“We had quite a few people speak with us about buying, with purchases on the last day of the show.”
– Advanced Power Inc.
“We got notable leads and a few sales.”
– Triple C/Hydra Bed
“We sold some trailers.” – Mid-Plains Equipment
“We were happy with this year’s show and the interest in our products.”
– Norwood Sales
After the show, I spoke with a few dealers who indicated they were pricing more items this winter than last. While most of the items sold were small, they did sell some new tractors and combines as well. Dealers credit these sales to the great yields and the time farmers needed to adjust to today’s economic conditions. They also mentioned that some tax accountants were recommending that farmers make some purchases.
The farm show created some optimism among the exhibitors and dealers. One media person said it seemed that exhibitors who remained positive seemed to be doing better than those who weren’t. As the saying goes, “seeing is believing.” What I observed at the farm show made me very optimistic, so that is why I’m sharing this with you. Stay positive! The year 2017 may be better than you think.
iowa SALES TAX spotlight
Q: A:
Do we charge Iowa sales tax if an Iowa dealer picks up equipment from a Missouri farmer, services it at the dealership, and delivers it back to Missouri?
Streamlined Sales Tax Project Sourcing Issues Papers states…
With services, receipt is defined as “making first use of the services.” While “use” is not defined within the sourcing provisions, use should be thought of as generally including all activities most states include in their current definitions, including the exercise of any right incidental to ownership, custody or possession. This definition applies to interstate commerce.
So, for our question above, if the dealer delivers it, Missouri state law applies. If the farmer picked it up or drove it home from the dealership, Iowa law applies. If it is an intrastate service sale, the location in which the work is performed applies. If a Polk County dealer picks up a combine from a Warren County farmer and performs service work at their dealership and delivers it back to Warren County, Polk County tax applies.
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