The sales tax on a used Kawasaki Mule depends on the state in which the ATV sells; for example, in Alabama, the sales tax is 4 percent of the item’s purchase price, as of 2015. Alaska, Delaware, Montana and Oregon charge no sales tax.
To determine the local sales tax rate, buyers can consult with their state’s Department of Revenue or equivalent taxing authority. The Federation of Tax Authorities also maintains a database of sales tax rates. The database is searchable by state or by service, and choosing a state from the drop-down menu on the organization’s website pulls up a list of taxable products and services, along with the basic sales tax rate for the state.
Some states such as Utah and Iowa offer a sales tax exemption for ATVs purchased by agricultural producers. To qualify for the sale and use tax exemption in Utah, agriculture purchasers must use the property primarily and directly in farming operations. People claiming the exemption must be engaged in farming operations and deduct farm-related expenses under the Internal Revenue Code. In Iowa, the ATV must be used 50 percent or more of the time for agricultural purposes in order to qualify for the sales tax exemption.