Sales Tax in Massachusetts

[Bassbum2]

Do you have to charge sales tax in Massachusetts if you are only cutting and applying to an existing sign or a vehicle or any other substrate a customer would supply? I would think if I supply the substrate or build a sign from my materials I would charge sales tax. I guess my real question is when do I and when don't I charge sales tax?

Thank you for any replies
Russell

 

[WVB]

Anytime you sell something retail you charge tax... Or anytime a receipt is required you charge tax

 

[Fred Weiss]

It will vary from state to state so you really need advice from someone in Massachusetts or from an inquiry to the state itself. Here in Florida, for example, necessity items such as meats, produce and most food items are exempt but a candy bar is taxable as is dinner in a restaurant. Straight services are exempt until a product becomes involved. So if I have a mechanic rotate my tires, it's tax exempt as all labor. If I buy two tires and have all the tires rotated then the labor for that becomes taxable because the purchase of tires was involved.

To further complicate the matter, Florida tax laws allow a sign contractor to pay sales tax on his materials and be exempt from collecting sales tax at all.

 

[Bassbum2]

I called my CPA and he called the state who told him that I should charge tax and to look up the tax laws, when he looked up the tax laws he said it was kind of a grey area as to wether I should or shouldn't carge if I am applying to existing substrates, that is why I am asking this on the board hoping I can get answers from others in Mass.

Russell

 

[gnemmas]

When in doubt, charge. that way your are covered, customer pays them anyway.

 

[grafxxx]

are you paying taxes on the material? if not you will have to tax them for materials. and not tax them on the labor. or if your paying taxes on your materials you could just charge him labor. because your creating it or making an existing product better unless mass has a labor tax now just look up the local labor tax .

 

[onesource]

I see a cash deal

 

[Karen Souza]

Russell,
When using vinyl or any "product" you put in the customer's hand you have to charge sales tax on the whole amount (years ago you could break down labor & materials & charge only on the materials - not any more!)
Examples: Letter a vehicle w/ vinyl only - charge ST
Letter a vehicle w/ vinyl and do alittle hand striping - charge ST
Letter and or stripe a vehicle by hand w/ paint only - NO ST (apparently the trucking lobby had enough power years ago to get that exception because hand lettering or striping w/ paint was almost all labor and a small amount of "material".
Letter a sign w/ vinyl (your substrate or thiers - charge ST
Build a sign, letter w/ paint or vinyl,your substrate or theirs -charge ST
Decals or cut vinyl that the customer will self apply - charge ST

Basically, if you don't hand letter or stripe a "vehicle" you gotta charge ST.
Hope this helps....if you still have questions you can always call me 508-758-9692.
Karen
PS: Ask me how I know all this info !!!!