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Discussion Forum

Sales tax

Piffin | Posted in General Discussion on June 7, 2003 03:31am

Not a poitical discussion.
I was just curious. In another thread CAG made this comment, “Don’t forget the lack of sales tax, thats where toolcrib becomes the real winner.”

Here in Maine the tax is 5% but I have lived where it is as high as 11% with combined city, county and state piling on….

So how mnuch is it where you live?

.
Excellence is its own reward!
Reply

Replies

  1. WorkshopJon | Jun 07, 2003 04:23pm | #1

    piffin,

    Regarding what CAG said,

     "Don't forget the lack of sales tax, that's where toolcrib becomes the real winner." 

     Don't know about other states, but here (WI) it's the law that all purchases made out of state, you must be reported on your annual  state income tax form and you must pay the tax then. Good thing I never buy anything out of state.

    But as to answer your question 5.26% to 5.51% depending on the county (that extra .01% was so that we could have a new stadium, Miller Park, for our losing baseball team.)

    Jon

    1. archyII | Jun 08, 2003 03:16am | #19

      Every state has a similar law.  My firm got audited and we had to pay sales tax (plus a penalty) on some computers that we bought.  The states (all 50) tried to go after the mail order business several years ago and make them accountable.  The mail order businesses' said that if they had to keep track of every states tax laws they would go out of business.  It worked for now.  As the states get deeper into debt I'm sure that mail order and internet sales tax issues will come back.

      1. WorkshopJon | Jun 08, 2003 11:12am | #21

        "Every state has a similar law.  My firm got audited and we had to pay sales tax (plus a penalty) on some computers that we bought.  The states (all 50) tried to go after the mail order business several years ago and make them accountable.  The mail order businesses' said that if they had to keep track of every states tax laws they would go out of business.  It worked for now.  As the states get deeper into debt I'm sure that mail order and internet sales tax issues will come back."

        ARCHY,

        Yeah, the states are starting to get desperate. The company I work for (a small mfr. firm with ~10 employees) was in a tiff over property taxes with the state on CAD/CAM/CAE software.

         No small matter as the licenses cost +$300K.  The DUMB state tax auditor's view was that 'cause we would load a file for quotation purposes (administrative vs. mfr.), we owed property taxes on it and had not been paying. Tax + penalties $$$$$$$$$$$$$$$ The software was used primarily on the shop floor. (In WI mfr. related equipment is exempt from property taxes).

         We could easily have purchased some cheapy program to do that, but why? Talk about as shake down. After mucho lawyer fees, my company won the case. What ever happened to a government for the people BY THE PEOPLE.

        Jon

        1. User avater
          CloudHidden | Jun 08, 2003 05:11pm | #22

          Wow, that's scary. I wonder if there's any difference in its view as property to be taxed be/c you only buy a license to use software, rather than buy the software itself?

          1. WorkshopJon | Jun 08, 2003 06:14pm | #25

            Cloud,

            It actually was a little more complicated than I made it out to be. The taxes also included all the computers on the network 'cause they were all interconnected, and share common servers. I think in the end we "proved" that the big companies did it just like us, and they weren't paying property taxes either.

            The state's view was that we should have stand alone equipment and software for administrative work, or be taxed on the whole deal. Talk about a backward view in a wired world.

            It was still a shakedown though as instead of the state, the lawyers got the money.

            Jon

        2. Wet_Head | Jun 08, 2003 09:02pm | #26

          What ever happened to a government for the people BY THE PEOPLE.

          hahahahahahahaha

  2. User avater
    Rugby | Jun 07, 2003 04:24pm | #2

    Here it's 6.5%.......Grand Island, Nebraska

    5% state, 1.5% city

  3. FastEddie1 | Jun 07, 2003 05:13pm | #3

    7.875% in San Antonio.  Texas tax law states that the labor portion of remodeling & repair to residential properties is not taxable.

    Do it right, or do it twice.

  4. User avater
    CloudHidden | Jun 07, 2003 05:22pm | #4

    6.5. We have a sales tax and a use tax. The later applies to purchases from other states that weren't taxed by the sales tax. It's self-reported.

