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Missouri Sales Tax?

Discussion in 'Beginners' started by Amanda M., Apr 10, 2021.

  1. Yes

    0 vote(s)
  2. No

    0 vote(s)
  1. Amanda M.

    Amanda M. New Member

    I have completed my first two mounts for customers but I’m not sure if I should charge sales tax or not. I have found that some people charge it and some people don’t. And I don’t understand the whole “use tax” on supplies thing and how to go about calculating it and paying it...it seems extremely complicated. Do I have a choice between either paying use tax or charging and paying sales tax, or is there only one correct way it is supposed to be done? I’m pretty lost so any advice from experienced Missourian taxidermists would be greatly appreciated!! Thanks!
  2. damon engel

    damon engel New Member

    I know this won't answer your question, but you should probably contact your state dept of revenue. Or see if there is a small business organization that can help you through the process. Here in WY, I had to have a state business license before I could mount anything for someone I received any form of compensation from. This set me up to collect sales tax, and to be liable for paying collected taxes to the state Dept of Revenue every quarter. The small business department here helped me immensely in setting up what I needed and advising me on what I don't need, and they offer free seminars as well for continued training, if I am interested.
    Amanda M. and pir^2h like this.

  3. joeym

    joeym Old Murphey

    "Use Tax" is a tax levied on materials that you purchase from other states. Any "in-state" materials you buy for you business in MO will be taxed at the time of the sale. "Use Tax" is basically sales tax on your supplies, and is not charged directly to customers when you bill something out. In my state, MS, it is calculated and paid in each quarter. You absorb it into your overhead, and it is part of your price structure. Word of warning....once you apply for sales tax and use tax permits, you must file them whether you have any sales or not. As a beginner, doing minimal work, "fly under the radar" as long as possible. Once you start sending money to the state, they will wear you down with monthly and quarterly filings. Sales tax varies from state-to-state. You calculate the percentage and charge it at each transaction. Monthly or quarterly, you file a report and send the funds to your state tax commission. There is no sales tax on taxidermy in my state. As stated earlier, don't be afraid to contact your state tax commission and ask questions. You accountant might also be a good source of information on this subject.
    Amanda M. and pir^2h like this.
  4. Frank E. Kotula

    Frank E. Kotula master, judge, instructor

    Get yourself an account and it’s better to get yourself an EIN # With this you give your taxidermy company and they won’t charge you tax as that item is a taxable item and the state will collect the tax from your sale. This way it’s not double taxation on you. Then ( I pay quarterly) taxes on my sales from client pickups . This is how I do it in PA . Hopefully this will help you
    Amanda M. likes this.
  5. pir^2h

    pir^2h Retrievers give you the bird

    Tennessee charges a use tax. You only pay tax on the material, not on the labor for the taxidermy work itself. I had an electronics repair show and had to charge tax on both labor and material.

    My questions is if I am paying McKenzie tax at their end, would I need to collect Tennessee tax to submit to the state of Tennesse also. I don't do commercial work so I don't have to worry about that but I can see that being a real pain in the butt because Tennessee is going to want their tax. Now, if I claim (and can obviously prove) that it was paid how will my state handle it?

    Like stated above, contact you state department of revenue. They SHOULD be able to answer your question.
    Amanda M. likes this.
  6. socalmountainman

    socalmountainman Northwestern School of Taxidermy - Class of '73

    I do not sell retail goods in my shop. I am charging my client a non-taxable fee to mount his own trophy. I do not have to charge a state tax as this fee is considered "Labor" here in CA. I do not need a Board of Equalization Resale Permit (quarterly taxes due) as I am paying taxes on my material and is not being hung up to be resold.
    I do need a business license as I am receiving monies.
    Westcoast and Amanda M. like this.
  7. 13 point

    13 point Well-Known Member

    To answer your question, if you were a business and was collecting sales tax ( as you don’t charge it , it’s the state that charges it ) again you just collect it for them , anyway No is the answer, you would send your paperwork to McKenzie and they wouldn’t charge you your state tax . They send any money they get for sales tax to each state if no paperwork had been filed with them.
    Amanda M. and pir^2h like this.
  8. pir^2h

    pir^2h Retrievers give you the bird

    Gottcha 13 Point. That all makes sense.
  9. byrdman

    byrdman Well-Known Member

    Mn has what they call manufacterer tax so no matter if its clients bird etc you have to pay for labor you charged