Tax question on purchased items?

[SummitSignsandmore]

I had a question on supplies (not resale-able product) that are bought out of state. What states sales tax rate should I be charged?

I always thought I was only supposed to pay the 6% sales tax rate that my state charges? or am I wrong? Am I suppose to be charge whatever the tax rate is of the state I purchase the supplies from?

 

[J Hill Designs]

what do you tax end users who live in a different state when you sell them a sign?

 

[royster13]

Did you cross a state line to buy them?.....Or were they shipped in?....

 

[Dennis422]

NONE.

Right now, you only need to pay sales tax for the items that you purchase in your state.
Out-of-state purchases are not taxable (Uncle Sam is working hard to change that).

 

[SummitSignsandmore]

The items I speak of would be shipped in.

I mostly deal with local buyers, only on a few occasion have I done sales out of my state and what I charged the "end users" (out of state) is my states sales tax rate.

Some supplies that I buy and have shipped in I don't even get charged a tax. Therefore I pay my state a "use tax" on these items. of my states 6%.

 

[royster13]

NONE.

Right now, you only need to pay sales tax for the items that you purchase in your state.
Out-of-state purchases are not taxable (Uncle Sam is working hard to change that).

Are there not some states that have reciprocal agreements with other states?....

 

[WildWestDesigns]

Are there not some states that have reciprocal agreements with other states?....

Some states you will have to pay tax on items shipped from outside states. Not all mind you (not yet), but some do have to pay tax unless you are tax exempt.

There are some reciprocity agreements between states as well. I know TX and TN do for some things.

 

[tattoo.dan]

NONE.

Right now, you only need to pay sales tax for the items that you purchase in your state.
Out-of-state purchases are not taxable (Uncle Sam is working hard to change that).

are you sure about this? when I pay Illinois sales tax there is an option for supplies or materials purchased out of state....???

 

[FireSprint.com]

http://www.portal.state.pa.us/portal/server.pt?open=512&objID=14489&mode=2

You must pay use tax for items that are shipped to you and you pay no sales tax. This is an Unconstitutional state issue and has nothing to do with the Fed as of right now. Talk to your accountant.

Here in Nebraska it's the exact same way. There are some "loopholes" however. For example in Nebraska, we don't have to pay use tax on "Manufacturing Equipment" we purchase out of state.

 

[SummitSignsandmore]

Here is an example...

My states sales tax is 6%

Harbor Sales is located in MD and on the invoices I get charged PA sales tax. (PA sales tax 6%) It says so on the invoice.

BUT.. When I purchase from Fellers I am charged 8%, more than my states required sales tax.

My question is, am I being over charged from Fellers on sales tax? MO can charge sales tax for 4.5% all the way up to 9%, but am I supposed to be liable to pay MO sales tax rates?

 

[CES020]

Why do you pay sales tax on items for resale?

You should be exempt from taxes on materials that go into making a taxable end product, correct?

 

[WildWestDesigns]

Why do you pay sales tax on items for resale?

His question was on non resale able items:

I had a question on supplies (not resale-able product) that are bought out of state. What states sales tax rate should I be charged?

 

[SummitSignsandmore]

Yes, thank you WildWest non-resale-able items is what I am referring to. I understand "resale".

Am I being charged too much sales tax from my Fellers orders? I believe I am only supposed to be charged my states 6% rate.

Here is an example again... (NON-RESALE-ABLE ITEMS, Supplies)

My states sales tax is 6%

Harbor Sales is located in MD and on the invoices I get charged PA sales tax. (PA sales tax 6%) It says so on the invoice.

BUT.. When I purchase from Fellers I am charged 8%, more than my states required sales tax.

Shouldn't I be entitle to some sort of credit?.. My state on requires me to pay a 6% sales tax

 

[john1]

Fellers shouldn't charge anyone sales tax if you submitted your business license copy and all to them. I at first was getting charged tax until i brought up i had a license and they changed it.

 

[WildWestDesigns]

Yes non-resale-able items is what I am referring to. I understand "resale".

Am I being charged too much sales tax from my Fellers orders? I believe I am only supposed to be charged my states 6% rate.

Here is an example again... (NON-RESALE-ABLE ITEMS, Supplies)

My states sales tax is 6%

Harbor Sales is located in MD and on the invoices I get charged PA sales tax. (PA sales tax 6%) It says so on the invoice.

BUT.. When I purchase from Fellers I am charged 8%, more than my states required sales tax.

Shouldn't I be entitle to some sort of credit?.. My state on requires me to pay a 6% sales tax

You would need to look at the laws. I don't order from Fellers, so I don't know what their tax rate is for the facility that your order is coming from. Tax rate here is 9.25%.

However, I would argue that it's the tax rate of the state that you bought it from. No different then if you had traveled to that state and bought it from there.

Now, there might be other laws on the books that would give you less tax rate or the same as your state, but you would need to take a look at the laws to find out.

Edit: John1 is right. If you submitted your licenses that you are tax exempt they shouldn't charge it to you. I doubt that they would apply that to previous purchases though.

 

[signage]

Summit you need to contact PA department of Revenue and let them know you are being over charged. They should take care of it and alow you to deduct the amount over paid.

 

[Dennis422]

Here is an example...

My states sales tax is 6%

Harbor Sales is located in MD and on the invoices I get charged PA sales tax. (PA sales tax 6%) It says so on the invoice.

BUT.. When I purchase from Fellers I am charged 8%, more than my states required sales tax.

My question is, am I being over charged from Fellers on sales tax? MO can charge sales tax for 4.5% all the way up to 9%, but am I supposed to be liable to pay MO sales tax rates?

Ohio law is, unless the company has a physical presence in your state (warehouse for example) they should not charge you the sales tax.
I believe that every state should work like that.

Fellers have many distributing locations in I think every state, so they should charge you your local sales tax (PA). But I believe if you send them a Tax Exempt form with your info, they should not charge you the sales tax.
You have to have a Vendors licence to be Tax Exempt (At least in Ohio)

 

[WildWestDesigns]

Ohio law is, unless the company has a physical presence in your state (warehouse for example) they should not charge you the sales tax.
I believe that every state should work like that.

Fellers have many distributing locations in I think every state, so they should charge you your local sales tax (PA). But I believe if you send them a Tax Exempt form with your info, they should not charge you the sales tax.
You have to have a Vendors licence to be Tax Exempt (At least in Ohio)

As you point that, that's up to state law. Not all are the same.

 

[signswi]

Ask your CPA, not the internet.

 

[signage]

The new laws are requiring internet sales to start collecting and sending the taxes to the states were item is shipped. As stated Fellers does have distribution centers in PA which requires them to collect sales tax to sales within the state. The problem is PA has some areas that charge an additional % allowed by the state. So if your zip code or address shows you are in one of these areas then they are required to charge you that tax rate.