  5. Matthew | Jun 07, 2003 05:24pm | #5

    In the Philadelphia suburbs, it is 6%. If you go into Philadelphia they charge an extra 1% which goes to the city. In Pittsburgh it is also 7%. However, if I drive 15 miles to Delaware, it is tax free (and there is a home depot just over the border). Of course, if you get delivery then thay have to charge you the local tax.

    For large purchases I will drive to Delaware. Most of the time I don't bother and just pay the tax. There was a home builder in the area that bought all his supplies in Delaware to save the tax. The state found out about him and made him pay.

    1. DaveRicheson | Jun 07, 2003 06:20pm | #6

      6% in KY and 5% across the river in IN. Out of state purchases are suppose to be self reported on state tax forms when filling.

      Food items are exempt unless they fall into the snack/junk food catagorie.

      Biggest gripe is paying sales tax on full MSRP of new vehicles no matter what you actually pay for it below MSRP. Same thing with used vehicles, tax on full retail value, not what you pay for it.

      Paying sales tax to the state quarterly, I get to discount 1% of the amount paid. If I owe them $100.00, I send them $99.00, etc.

      Dave

      1. GrouchieGrum | Jun 09, 2003 08:38pm | #31

        Its actually now 6% in Indiana.. Fun Fun!!

        1. User avater
          CapnMac | Jun 10, 2003 08:29am | #39

          6% in Indiana

          That's a change.  I can remember visiting my grandparents up in Peru, and being confused, because Indiana was 4%--I couldn't calculate that "easy" like the 5% Texas sales tax.  Ah youth, wasted on the young.

  6. junkhound | Jun 07, 2003 06:21pm | #7

    9.2%, King Co WA, higher by a few tenths in some cities.

  7. User avater
    CapnMac | Jun 07, 2003 06:49pm | #8

    Unlike ElCid, in central Texas we are only paying 8.25% (the San Antonio Metro [bus] system is likely getting the difference, if SA is like Houston or Dallas).

    I remember when the sales tax was only 5% (4% to the state, 1% to the cities).  Then we added 1% to help out the schools, temporarily.  Then we added a 1/2% here, and a 1/2% there to get where we are today.

    Construction labor is not taxable (yet, the hoodlums are conniving in Austin as I write this).  Construction materials used in a project are typically exempt, unless resold to the customer.  (You can either sell the customer the plywood & lumber to make the cabinets, then build them; or the customer buys complete cabinets, with the labor and materials included.)

    No state income tax, though.

    1. Piffin | Jun 07, 2003 07:35pm | #9

      Don't know how I could have imagined that this thread wouldn't be at least a little bit political, now that you mention hooliganms. While maine is one of two highest taxed states in the union, overall, I am suprised that the sales tax burden is low by comparison, because with a large tourist trade, there is the temptation to pass the burden to out of state visitors in that way. In the skiing counties of Colorado, that was the way they did and the tax got high. I'm waiting to hear from you guys still out there is there's any still over ten percent.

      We have a use tax for out of state purchases too. You have the option of reporting the exact amt paid, voluntarily, or they have percentagfe of income they assess as a projection from averages.

      If I was reporting by hand and filled in zero on that line, it always stuck. But now that I use a software program for taxes, it always fills in the amt and I can't erase without a lot of convolutions.

      Funny thing is - I can buy a few thousand of tools in the business and deduct it on the 1o4o under section 179 and if my other personal deductions bring my income down to the nontaxable level (happened this year due to medical) then I pay no use tax on these out of state purchases in the business unless I choose to report them..

      Excellence is its own reward!

      1. User avater
        BillHartmann | Jun 07, 2003 08:12pm | #10

        For the tourist a lot of places have add on hotel, resturant, and car rental taxes.

        I think that the hotel taxes someplaces add up to 20%.

        1. Piffin | Jun 07, 2003 09:18pm | #11

          I've noticed thatr and thought of it more as a business tax. Probably because I spend more on hotels on business truips that on pleasure trips..

          Excellence is its own reward!

        2. User avater
          CapnMac | Jun 10, 2003 08:08am | #37

          I think that the hotel taxes someplaces add up to 20%.

          The Dallas rate is 21%, per the Morning News' last update.  Addison's is only 19%.  So, driving from LBJ up past Spring Valley can save some bucks.

          Houston has some high "hospitality" rates, but they seem to vary by city versus county (and, likely, by Ward).

          The City has to pay for its convention center(s) somehow; we'll just get aunt madge & the elks to pay.

