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Sales tax ?
Posted by:
John-Michael Dunaway
(---.dnb.com)
Date: March 11, 2005 04:10PM
I know it is probobly covered in the articles section but I am a bit slow and want to make sure I am doing this correctly. When charging the tax on a rod do I charge both sale tax and spertman tax or just one or the other. It comes out to like 14% in texas and just want to make sure before I charge the customer. Re: Sales tax ?
Posted by:
James Reid
(---.int.bellsouth.net)
Date: March 11, 2005 04:26PM
They are two different taxes. You must charge your state's sale tax plus the sportfishing excise tax.
Man this place is hopping! Re: Sales tax ?
Posted by:
John-Michael Dunaway
(---.dnb.com)
Date: March 11, 2005 04:29PM
Thanks for the quick response better safe than sorry. Hate to have to fork up the dough out of pocker come april.
Thanks, John-Michael Re: Sales tax ?
Posted by:
Fred Yarmolowicz
(---.brick101.nj.comcast.net)
Date: March 11, 2005 07:08PM
Just curious,Do you apply the sales tax before or after the FET?? Freddwhy (Rapt-Ryte) Re: Sales tax ?
Posted by:
Milton (Hank) Aldridge
(---.maine.res.rr.com)
Date: March 11, 2005 09:47PM
You charge both taxes on the gross sale amount. In other words you do not charge sales tax with the FET already add in and vis-virsa.
example. Sale a rod for $100.00 ( Maine has a 5% sales tax) I would charge $5.00 for state tax and $10.00 for FET for a total of $115.00.. Of coarse that's not coubting the FET 60% factor if applied to that sale. Hank On The Rocks Fishing Wells, ME. Edited 1 time(s). Last edit at 03/11/2005 09:52PM by Milton (Hank) Aldridge. Re: Sales tax ?
Posted by:
Bruce Young
(---.proxy.aol.com)
Date: March 12, 2005 03:07PM
Actually if you built the rod the excise tax is based on the Constructive rod price. The constuctive rod price is 60% of the sale price. Now multiply that figure times 10%. Using your example of the $100 rod . Take $60 dollars times 10% or $6 dollars. Combine your rod price plus the excise tax equalling $106 dollars. Add your local sales tax based on the $100 rod price and your finished.
Good Luck, Bruce Young Landing Gear Re: Sales tax ?
Posted by:
Milton (Hank) Aldridge
(---.maine.res.rr.com)
Date: March 12, 2005 06:51PM
Bruce,
Maybe Tom K can let us know on this one. The way I understand the law is - Example - My lures I manufacture I sell 99% wholesale and have to pay 10% FET on the sale price. The 60% rule comes in when I sell a lure at retail then the 60% rule comes into affect. The whey they seperate wholesale & retail is when I sell to someone with a valid sellers certificate I do not charge state On Maine sales tax. Without sellers certificate I have to charge State tax. Like I said maybe TK can help here. Hank On The Rocks Fishing Wells, ME. Re: Sales tax ?
Posted by:
Anonymous User
(Moderator)
Date: March 14, 2005 10:43AM
You're correct. On sales to the end user, the tax is based on a "constructive sales price" which is 60% of the total. The tax is then 10% of that amount.
If you sell to a reseller, you charge 10% tax on the full selling price. State sales tax is charged independently of any other tax. ................ Sorry, only registered users may post in this forum.
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