I know we all must pay the state sales tax for items purchased like trucks, lawn mowers, rakes, trailers, gas etc. But when I purchase say $100 of mulch, my suppliers still charge me $107.00 after the NJ 7% sales tax. Then that means when i charge the customer, the tax has already been paid, by myself or my company when it was first purchased. When i file my quarterly sales tax. If I purchased say $10,000 in supplies, thats $700 in sales tax that IVE ALREADY paid for in that quarter. If my total sales tax collected was say $1,000, i should owe still $300.00 correct? Problem Ive run into this time, ive spent a lot more on supplies alone this last few months than ive had income to show for. Say ive spent 20k in supplies and can only show 18k in income. Thats $1,260 collected sales tax, yet $1,400 sales tax paid for already in resalable supplies. I know others in retail market industries and small businesses and they have tax exempt "resale" license numbers so, when they buy supplies for resale, they dont have to pay sales tax on items they're reselling. Why dont lawn/landscape companies have these or are we eligable for these same documents? How do you work this part of your invoicing? Locally some of my customers know that they can run around the corner and buy a yard of mulch for $20.00. If the same customer has me deliver it, i would like to make a few dollars on that yard plus delivery and not have a bitching customer. 5 yards costs $107.00 If i sold it to the customer, id have to now sell it for $107.00 plus my markup, lets say $3 per yard so its $115.00 plus nj 7% tax is now $123.05 plus my delivery fee and tax on that too. You get the point, if this is how it really worked, why would people buy supplies from landscapers when they can usually find a local landscape or nursery center to them and only pay the sales tax ONCE? This would kill us on big items like Trees that are $500 and the customer knows the cost of the tree. It would be $500 plus my tax paid of 7%/$35.. Id have to bill out $535.00 plus tax before i break even. All ive done there was make the government 14% on an item i could have had the customer just go out and buy on their own. I got a tax notice back in the mail this month, stating i owe another 1k or more. When NJ tax is filed, the only option for anything of this nature is payments made. So i put in the amount of sales tax ive paid directly for supplies that were resold to end customers. That number is higher than my amount owed for this quarter. Now they want 1k+ and then interest all the way through September 14th!