Posted 2005-05-07 8:00 PM (#24838) Subject: Question about paying sales tax on trailer in TN
Regular
Posts: 97 Location: Middle Tennessee
Does anyone know what the latest sales tax laws are as far as paying sales tax on a trailer in Tennessee? My first trailer I bought here about 5 years ago, I did not have to pay any sales tax when I registered it because it was considered agricultural. But when I bought another one last year, they said the laws were changing and I would have to pay. I fought it and they had me sign a paper stating that it would only be used for pleasure and not business, which it was. At that time the city was really not sure about the law so I didn't have to pay the tax. I sold that trailer and bought another one this year, so I'm wondering will I have to pay the sales tax on it. If someone out there knows, please let me know. The people down at our local city hall don't know much about anything and I don't want to pay it if I can avoid it.
Posted 2005-05-07 9:03 PM (#24840 - in reply to #24838) Subject: RE: Question about paying sales tax on trailer in TN
Regular
Posts: 65 Location: TN
I purchased a horse trailer last year and another this year, no sales tax was due. Sales tax is due on utility trailers in TN even if it is for farm use
Posted 2005-05-08 8:09 PM (#24861 - in reply to #24838) Subject: RE: Question about paying sales tax on trailer in TN
Extreme Veteran
Posts: 500 Location: West TN
We purchased a new C&C living quarter trailer last year and never had to pay sales tax since it was agriculture related. At best, you sign a form stating that it is used for livestock/farm use.
Posted 2005-05-09 8:27 AM (#24876 - in reply to #24838) Subject: RE: Question about paying sales tax on trailer in TN
Elite Veteran
Posts: 787 Location: Tenn/Ala.
According to the T.C.A, "farm use" is not exempt from sales tax. The allowable exemptions are for the direct production of a marketable food crop (or something like that), and for "livestock transportation" (this part I'm sure about! :) ). As long as you are hauling livestock, the product is exempt from sales tax for personal use. But if registered to a business, whole new set of rules that include tax. And then there's the talk of removing horses from the livestock category & reclassifying them as pets......
Posted 2005-05-09 1:21 PM (#24900 - in reply to #24838) Subject: RE: Question about paying sales tax on trailer in TN
Regular
Posts: 97 Location: Middle Tennessee
Thank you all, for the bits of information. I now know when I go in to register the trailer that I need to clarify that it is for personal livestock use only. I'll let you all know what happens. It won't be for a week or so because I still have to go and pick the trailer up from Oklahoma. I've been looking for months for that perfect trailer and wouldn't you know, it's almost 800 miles away. Maybe it's not perfect, but it was as close as I could get in my price range. I tried to find one around here that would suit me, but no luck and I'm tired of missing out on trail riding season so I bit the bullet and bought this one. Thanks again and safe trailering to all.
Posted 2005-05-09 8:22 PM (#24920 - in reply to #24838) Subject: RE: Question about paying sales tax on trailer in TN
Extreme Veteran
Posts: 335 Location: Decatur, Texas
Something else you might want to check. When we picked up our trailer in Oklahoma they made us pay sales tax because we were taking ownership in that state. I could have had it delivered and saved the tax but would have had to pay $1.50 per mile. If I had taken possession on the Texas side of the Red River, I would not have had to pay the OK sales tax. Oh well, live and learn.
Posted 2005-05-09 8:40 PM (#24921 - in reply to #24920) Subject: RE: Question about paying sales tax on trailer in TN
Regular
Posts: 97 Location: Middle Tennessee
Actually I did ask about sales tax and they said there was none, so I'm not sure why you had to pay it. They told me the only fee was a $60.00 transfer fee.
Question about paying sales tax on trailer in TN
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