recommendation for bulk stranded cable

[altrenda]

Upgrading a workstation would be a type of fabrication too.. no ?

depends what you mean by "upgrading". The rule says

"Nontaxable types of labor repair
Tax generally does not apply to your itemized charges for repair labor. Repair labor is work performed on a product to repair or restore it to its intended use. Examples include:

Replacing a broken water pump on a customer’s used car
Replacing a hard drive in a used computer
Restoring a damaged painting
Altering a customer’s used suit to fit better"

Adding memory or a hard drive would be no, but refurbishing and reselling a computer would be yes.

 

[Pants]

Alright. THANKS ALL

I think I'll be ok now. I'm going to do good. I know it!

 

[Pants]

I think I (might) have this.. So to sum up..

1. A reseller permit is so you are allowed to collect taxes from the client you are selling to

2. Stuff purchased tax free can be resold (whether it's marked up or not) with client taxed on item instead of me.

3. Used parts (whether they are purchased or taken out of my parts bin) are use-taxable.

Ok red highlighted test is not correct. I was greatly mistaken about what use-tax is. For some reason I was associating it with used stuff. lol
It's just a tax for using something in your state that's bought from another state.

Also learned that anything bought retail with sales tax paid (whether it's used or not) can still be taxed IF sold to someone else, according to the California Board Of Equalization who I just talked to on the phone. "USED ITEMS ARE TAXABLE" if sold to another. So if I bought something through retail and then resold it, I would collect sales tax on it.

 

[nlinecomputers]

Yes but why do that when it is easy to setup tax exempt status with vendors and even local stores? There is ZERO reason to do that if you are serious business.

 

[Pants]

I agree with you. I'm just considering the possibility, in case it ever came to that.

Also just wanted to mention it to redeem myself.

 

[Mercenary Roadie]

There are times that you are forced to pay sales tax on something that you plan to resell.

When this happens you treat it like you do any other item you're selling and charge tax on it. When your sales tax return is due, you just take a credit for the sale tax you paid on that item (there is a spot on the form for it).

 

[Mercenary Roadie]

depends what you mean by "upgrading". The rule says

"Nontaxable types of labor repair
Tax generally does not apply to your itemized charges for repair labor. Repair labor is work performed on a product to repair or restore it to its intended use. Examples include:

Replacing a broken water pump on a customer’s used car
Replacing a hard drive in a used computer
Restoring a damaged painting
Altering a customer’s used suit to fit better"

Adding memory or a hard drive would be no, but refurbishing and reselling a computer would be yes.

California does not tax labor.

 

[Mercenary Roadie]

It's called Tax Fraud. If you pay sales tax on a item and then mark it up you are required to collect the full tax on it. Because the customer by law is required to know what tax they are paying. If you only charge the difference in your mark up you are certain to land an audit. And if you routinely mark up and apply full tax on the item then that item has been tax twice for one RETAIL SALE. You are not allowed to mark up after tax you are only allowed to collect tax on the retail sale. If you tax twice you'll get fined. That is the law in Texas and I would expect to be similar in California.

As I said in a previous post.

Texas sales tax is not the same as California sales tax. If you're in business and you sell something you must collect sales tax. It doesn't matter if you paid sales tax on it when you bought it.

 

[nlinecomputers]

There are times that you are forced to pay sales tax on something that you plan to resell.

When this happens you treat it like you do any other item you're selling and charge tax on it. When your sales tax return is due, you just take a credit for the sale tax you paid on that item (there is a spot on the form for it).

And if you do that too much you get audited in most states. Hence my warning. Pants made is sound like that he was going to do that as his SOP.

 

[Mercenary Roadie]

And if you do that too much you get audited in most states. Hence my warning. Pants made is sound like that he was going to do that as his SOP.

Nope, not here. There are several places that won't take a resale certificate so you have to pay sales tax on your purchases. The state here understands that not all businesses can take a Resale Certificate and that's why they have the the box for sales tax paid on the Sale Tax Return form. In the end it's a wash as the same amount of sales tax is being paid, you just end up not having to send in a big payment.

As a small Contractor, I get better prices at Home Depot than I due at the large Electrical Wholesalers. Problem is Home Depot will only accept a Resale Certificates if you have an Open Commercial Line of Credit which I don't have. End result is I have to pay sales tax on my purchases. If the items I buy end up part of a taxable transaction, I then charge the buyer sales tax and claim the taxes I paid on my yearly sales tax return form.

