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Use Tax


bac

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In Florida we have to pay use tax (basically you're taxed for everything you buy outside of the state that was not taxed initially--and that was not purchased for resale)...why do I have to pay Florida taxes for something that I bought in another state...just doesn't seem right!!!

:mad:

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A lot of states are doing this to make up for all the lost sales tax on the internet. I don't have to pay when I buy supplies--because they are tax exempt--but when I buy equipment (i.e., my wax melter) I did have to pay use tax on it. It is a pain, but I paid it so if I am ever audited I have the paper trail and am not in trouble. Check the website of the Department of Revenue in your state, they usually have all the specifics there.

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In KY you have to pay sales tax on fixed assets or anything for resale. If it goes into the manufacturing of the product, you don't pay sales tax.

I personally don't see it as a big issue since states are losing alot of sales tax dollars to internet sales. There is a line on the KY state income tax form where you list items you bought on-line and didn't pay sales tax on....how many people actually pay that??

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NY wants you to do it too. On anything of any value that is taxed in NY. NYS actually used to nail people coming out of the NJ outlet stores cause NJ doesn't have tax on clothing and NY did (do they now? I forget). That led to all sorts of problems so then they were putting flyers on people's cars. Now they just resort to general threats on the NY tax forms I think.

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I claimed my melter and a couple of items that I depreciate on my taxes. Those can be tracked very easily because I needed receipts to show value, and they were all purchased out of state. I have never been audited, but I won't be caught with my pants down.

Arizona sends out questionnaires several times a year asking questions about use tax. Once they even asked me to list any vendors I purchase from out of state--however, it is optional, they cannot force you to because there isn't a law on the books requiring businesses to list their suppliers, so I just throw them away. You have to be careful though, they are worded to look like you have to do it--sneaky buggers.

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