Quality Machine Tools is now charging Sales Tax

MrWhoopee said:
If you buy something from out of state for your use (as opposed to resell), and the vendor has not collected sales tax, you are required to report those purchases and pay the sales/use tax. When working for Fred, he had a sales tax audit. The auditor zeroed in on purchases from MSC, Rutland etc. It cost Fred $6k. Fast forward to when Jim and I opened our shop, I was very aware of this and made sure that the tax was paid. When we got audited, the guy spent 3 days and came up dry. We never got audited again.
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This is why I’m glad sales tax is collected for online sales, makes it easier for me to be compliant in my business.
 
Arizona has a use tax exemption for equipment used directly in the manufacture of products. I have an exemption certificate on file at MSC, PT Solutions and several others. Gotta be careful that the application is directly modifying the product (so my crane triggered use tax but my PM-1054 did not).
 
In a way, I am glad that on line vendors are charging sales tax. In Wisconsin, we are legally obligated to pay sales tax on all out of state purchases that we didn't pay sales in the state of purchase. Every March, I would spend the better part of a day tabulating all the previous year's purchases a figuring the tax liability for that year. That liability was added to our state income tax liability for the year. With a change in the rules, I only have to collect sale information for out of the country purchases now.

We didn't escape paying the taxes, only deferred them to the end of the year, and it made extra work for me. I like to keep our tax filings squeaky clean. The last thing that I want is a tax audit. Even worse, for the state or IRS to go back into past years and recalculate tax payment due with interest and penalties. It is also less painful to distribute the the sales tax liability over the year rather than getting hit with a lump sum in April.

Not that I like paying taxes. I particularly object to sales tax on used purchases. We paid the tax on the new item when first purchased and that should be the end of it. Unfortunately, the state will collect tax on any registered and licensed item when title transfers to a new owner. I would think that a value added tax as used in other countries would be a more fair way to raise revenue.
 
It is a huge PITA! Fortunately we do not live in an Alaska taxing jurisdiction however many vendors can get that thru their heads, or their software. Even after the Alaska Remote Seller Sales Tax Commission sends them the information they still charge the tax. It makes everyone's work harder because then they are forced to refund the tax. If the seller doesn't then we have to file paperwork with the commission and we file complaints of unethical conduct with our credit card company. If I am in a really bad mood I include the BBB and the FTC in the correspondence
 
RJSakowski said:
In a way, I am glad that on line vendors are charging sales tax. In Wisconsin, we are legally obligated to pay sales tax on all out of state purchases that we didn't pay sales in the state of purchase. Every March, I would spend the better part of a day tabulating all the previous year's purchases a figuring the tax liability for that year. That liability was added to our state income tax liability for the year. With a change in the rules, I only have to collect sale information for out of the country purchases now.

We didn't escape paying the taxes, only deferred them to the end of the year, and it made extra work for me. I like to keep our tax filings squeaky clean. The last thing that I want is a tax audit. Even worse, for the state or IRS to go back into past years and recalculate tax payment due with interest and penalties. It is also less painful to distribute the the sales tax liability over the year rather than getting hit with a lump sum in April.

Not that I like paying taxes. I particularly object to sales tax on used purchases. We paid the tax on the new item when first purchased and that should be the end of it. Unfortunately, the state will collect tax on any registered and licensed item when title transfers to a new owner. I would think that a value added tax as used in other countries would be a more fair way to raise revenue.
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I totally agree with you on the used items.
I pay income tax, sales tax, if I sell it why do I need to pay tax on it again? Why does someone else need to pay tax on it to buy it from me.
Seems like the double, triple dipping of the state into our wallets. GRRRRRR
 
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