How to handle sales tax (NYS)?

[B a r r y]

Right. Some states call this "use tax", and collect it at the same rate and through the same channels as "sales tax".

Barry

[George]

Here they give you 3% or so of the tax you collected just for filling out the forms and writing the check. What could be simpler?

Certainly not the high income tax you guys pay.

[Mike Marlow]

think of as sales tax, but I don't see anything in the code that requires paying tax on mail order items as was the original comment that I replied to. In fact, the instructions for column D on the ST-100 specifically exempt purchases that meet the criteria for exemption of sales tax - even when purchased elsewhere. So - I'll modify my original reply to state that we are not liable for use tax on mail order tools or supplies that otherwise would have met the criteria for exemption had they been purchased locally.

[A.M. Wood]

answering

improvement

(furniture

FYI

NYS Info on Capital Improvements & Repairs to Real Property

a list of all of the NYS Sales Tax Publications

750, A GUIDE TO SALES TAX IN NYS, has a link to "Important Vendor Registration Information"

[Brian Elfert]

Power tools would generally be considered a capital purchase and would be taxable unless the state is exempting tax on capital purchases for manufacturer as many are.

Brian Elfert

[Mike Marlow]

Depends on what you are. If you're a contractor, then yes. If you're a manufacturer or a number of other categories defined by NYS, then no. It's spelled out pretty clearly by the state. For the shop guy who is building tables to sell, the power tools are exempt if they are predominantly used for the manufacturing work. Though it is indeed hard to believe, NYS is actually quite clear on this one... for a change.

[Brian Elfert]

My former business was audited once. The lady was the sterotypical government employee. She was mean, nasty, and just plain rude. I think she went to anti-charm school as a youth.

My failure to pay sales and use tax was due to lack of knowledge and not deliberate. I self audited everything prior to the current year and didn't have to pay any penalties.

Brian Elfert

[Robert Bonomi]

BZZZZT! *ONLY* materials purchased _for resale_ are legally exempt.

[A.M. Wood]

That is what I had believed. However, according to the information posted by New York State on

manufacturer does not have to pay sales tax on equipment predominantly used in the manufacturing process.

See Page 14 "Sales Tax Information For: Manufacturers, Processors, Generators, Assemblers, Refiners, Miners and Extractors, and Other Producers of Goods and Merchandise (12/97)"

"To be eligible for the production exemption, machinery and equipment must be used directly and predominantly (more than 50% of the time) in the production of tangible personal property..."

See Page 15 "A Guide to Sales Tax in New York State (8/04)"

"A manufacturer is required to register as a vendor for sales tax purposes in order to use exemption documents to purchase raw materials, machinery, equipment, parts, tools, supplies, and related services without paying sales tax on its purchases."

[Mike Marlow]

Not true Robert. Read the NYS code on it - it's really clear. Materials and tools used in the actual production are tax exempt.

[Fly-by-Night CC]

Well I think it all evens out no matter which state you live in - sales tax, use tax, fuel tax, property tax, income tax, it doesn't really matter, they get it in the end one way or t'other. I'm happier paying lump sums in property and income taxes than feeling nickel and dimed to death every day on every purchase.

Additionally I find it incredibly convenient for the price indicated to be the same amount of dough I pull out of my pocket at the register. And I'm happy to no longer have to deal with the state sales tax department

- even if the form is simple, they (at least Arizona) had a nasty reputation with collecting requirements which, as I indicated in my previous reply, seemed to fluctuate depending on the season, the moon phase, or the budget crisis du jour. I was much more anxious about a state sales tax audit than one from the IRS.

[George]

Convenient? If there's no sales tax, why can't the bozos charge six bucks versus five ninety-nine? I folded my taxes into my show prices after my daughter told me she'd never help sell again as long as I was making change. Most people appreciate that.

Death and taxes, and the occasional bond issue....

[Robert Bonomi]

There _are_ reasons for that 'odd amount' pricing. Grounded in psychology, not 'rational reasoning'. Research studies have shown -- repeatedly -- that: (a) people's "resistance point" to a price is almost always an 'even amount', and that it _is_ a "threshold" trigger. sales resistance is a *LOT* less if you're even "a little bit" under that threshold, vs over it. (b) *MOST* people do not compare all the way out to the _last_digit_ when comparing prices, when the 'earlier' digits are different. $19.99 vs $20.00 is _percieved_ differently than $20.40 vs. $20.41

Rational? Heck, no.

"Real world"? Heck, *yes*.

[George]

psychology,

Yeah, I took some courses in advertising. But it's still stupid.

[Robert Bonomi]

Welcome to the real world.

The fact remains that if you want to maximize sales, you _do_ set prices the 'stupid' way. BECAUSE the competition does it that way, you really don't have much choice about it.

[Edwin Pawlowski]

How about we eliminate pennies? Many ears ago if you bought a pack of cigarettes in a vending machine for a quarter, there were two pennies change in the wrapper. Penny candy would keep a kid happy. They are useless today.

Whenever you make a purchase under $100, the total paid should be rounded off to the nearest nickel. For purchases over that amount, round to the nearest dollar.

[Fly-by-Night CC]

As one who spots and retrieves most pennies I see on the ground, I'd rather get the 1 cent back than pay it for whole dollar pricing. Yes, it's a goofy mind game in pricing, but that's the way everyone does it, regardless of sales tax. It only takes 100 stoops to get a buck - helps the wallet as well as the waistline!

[Robert Bonomi]

Why not start with gasoline prices -- *still* quoted in _tenths_ of a penny?

[George]

Elimination of the penny and the paper dollar would save a lot of money, and probably be a push in pocket wear. But, as with the "retail dollar" of

0.99, not likely to go away.

[snowdog]

I believe it is still used as an advertising gimmick, and a psychological trick. "Honey, look that thingamajig that would fit perfectly in my shop is less than $500, it's only $499.99". You see it all the time even on car prices, because they can honestly say that the $49,999.95 car is less than $50K. Somehow you feel better about buying a product because it costs less than some magical number, but once you are actively aware of it the trick isn't so effective any more. But, let your guard down any they have you again.

John C