Some companies told me that there is sales tax on the Vinyl
replacement windows. But others told me that there isn't and the price
should include everything. Which one is correct? I'm in Illinois.
Sales tax is a function of where you are, and where the retailer is,
generally not the product being purchased*. If the retailer doesn't have a
physical presence - like a warehouse or storefront - in the state where you
live then you probably don't have to pay sales tax.
* There are exceptions to this, like groceries and tobacco items, but I
can't imagine hardware being one of them.
Is there any sales tax on the Vinyl replacement windows? Some
companies told me that there is one. But others say no and the price
for the windows should be everything. For example, if the price for 10
windows is $4k, it's 4k not 4k + sales tax. Which one is right?
If this isn't a troll, I suggest you call the tax people in your state
and ask them. Sales tax laws vary all over the place and here where I am
in Taxachusetts we have some pretty wild ones.
For example, donuts or other "baked goods" at a Dunkin Donuts or Krispy
Kreme type shop are taxed when bought a few at a time, but if you buy
ten or more "similar items" at once, there's no tax due. They're being
sold at the same counter and by the same employees, so go figger. All
that's different is the quantity. What they are collecting is
technically called a "meals tax", but it's at the same 5% rate as the
sales tax on other goods.
I could go on, but won't....
Jeff Wisnia (W1BSV + Brass Rat '57 EE)
"As long as there are final exams, there will be prayer in public
It would depend on the Country and or local subdivision. In the US
there are 50 different states plus DC. Each has its own laws. Check with
your local sales tax office. They won't bite, at least when I worked for a
State tax department we did not. :-)
There may be some question about who may pay the tax if there is one.
For example it may be different if you buy the windows for the contractor
and then the contractor puts them up, or if you pay for the finished
product. Simple questions like this can get complex.
On top of the other replies, here is another example of why some charge
sales tax, and some do not.
When buying wholesale, I can purchase tax exempt. I give them my tax ID #,
and charge the sales tax to the end user. If I'm going to purchase for my
own business, I do not claim exemption because I am the end user.
Some contractors use their SS# for ID, and go ahead and pay the sales tax.
This is usually done by smaller outfits. They usually roll the sales tax
into the job and do not collect separately.
In my State, you must have a Vendors # in order to collect sales tax.
First, you are not facing a SALES tax: it's a SALES and USE tax.
If the vendor has a physical presence in your state, he collects the tax and
remits the money to the state comptroller.
If the vendor does NOT have a presence in your state, YOU are responsible
for sending the appropriate tax amount to your state treasury.
Realistically, very few people pay the USE tax. I'm in Tennessee, 9.5% sales
tax and my competition is the Internet with effectively zero percent sales
tax or Kentucky with 6%. If I don't discount enough to come in below those
prices, I lose the sale.
When we were in NY, we had a new water heater installed by HD (well,
actually by one of their contractors). There was no sales tax on the
heater or the labor, but we had to sign a form to be sent to some govt.
body or other. Perhaps that would then affect the valuation of the
property at some point.
Perhaps some states deal with all property repairs/improvements that way?
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