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Texas Sales Tax Question??

Discussion in 'The Taxidermy Industry' started by jbnf, Jan 15, 2010.

  1. jbnf

    jbnf New Member

    I was curious if any of yall from Texas, (I don't know about other states), use the Sales and Use Tax Resale Certificate to keep from paying sales tax on stuff you resale. My accountant said that I should do this. Do any of yall do this??
  2. Bobbym1232

    Bobbym1232 New Member

    If you use that, then don't you have to pay the taxes yourself when you purchase the supplies? You should only charge tax on supplies, not labor. They are gonna make you pay tax one way or another, and I'd rather let the customer pay it than myself.

  3. michael p.

    michael p. Getting better with age :)

    Bobby, not being a know it all, but here we charge tax to the customers on labor in our industry.
  4. bulldog4949

    bulldog4949 "Mounting your Memories"

    I charge tax on every skull that leaves my shop...except for wholesale pieces!
  5. gab

    gab Active Member

    the point is,if you give your # to the guy selling you bondo,or forms or glue,anything included in the finished product,you don't have to pay sales tax on it.you also don't have to pay taxes on crating materials.this is why its important to give suppliers this number,so you don't pay sales tax on the forms sent out of Texas.If you are a meat processor,you don't have to pay taxes on the electricity used on coolers and freezers.
  6. Bobbym1232

    Bobbym1232 New Member

    I used to do that too, but I talked to someone in the tax office and they told me that if you seperate your labor and supplies then you only have to tax the supplies. Hopefully that was legit information. It saves the customer about $25 in taxes, which in turn helps in setting your prices higher.
  7. wildart

    wildart New Member

    we charge tax (.0675) on the total cost of the mount, that was the last ruling we got from the tax people. in turn, we send the state that amount every quarter. i keep a tax number on file with my suppliers( mckenzie, walmart, home depot) so that i don't have to pay tax on my supplies. tax amounts vary depending on your location. if a customer is out of state and you ship to him, you do not have to charge tax. but if he picks it up then you must charge it. bob
  8. jbnf

    jbnf New Member

    Yeah this is what I am talking about. I charge sales tax on the final product but when I am buying supplies in Texas I shouldn't be paying sales tax. i.e. I buy a euro plaque or any supplies from abc company located in Texas they shouldn't charge me sales tax because I will inturn charge my customer the tax.

    I was just wondering if any of yall do this?
  9. Becky P

    Becky P One must believe the glass is half full.

    I don't know about that Bobby. When we orginally set the business up in hubby's name they said labor was taxed. Then when we changed everything over into my name they said the same thing - taxidermy is a taxable service in Texas. All other taxidermists I know in Texas also charge tax on everything.

    Yes, the suppliers in Texas have my tax # so I don't get charged tax by them.
  10. my customer get 8.25% sales tax added on to everything
  11. Bobbi Meyer

    Bobbi Meyer I luv to ride my tricycle, I luv to ride my trike

    In Missouri the labor is non taxable. We pay use tax on supplies bought from out of state.
    Unless we are making retail sales, there is no sales tax.
  12. michael p.

    michael p. Getting better with age :)

  13. Jim D.

    Jim D. Member

    Here in Oregon, we have no sales tax, so not a issue
  14. Jerry Huffaker

    Jerry Huffaker Well-Known Member

    8.25 % on the whole invoice. If your not charging tax on your labor and you get audited in Texas, you are in for a treat :eek: