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"Heybub" <HeybubNOSPAM@gmail.com> wrote in message news:12invki5tfgtt50@news.supernews.com...
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As an aside, in my state stuff you buy, to use in your business for the production of income, is tax exempt. If, for example, your company did software development and it was for this purpose you used the computer, no sales tax is required.
Depends on the state. In Tennessee, they tax everything that doesn't end up on a product that is sold to the customer. For example, if I refinish a musical instrument, I pay tax on the sandpaper and paint brushes but not on the lacquer. With the way this state is, I'm surprised they don't tax me on the volatile lacquer fumes that evaporate during the drying process.
In many states you pay sales Use tax if under normal circumstances you would pay sales tax in that state but you did not for some reason. We pay sales tax if we buy something tax-free in another state but it is taxable in our state. Or in the case of the OP, he purchased it using a reseller's ID when it is normally taxable. He is responsible for sending in the tax.
Another thing to consider is that many wholesalers and suppliers require a
sales tax resellers certificate to validate a business but if the items are
purchased from out of state, they aren't on a resellers certificate because
the resellers certificate is only for purchases from within the same state.
Therefore, it is taxable because it's an out of state purchase, not because
it's on a resellers certificate. This is a common reporting error on the tax
form. I'm not saying the OP purchased it from out of state, just adding a
little info here.
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How to pay State Tax for use of material
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