Lightning Bug Posted September 28, 2006 Share Posted September 28, 2006 I decided to clean out some FOs and put them on the classifieds. Now if you sell these, how do you do it with the state use tax. I pay this when I buy the product, but also pay sales tax on candle sales. So where does this type of sale fit in with your state? TIA. Beth Quote Link to comment Share on other sites More sharing options...
MichelleOH Posted September 28, 2006 Share Posted September 28, 2006 I don't charge tax Quote Link to comment Share on other sites More sharing options...
KristinesShower Posted September 28, 2006 Share Posted September 28, 2006 You are paying taxes on your FO's? Don't you have a tax id number? Quote Link to comment Share on other sites More sharing options...
RobinInOR Posted September 28, 2006 Share Posted September 28, 2006 I assume she means the other way around - she's selling FOs and not charging sales tax.It's up to the person buying to declare the amount of their purchase to their state's use tax if any. Quote Link to comment Share on other sites More sharing options...
Lightning Bug Posted September 28, 2006 Author Share Posted September 28, 2006 Hi. I know I'm not always clear...just ask the hubby! LOL. I do have a tax number, but I understood when you buy your wax and scents etc. in our state of Idaho, that they were taxed...so if you buy online, you must declare them and pay use tax on them even if you are using them to make the candles and sell the finished product which you also charge sales tax and pay the state. So, I purchased some scents, paid the use tax, decided to resell them. Now say I have $XXX (I wish) but since it is a sale, do I need to pay on this as sales tax? I know, double taxing. Maybe I am wrong and when you make something you don't need to pay the use tax. Will look into this as I am just getting started and trying to do it all right but that would be really nice to not have to pay it as it does seem like double taxing sort of. Not sure this is any clearer. Thanks for the input. Beth Quote Link to comment Share on other sites More sharing options...
KristinesShower Posted September 28, 2006 Share Posted September 28, 2006 You're getting taxed on both ends ackkkk!When I buy ingredients, containers, etc for my products (those which go into the manufacture of the product), I do not pay taxes on these items. However, when I sell to customers - I add IL sales tax (but only if the customer is in Illinois). Buying from a different state? No tax and I don't have to pay it either.It must be different for each state? If so, I am a very lucky person to live in Illinois! lol Quote Link to comment Share on other sites More sharing options...
nantes Posted September 28, 2006 Share Posted September 28, 2006 Ok, correct me if I am wrong, but there is a big difference between buying a new product and selling something in the classys. If I sell something used, regardless whether I paid taxes on it when I bought it, I can't charge sales tax on it when I sell it. Used, selling extra stock, same thing. If you are selling supplies to people on a table at a show that puts you in the position of being a supplier and you might have to charge sales tax (depends on your state, I am in wonderful taxless Montana). If you sell through the classys, then you are cleaning out the back room and - voila- no tax. Even in a State with sales tax, if you buy something through the classy section of the paper, they don't charge you sales tax. You don't have to pay taxes for stuff at garage sales or on ebay. If you want to recoup some of what you had to pay for sales tax when you bought it, then you have to put your price to reflect that. Quote Link to comment Share on other sites More sharing options...
Kymber Posted September 28, 2006 Share Posted September 28, 2006 You should only be paying Use Tax on the products you are actually using for personal use. Not on all the products you are buying as supplies and then turning around and reselling them in a finished product. Wow that is major taxage going on..... Quote Link to comment Share on other sites More sharing options...
Glowlite Posted September 28, 2006 Share Posted September 28, 2006 Use tax is paid on items that you buy for your business and then use for your personal use or really anything that you aren't going to resell. So say you buy a desk and don't pay taxes on it when you purchase it. You're not going to resell the desk, your using it for your business. Your state will require you to pay a use tax on it. Quote Link to comment Share on other sites More sharing options...
Lightning Bug Posted September 28, 2006 Author Share Posted September 28, 2006 So the "ingredients" and containers shouldn't require the use tax when purchased? I probably need to go to a CPA and find out about all this. I had read in a tax paper from the state on businesses and in there it sounded like I would have to pay upon purchase. As to the ads, I wasn't planning on adding a sales taxto the amount, just wondered if I would need to pay it out of that. Somehow I need to show this money as going back into the business and not then as a sale that would require a tax to be paid. Hopefully, I've been sending money when none is due and won't have to do so in the future! Any one from Idaho out there who can tell me about our state's taxes? Thanks again. Beth Quote Link to comment Share on other sites More sharing options...
skg Posted September 28, 2006 Share Posted September 28, 2006 The remote sales tax (use tax) applies to purchases when sales tax is not charged. Use tax is due on the total price (including shipping and handling charges) of all taxable items brought into your state, purchases by mail from out-of-state retailers, and purchases made on the Internet. It applies to purchases made in foreign countries as well as other states. Use tax can be paid on your states Income Tax Return. Its a companion tax to sales tax. You need to either find out for yourself what your state requires or consult a CPA. hth Sandy Quote Link to comment Share on other sites More sharing options...
CareBear Posted September 28, 2006 Share Posted September 28, 2006 But either way, it's up to you what to charge in the classifieds. Just you might not get many takers if the price does include the tax since many don't pay it themselves.BTW: I DO pay tax too, cause this is just a silly little hobby for me. Next year I plan to get my a$$ in gear and then the sky's the limit! Quote Link to comment Share on other sites More sharing options...
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