  8. benraymond | Jun 07, 2003 11:22pm | #12

    Gotta laugh, because Mass. used to be called "Taxachusetts."  We get away with a flat 5% sales, food and (non-luxury) clothing tax free.  Of course, you do have to add in the 5% (and soon to be 5.95%) income tax.

    New Hampster is good old 0% in both categories.  But try to own property there -ouch!

    1. steve | Jun 07, 2003 11:30pm | #14

      here in ontario the sales tax rate is 15 percent, 7 percent GST for the federal government and 8 PST to the provincial government

      food is exempt from both and labour is exempt from the provincial tax

      but our medical is free so that helps

    2. User avater
      Qtrmeg | Jun 09, 2003 07:38pm | #28

      Re: New Hampshire

      We have a rooms and meal tax of 8%, the meal tax is applied to anything that is prepared, even that salad bar in the grocery.

      Business' also have to file income tax returns, but we keep that a secret.

      We rely heavily on property taxes, and while that can become burdensome, it keeps things real. One thing that gets your attention is when your property tax increases 10-12% a year, and before long the town meeting becomes a lynch mob, and we string up a few spenders to set an example.

      We're just shoveling poop against the tide though, as more and more people move here from Mass, they bring along their expectations of the magic wand of government services, and the associated costs. Empowering the same legislators that couldn't balance the budget during a sustained boomtime, to implement the wish list of the new movers and shakers.

      It won't be long before the new state motto will be "Live Free, or Whine". I can see the new license plates, pink, with a picture of the old man of the mountain, with his lips puckering to kiss arse. Ha, even the old man gave it up.

      The thing is, as interesting as it is to gab about this tax, or the other, you have to consider your total tax burden. You also have to permit the states to decide their priorities and requirements, and share the taxes fairly.

      While New Hampshire doesn't fairly distribute the tax burden, we have enough sense to resist new tax alternatives, that will be abused, in short order. Any alternative will be a windfall for the legislators that have not only forgotten what a dollar is, but will spend that windfall to be re-elected, so they can line their pockets.

      I better stop now, I'm about ready to go off on a bad one...

      1. User avater
        bobl | Jun 09, 2003 08:05pm | #29

        Believe Ben addressed Ma. but left out the meal tax at 5% (that makes figuring a tip easy. 3x the tax)

        can't register a car w/o paying sales tax but it is on purchase price.

        we have income, sales, and property tax.  suppose to pay tax on items purchased out of state (sales tax on cars paid at registration so hard to forget to pay it)

        had a big deal in the past over liquer tax.  folks would go to NH where it was cheaper.  State stated to send Ma. troopers up there in unmarked cars to watch the NH state liquer stores so could catch the "tax evaders".  NH police started to arrest the troopers for loitering.  Ma stopped watching the stores after the bruhaha.

        bobl          Volo Non Voleo

        1. User avater
          larryscabnuts | Jun 09, 2003 08:20pm | #30

          I charge (collect) 7.5% on the cabinets I build. Thats 6.5% for the state and 1% for the county. Food and medicine is not taxed here. (Illinois) Some counties do not have the 1% tax. The ones that have big social service program or building programs do.

        2. User avater
          Qtrmeg | Jun 09, 2003 09:18pm | #32

          You forgot my favorite, exise tax. On fuel and cars, and who knows what else.

          1. billyg83440 | Jun 09, 2003 10:39pm | #33

            Idaho just "Temporarily" raised the sales tax to 6%.

            Of course, it was "temporarily" raised to 5% when I was in grade school.

            I'm sure this "temporary" increase will be a "temporary as the last 3 "temporary" sales tax increases.

            Oh well, when in doubt raise taxes. Much easier then managing expenses properly.

          2. User avater
            bobl | Jun 10, 2003 01:00am | #34

            it's temporarily 6 till they raise it to 7.bobl          Volo Non Voleo

          3. billyg83440 | Jun 10, 2003 01:35am | #35

            You're right, it's temporary until they raise it again. We all know that that state government should consume a larger percentage of state GDP each year, or they're being irresponsible. Don't we?

            Oh well, at least our phoney Republican governor, who specifically promised not to raise taxes; then immeadiately after getting elected proposed raising the sales tax to 6.5% didn't get everything he wanted. Only a 20% tax increase instead of the 30% he wanted.

