Tax exemption

[slappy]

Can people with businesses or churches or schools claim this on vehicle lettering?

 

[J Hill Designs]

if they are tax exempt they can

but I only see it when people buy for resale

they can certainly claim it as a business expense on tax forms etc

 

[Solventinkjet]

They certainly can but to protect yourself, require them to provide a copy of their tax exemption certificate. Getting just their tax exempt number will not cut it in an audit. They usually need to see a copy of the actual certificate.

 

[Billct2]

Yes, have them fill out the form for your state and keep a folder of them in case you get audited

 

[ddarlak]

it's on you to know your state's tax code and for them to provide the paperwork. If they don't want to pay the tax, make them do the paperwork.

 

[player]

When people wanted to do cash no tax deals, I would say sure, but still pay the taxes. Of course I included the taxes in their special tax free cash price.

 

[w2csa]

My understanding is if a business is going to resale the lettering then they will charge sales tax thus you would sell to them tax exempt (with the proper paperwork).
Also, if it is a charitable organization they can be tax exempt as well.
I would question if someone had a tax number, wanted to buy tax exempt and was not going to resale , for example apply to their own business vehicle .

 

[fresh]

You can be a tax-exempt organization, which means you do not have to pay sales tax on the items you buy. Examples of this are government entities, certain non-profits (some are required to pay), most churches, schools, etc.

Or you can be a reseller. For example, if you are purchasing printed banners from a wholesaler, you do not need to pay sales tax, since you will be collecting sales tax from your client.

In both of these cases, there should be a state tax exempt form that you should require from your customer before offering them goods tax free. If I don't have the paperwork, I ALWAYS include tax, even if I know they are tax-exempt. Seeing it on a bill often gets them to bring me the form. I have a LOT of exempt clients, and I worry about getting audited. This way, I know I won't be screwed in the long run.

Hope this helps.

 

[fresh]

I would question if someone had a tax number, wanted to buy tax exempt and was not going to resale , for example apply to their own business vehicle .

I think they would get in trouble. I use my resale cert all the time, I know at Home Depot it says something to the effect that tax is due if I'm not reselling the item. I would assume its more about the purchaser in that case, not the seller.

The few times someone has come in claiming they have a tax id, I let them know its only for resale, and they are not reselling a banner with their name on it, so they must pay the tax due.

 

[stonetree]

In NC we charge tax to the tax exempt like anyone else, they file a paper with the state to get it back. I offer the same to those who can't find their tax number or forgot it, bring it in and I will refund it.

 

[31legen]

Tax exempt

In another business i operate, I deal with schools and churches quite often. I contacted the state commisioner of revenue here in Virginia to find whether I was to charge sales tax and I was informed that if the certificate does not specifically say what they are exempt from, they are liable to pay the tax as anyone else.

 

[BIG EASY DOES IT]

I think were talking about two different things.

There is a difference between claiming tax exempt for resale purposes and between organizations that are tax exempt.

A business can't get their trucks lettered and claim tax exempt. They are not reselling, they are using this for themselves. Takes a Resale License

A tax exempt organization like a church or school could though, but it must be stated on their paperwork what they are exempt from. Takes a 501c3 License from IRS