What will get you in trouble is buying stuff using your Resell Permit and then paying the sales tax when you file your sale tax return.

 

[nlinecomputers]

In Texas you are required by law to take a reseller certificate. They can't refuse and you can report them to the Texas Comptroller's office.

 

[colonydata]

As much of a headache as the Taxes and Regulatory hoops to jump through in Georgia drives me insane. Reading threads like this, I see why Georgia is consistently rated as one of the best states in the nation to do business in. Only Tangible goods are subject to sales and use taxes in the State of Georgia.

Software as long as it's load and leave (electronically delivered or via a thumb drive or cd that I do not leave with them) is not taxable.

 

[altrenda]

California does not tax labor.

Ah, but it does.
https://www.boe.ca.gov/formspubs/pub108/
They tax labor used for 'fabricating" like building a new computer.
"Examples of fabrication labor include:

Manufacturing a new piece of machinery.
Sizing and engraving a new ring you are selling to a customer.
Altering a customer’s cutting die so that it will produce a new and different item.
Cutting metal or lumber provided by a customer.
Assembling a customer’s new barbecue or new bicycle that came in parts.
Altering a new suit to better fit the buyer

They also tax some service charges and Trip Fees.

 

[altrenda]

As much of a headache as the Taxes and Regulatory hoops to jump through in Georgia drives me insane. Reading threads like this, I see why Georgia is consistently rated as one of the best states in the nation to do business in. Only Tangible goods are subject to sales and use taxes in the State of Georgia.

Software as long as it's load and leave (electronically delivered or via a thumb drive or cd that I do not leave with them) is not taxable.

Georgia is similar to California in how it taxes labor. ( I was bored and did a 1 minute search on Georgia taxes to see how bad we in Cali are)
https://etax.dor.ga.gov/taxguide/A_Tax_Guide_for_Georgia_Citizens_2011_Edition_Final_8-23-11.pdf
Q. Are labor charges exempt?
S. Repair and installation labor are exempt when separately stated on the seller’s invoice. If not separately stated, labor charges are taxable. Fabrication labor is taxable when provided as part of a retail sale.

Q. Are repair charges taxable?
A. Materials used in a repair are subject to tax. Installation or repair labor is not subject to the tax when separately stated on the invoice.

 

[colonydata]

Georgia is similar to California in how it taxes labor. ( I was bored and did a 1 minute search on Georgia taxes to see how bad we in Cali are)
https://etax.dor.ga.gov/taxguide/A_Tax_Guide_for_Georgia_Citizens_2011_Edition_Final_8-23-11.pdf
Q. Are labor charges exempt?
S. Repair and installation labor are exempt when separately stated on the seller’s invoice. If not separately stated, labor charges are taxable. Fabrication labor is taxable when provided as part of a retail sale.

Q. Are repair charges taxable?
A. Materials used in a repair are subject to tax. Installation or repair labor is not subject to the tax when separately stated on the invoice.

That's pretty much it in a nutshell. The fabrication bit was a question that came up when I was first starting up and considered doing custom built computers.

 

[Mercenary Roadie]

Learn something new every day.

Labour that is not taxable

https://www.boe.ca.gov/formspubs/pub108/

Labor or service charges related to a nontaxable sale are not taxable
Tax does not apply to labor or services related to nontaxable sales, including sales for resale. For example, if you design and build a custom computer for a retailer who will sell it in a computer store, none of your charges are taxable—provided you obtain a timely and properly completed resale certificate from the retailer.

Nontaxable types of labor repair
Tax generally does not apply to your itemized charges for repair labor. Repair labor is work performed on a product to repair or restore it to its intended use. Examples include:

• Replacing a broken water pump on a customer’s used car
• Replacing a hard drive in a used computer
• Restoring a damaged painting
• Altering a customer’s used suit to fit better

Tax usually applies to charges for parts you supply in a repair job if the retail value of the parts is more than 10 percent of your total charges or if you charge separately for the parts.

Installation. Sales tax generally does not apply to charges for installation labor. For example, tax would not apply to your itemized charges for installing a car stereo in a used car. Please note that it can be difficult to tell the difference between nontaxable installation and taxable fabrication on site.