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.

They are two different taxes. You must charge your state's sale tax plus the sportfishing excise tax.

Man this place is hopping!

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

Just curious,Do you apply the sales tax before or after the FET??

Freddwhy (Rapt-Ryte)

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.

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

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.

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.


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