sales tax refund on equipment

Discussion in 'Business Operations' started by grass disaster, Feb 9, 2006.

  1. grass disaster

    grass disaster LawnSite Silver Member
    Messages: 2,751

    i have been informed that i may be able to get a refund on the sales tax that i paid when i bought new equipment.

    vehicles and trailers excluded.

    any truth to this?
  2. JB1

    JB1 LawnSite Fanatic
    Messages: 5,904

    don't believe so.
  3. grass disaster

    grass disaster LawnSite Silver Member
    Messages: 2,751

    i think your right i just found this

    Examples of exempt purchases:
    • chemicals used to treat waste generated as a result
    of providing the taxable service
    • fertilizers
    • flower or garden seeds
    • grass seed for taxable reseeding
    • fuels, lubricants, and antifreeze for equipment such
    as mowers, tillers, chainsaws and chippers
    • pesticides, insecticides and weed killers
    • pots (disposable), pot fillers and plants for indoor
    plant care

    Taxable purchases
    Examples of taxable purchases:
    • administrative supplies and materials
    • building cleaning and maintenance services
    • chemicals, cleaning agents, and water used to clean
    buildings, equipment and vehicles
    • equipment, machinery, accessories and tools
    • fuel, electricity and gas for space heating or lighting
    • furniture and fixtures
    • hand tools
    • linen supply or other laundry services
    • lubricants and antifreeze for vehicles used to haul
    equipment or employees to job sites
    • office supplies
    • repair parts
    • security services
    • specialty advertising materials
    • telephone service
    • training materials and supplies
  4. grass disaster

    grass disaster LawnSite Silver Member
    Messages: 2,751

    machine exemption!!

    a machine shop buys a machine.....

    pays sales tax when purchased....

    fills out a form at end of year...

    recieves refund on sales tax paid!!!!:blob1:

    can someone explain the this to me.
  5. grass disaster

    grass disaster LawnSite Silver Member
    Messages: 2,751

    i see no one cares that the gov is ripping us off.

    can someone explain to my why a machine shop doesn't have to pay tax on a replacement(new ) machine.

    how is this different than me buying a replacement mower???????
  6. CutInEdge Lawn Care

    CutInEdge Lawn Care LawnSite Senior Member
    Messages: 677

    One could probably assume their CPA found a loop-hole or their blowing smoke up your loop-hole. Just my .02 cents
  7. ECS

    ECS LawnSite Bronze Member
    Messages: 1,733

    You can take your total sales tax or your state income tax as a deduction, but not both. In a state where there is no state income tax, like here, I take off all of my sales tax, not just work related. They do have to be kept separate though, work and non work related sales tax.
  8. mastercare

    mastercare LawnSite Senior Member
    Messages: 289

    The post above was the most correct. I met with my CPA yesterday. First off, you cannot get a "refund," only a deduction.

    If you purchased a bag of fertilizer, you paid state sales tax (some states) That sales tax can be deduted. However, becuase you bought if for your business, you probably deducted the purchase price and the sales tax already as fertilizer expense.

    So, the only place this makes sense is when you buy big ticket items (or a lot of little ones) outside of your business, or for personal use. This means any items (not for business, you've already deducted it) such as boats, cars, homes, computers, etc.

    If you deduct these sales taxes, you cannot also deduct your property taxes. So, figure out which is bigger......but this should NOT include any business've already deducted those.

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