The Green Industry's Resource Center

Ijustwantausername · #1 08-21-2012, 01:51 PM

When I got my EIN last year I thought it was to help me identify my business and to avoid paying sales tax like when farmers buy a piece of machinery. I tried to buy a mower and they said they would not take off sales tax and would only honor it if I were "tax exempt from the dept. of revenue."

Sooo, what number do I need to not pay sales taxes on stuff like that?

I called IRS and the Dept of Revenue and no one can help me.

CLARK LAWN · #2 08-21-2012, 02:16 PM

dont know about your state but in most of them you cannot buy equipment for your business use tax exempt. In Ohio i can buy materials i use on a job tax exempt but then i have to bill the customer for the tax. Only goods and materials for resale can be purchased tax exempt.

fastlane · #3 08-21-2012, 04:01 PM

EIN is a Federal tax number, like your SSN. Sales tax number is from the state. I need sales tax number to collect and make payments to the state. In PA. the only thing I don't pay sales tax on is an item I get for resale.

grandview (2006) · #4 08-21-2012, 06:35 PM

Sale tax exempt is usually for material only that your going to resell. Mulch,no tax ,but you resell it at a higher price and collect it on that.

OakNut · #5 08-21-2012, 06:37 PM

Yeah, methinks youthunk wrong.

JB1 · #6 08-21-2012, 06:40 PM

nice try but no cigar.

Ijustwantausername · #7 08-21-2012, 06:58 PM

Quote:

Originally Posted by grandview (2006)

Sale tax exempt is usually for material only that your going to resell. Mulch,no tax ,but you resell it at a higher price and collect it on that.

Ah ha! Thanks Grandview. My grandfather (long time tobacco farmer) got in a funk when I told him I paid sales tax on equipment, as he does not due to his tax exempt farm number.

I didn't know how all that worked.

JB1 · #8 08-21-2012, 07:02 PM

you would be amazed at what you find out if you ever have a state use tax audit.

Duekster · #9 08-21-2012, 07:10 PM

RESALE

The end user pays the sales tax.. with few exceptions.

as other have told you.

grandview (2006) · #10 08-21-2012, 07:12 PM

Quote:

Originally Posted by Ijustwantausername

Ah ha! Thanks Grandview. My grandfather (long time tobacco farmer) got in a funk when I told him I paid sales tax on equipment, as he does not due to his tax exempt farm number.

I didn't know how all that worked.

IDA's can grant sales tax exemptions on equipment purchased,but that's a whole different thing.