Tax EIN number and purchasing equipment help?

Discussion in 'Business Operations' started by Ijustwantausername, Aug 21, 2012.

  1. Ijustwantausername

    Ijustwantausername LawnSite Bronze Member
    Posts: 1,472

    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 LawnSite Silver Member
    Posts: 2,526

    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.
  3. fastlane

    fastlane LawnSite Senior Member
    Posts: 347

    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.
  4. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,465

    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.
  5. OakNut

    OakNut LawnSite Platinum Member
    Posts: 4,077

    Yeah, methinks youthunk wrong. ;)
  6. nice try but no cigar.
  7. Ijustwantausername

    Ijustwantausername LawnSite Bronze Member
    Posts: 1,472

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

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961


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

    as other have told you.
  10. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,465

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

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