            Guess once he announced he wasn't running for reelection he could be himself for a change. Must be a relief to quit having to pretend to be conservative all the time.

            Oh, after it passed he gave large pay raises to many of his senior staff members (up to 40%), and announced that teachers would also get a pay raise. Then mentioned that the current tax increase might not be enough, may need another increase next year. Yep, that'll certainly encourage fewer layoffs and help us out of a recession.

        3. benraymond | Jun 10, 2003 03:18am | #36

          My favorite thing in Massachusetts was a check box on this year's tax form where you had the "option," of paying 5.95% if you wanted to instead of the 5.0% Wonder how many people fell for that one?

      2. User avater
        CapnMac | Jun 10, 2003 08:26am | #38

        you have to consider your total tax burden

        Which can be the toughest measure to make.  The editorial chicken littles running about before the biennial legislative session were in some gudgeon about a $9-17 billion deficit (this for the entire state of Texas--New York City was/is looking at being $29 billion short).

        Then comes an article, on of the tax ".orgs" has put out a summary of taxes paid in Texas per capita for 2000.  Score, we're number 4 in the nation.  Now, that includes all taxes collected, like oil & gas leases; corporate taxes; and all license fees.  It did put some "everyday" taxes in a different light.  The state gasoline tax is a big chunk of change when it is not just the "price per gallon."

        Despite all this, the chicken littles all insisted that Texas needed an income tax.  Ok, I'm only a little bit cynical, the sales tax amendment to the state constitution set the maximum tax at 1%.  But, any increase of 1% or more required a new constitutional amendment.  (And, there's two amendments per county, now--oh well, such is life.)

  9. CAGIV | Jun 07, 2003 11:29pm | #13

    Oops... 7.5xx not 7.7

    Never be afraid to try something new. Remember, amateurs built the ark, Professionals build the Titanic.



    Edited 6/7/2003 10:32:13 PM ET by CAG

  10. User avater
    IMERC | Jun 08, 2003 12:38am | #15

    3.2% total.

  11. rasconc | Jun 08, 2003 01:07am | #16

    NC has 7% sales with small portion going to county, 2% on basic food (non-prepared), currently labor is not taxed but the squirrels in the cage in Raleigh want to.  It will probably cause many to just not report anything.  It is a pain for a small guy to have to become the state's tax collector.  By rights if you mark up materials you should be paying/charging sales tax on the markup as you pay sales tax on the materials when you purchase them. 

    NC has a provision to pay sales/use tax on out of state purchases,  you can itemize them or use a table based on adjusted gross income.

    Currently Federal and state retirement incomes are not taxed.  Military retirement is not taxed.  I believe Social Security is not exempted totally (have not got there yet).

  12. Danusan11 | Jun 08, 2003 02:08am | #17

    Here in Michigan 6% sales tax ,consumable items tax exempt, with exception of alcohol products

    1. DavidThomas | Jun 08, 2003 03:13am | #18

      Alaska has no state sales tax. Nor any state income tax. And they give about $1,500 each year to every man, woman and child just for taking up space.

      Locally, our borough (like a county) does 3% and the city does 2%. Both on everything - food, labor, etc. But only to a max of $25 (purchase price $500) I presume so local auto, snowmachine, and boat dealers wouldn't lose sales to Anchorage (which has no sales tax).David Thomas   Overlooking Cook Inlet in Kenai, Alaska

      1. Piffin | Jun 08, 2003 03:23am | #20

        I didn't realize they were still doing the royalty or severance tax payout up there. It was reduced for awhile wasn't it?

        I almost moved up there a couple of times but never made it..

        Excellence is its own reward!

  13. ToolDoc | Jun 08, 2003 05:46pm | #23

    Pennsylvania = 6 % sales tax

    1. FrankB89 | Jun 08, 2003 06:14pm | #24

      Oregon:  No sales tax, but anti-tax activists, through initiatives have duped a lot of voters into creating a real regressive mess...now with revenue problems like many other states, the state legislature has gone heavy to user fees and excise taxes and state-run gambling... 

      1. Piffin | Jun 08, 2003 11:45pm | #27

        Yeah man, gotta learn to hate those anti-tax-types...

        ;).

        Excellence is its own reward!

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