Taxes

[Justin N.]

Dear Members,

I am considering sending off my newly acquired pre 1968 oil canister to be powdercoated and silkscreened. The gentleman wants to charge me taxes in his state for his services, but I thought there shouldn't be any as the services and parts are purchased out of state for me here in Calif ? Thanks!

Justin #41362

[Don 42616]

Thats my thought too. *NM*

[Harry Sadlock]

Re: Taxes

Sounds like a little extra profit to me.....

Harry

[Duke W.]

Re: Taxes

California and as far as I know doesn't charge sales tax on "services" only "goods". Since silkscreening is primarily a service, it should not be taxed, even both you and the vendor are in California, however, if the vendor breaks out material and labor sales tax would be charged on material.

If you buy from an out-of-state business that also has an operation in CA they must charge CA sales tax, even if they ship it from out-of-state. Depending on the state, local sales tax may or may be charged, even if the customer is out of state.

It can get complicated.

Duke

[Rob A.]

Re: Taxes

Justin,

The only time an out of state vendor or merchant can charge you tax is if they have a store here in California also. Also, it is correct that tax can only be charged on parts, not labor regardless. If he insists on charging you tax, then he should not charge you shipping charges to even it out. I would find someone else if he doesn't come around...

[Gary B.]

Justin: Who are you having do the restoration? *NM*

[Kevin M.]

Re: Taxes

CA wants taxes on everything. If you buy a piano in Nevada no sales tax and bring it into CA your supposed to pay sales tax when you file your state income tax, there is a form for this. It is my understanding that EVERYTHING you buy out of state you must pay the seller CA tax, they in turn are supposed to keep records and pay the state franchise tax board quarterly. This is whether or not they have a store in CA. Most online sellers require this now. CA is broke remember. This also goes for stuff we sell on ebay, we're suppose to collect sales tax and report it on our state income taxes, and submit a form to the state franchise tax board. Really I'm not making this up, they can come down on you big time if your a big online seller.

Kevin

[Duke W.]

Re: Taxes

Yes, that would be line 51 on CA Form 540 where you add the applicable tax for out of state purchases where the vendor did not collect and send the appropriate tax to California.

The 540 instructions (p66) claim that this has actually been in effect since 1935, but it's only been recently that Sacramento has been squealing like a stuck pig due to all the internet purchasing going on where Californians are skating on tax revenue needed by our out-of-control state legislature to support all their pet spending projects.

Someone needs to remind them of a significant event in US history commonly known as "The Boston Tea Party".

Duke

[Justin N.]

Re: Taxes -total=$74.08?

Gary and Members,

Harry Sadlock was kind enough to put me in touch with Orindales, I believe his name is Ken. He wants to charge tax an he's in Tennessee. It's a very resonable amount, $65 to restore canister, but his amount came to $74.08 and I questioned this to him. he said he's supposed to charge and I said I don't think so.

Justin #41362

[Kevin M.]

Re: Taxes -total=$74.08?

That's what I pay him. Great work I had mine painted like the factory.

Kevin

[Dennis A.]

Tenn. does have a state sales tax... *NM*

[Gary B.]

Ken @ Orindales does fantastic work *NM*

[Gary B.]

Many states have a use tax; not just CA

Guys,

I think if you check into the tax codes for other states, you will find that many states that have a state sales tax also have a state use tax, which is meant to be paid on all items purchased out of state. For example, I know that New York has a use tax, just like California's and I believe that the NY law has been on the books for years, just like California's has. No one cared much about the use tax laws until the internet became so popular and people started buying so many goods from out of state in order to save on sales tax.

Gary

[Page C.]

Oil Canster

Thats about what I paid for Ken Hansen to redo my oil canster. You will be pleased with the work. Carried it to a MAC Chapter meet this spring and eveyone who saw it was interested in having theirs done. He also installs a snap ring on the shaft of the bolt so you can easily take it apart.
Page Campbell

[Steve G.]

Re: Many states have a use tax; not just CA

While it is true most states have a use tax, many have been very aggressive in collecting them over the years for catalog sales and the like in order to protect their vendors, especially those who lose business close to their borders. Its just that since the advent of the 'Net, more people have heard about them.
However, use taxes have essentially no impact on "sales of service." Sales and use taxes are calculated on the transferral of tangible personal property at retail; Services are rarely taxed and the only time use tax is involved is in the tangible personal property transferred as an incident of the service (i.e., spark plugs during a tune-up) and these tax bases are minimal at best.