes on a trailer in Texas before. Has anyone else come across this particular situation? Any comments or help would be appreciated.
How much money we talkin'?
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Location: Lockport, Illinois | Originally written by wyndancer on 2012-02-13 5:33 PM Originally written by cdsgreen on 2012-02-13 10:08 AMI need some help or info. I have recently gone to buy a new living quarters trailer. I am now being told that I will have to pay taxes on this trailer. I have never had to pay taxes on a trailer in Texas before. Has anyone else come across this particular situation? Any comments or help would be appreciated. How much money we talkin'? |
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Expert
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Location: Vermont | Originally written by cdsgreen on 2012-02-13 3:27 PM
Krista, Is this the first year everyone in Texas is required to pay sales tax on LivingQuarter trailers??? I've have always put a $5.30 farm tag and title fees.
No... read this exchange... http://aixtcp.cpa.state.tx.us/opendocs/open31/200911531l.html |
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Location: North Carolina | Originally written by BigT on 2012-02-13 3:25 PM Originally written by wyndancer on 2012-02-13 5:33 PM Originally written by cdsgreen on 2012-02-13 10:08 AMI need some help or info. I have recently gone to buy a new living quarters trailer. I am now being told that I will have to pay taxes on this trailer. I have never had to pay taxes on a trailer in Texas before. Has anyone else come across this particular situation? Any comments or help would be appreciated. How much money we talkin'? 6.25%...about $2,000 on a $30,000 trailer Whew !! The link posted by Krista shows no wiggle room. Tax guide book says sleeping area. If it has a bed like area , It's taxed. potty or no potty, A/C or not ALL is taxed. Put some stuff into the "neck over" otherwise it'll be the "sleeping area" |
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Location: Winfield, Tx 75493 | I read the response you attached. I guess my question is, who should be responsible for enforcing it. Our local TAC said as long as a farm exempt paper was signed and we had our exempt number, it could be tagged as farm use. Now I am understanding that this is not so. So who is responsible for enforcing the rules if our local TAC doesnt even know. |
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Extreme Veteran
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Location: Minneapolis, MN | Originally written by BigT on 2012-02-13 6:25 PM
Originally written by wyndancer on 2012-02-13 5:33 PM Originally written by cdsgreen on 2012-02-13 10:08 AMI need some help or info. I have recently gone to buy a new living quarters trailer. I am now being told that I will have to pay taxes on this trailer. I have never had to pay taxes on a trailer in Texas before. Has anyone else come across this particular situation? Any comments or help would be appreciated. How much money we talkin'? 6.25%...about $2,000 on a $30,000 trailer
Per year? Or one time?
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Location: Decatur, TX | It needs to be taken upon everyone involved to become educated. The DMV's, Dealers, and individuals. This enforcement has been a long time coming and will quickly beccome the rule and will be enforced by everyone involved because if they dont the penalty will be way more than it would have been to just pay the sales tax in the first place. Again if it is not a livingquarters you can just get a tax id number and be farm exempt this is just for a livingquarters trailer. You can still technically get farm tags on the trailer but will have to pay the sales tax. The registration fees are a little bit less than regular tags but it will subject you to possibly getting questioned and pulled over while travelling. I understand the headache of having to spend extra money (thousands in some cases) paying the sales tax but this will be "safer" and point blank the legal answer to do. We deal with state registration all over the country with our out of state customers and very few states can you get away with not paying sales tax on a trailer. Until recently Texas has been one of those states, but times are changing and it is going to be the norm now. There is still a transition period going on so you will have to ask your local dealer or DMV what their protocol is in this situation but per our state representative EVERYONE in the State of Texas is to abid by this regulation.
Please let me know how I can further inform.
Thank you
Krista
NRS Trailers
(940)393-7070 |
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Elite Veteran
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Location: Minnesota | I have the same question as wyndancer. Is that sales tax a one time fee? Here in MN we pay a 6.875% sales tax when we buy a trailer, truck or anything but food and clothing. That add an extra $2750 to a $40,000 (net) trailer. We also pay for license tabs annually. I just paid $39.75 to register mine for 2012. |
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Location: Decatur, TX | In Texas it is a one time 6.25% sales tax at time of purchase or at first registration. When you renew you will have some registration/license fee but will NOT have to pay the sales tax every year. |
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Extreme Veteran
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Location: Minneapolis, MN | Originally written by genebob on 2012-02-14 11:12 AM
I have the same question as wyndancer. Is that sales tax a one time fee? Here in MN we pay a 6.875% sales tax when we buy a trailer, truck or anything but food and clothing. That add an extra $2750 to a $40,000 (net) trailer. We also pay for license tabs annually. I just paid $39.75 to register mine for 2012.
Genebob,
As you well know, the People's Republic of MN collects sales tax every time that trailer is sold. Just as it does on every vehicle.
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 Extreme Veteran
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Location: high desert, CA. | The socialist republic of Kalifornia also taxes at every title change.AND sometimes will also tax for Use Tax". If your trailer is able to be registered as an RV, you also pay higher registration and taxes.The DMV in Kalifornia also has now put a "FEE" on ALL TRUCKS for "weight fee". This is to get around the fact we voted to not be taxed on our registrations and plates.( Prop in 2009),My 1997 Dodge 1/2 ton went from $79 to $247!! So they call it a "FEE", and tax the bejesus out of you. My registration for my 2005, Dodge truck went from $130 to over $500 this year, as the "Fee" has almost tripled. |
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Regular
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Location: Massachusetts | I would move the hell out of dodge Fast!!!!!!!!!!!!!!! |
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Extreme Veteran
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Location: Claxton, Ga. | Wow, we have had to pay taxes on a new vehicles and trailers for a while. If you buy it from a person used, no sales tax. Welcome to the real world of death and taxes. |
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Veteran
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Location: Richmond, Ky | unless you REALLY like living there, I agree get the Hati out, and find somewhere more reasonable, that my friend is over and beyond on the fees. I pay way less in Ky for a 2003 3/4 dodge in Ky than you do for the 1997. |
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Location: Grapeland, Texas | How will this effect us with trailers with farm tags on them now? I have had this trailer for 6 years. I was using it at one time for farm use when I was raising QH but no longer do that. |
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Extreme Veteran
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Location: high desert, CA. | 1
Yeah, we would LOVE to move out of Kalifornia, and go to Arizona or Utah.
BUT, then reality hits us, and our property with a 190K mortgage, is now worth about 110k since the crash. Soooo, we have the option of waiting until my Wife can retire, ( I already have had to retire for health), or just walking away and loosing everything.
Since my wife is in Law Enforcement, we do have to keep our options open for employment also.
( If your personal credit is really rotten, and you have a bankruptsy or forclosure, most cities and counties won't hire you, as they figure you are a bad risk all around.) |
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taxes on living quarter trailers
