Sales Tax

[mystic one]

how do you get tax exempt from sales tax.. Can you just join your local church, and have them hand you a tax exempt card, so you can do tax free shopping?

I dont want to start a church, just get that tax exempt card. Heheheh

[Judge Roy Bean]

Originally Posted by mystic one

how do you get tax exempt from sales tax.. Can you just join your local church, and have them hand you a tax exempt card, so you can do tax free shopping?

I dont want to start a church, just get that tax exempt card. Heheheh

See my response in your other post.

[marksgirl]

You could move to Oregon or Alaska or one of the other states that don't have sales tax, or purchase things online...you'll only have to pay sales tax on items purchased from the state you live in.

[B Rookard]

Originally Posted by mystic one

how do you get tax exempt from sales tax.. Can you just join your local church, and have them hand you a tax exempt card, so you can do tax free shopping?

I dont want to start a church, just get that tax exempt card. Heheheh

Well, generally, it is not YOU paying the tax. The liability falls on the seller. But, like other costs, the seller covers it by adding it to the price.

However, YOU will never be pursued by the State if you, as buyer, don't pay the tax. They go after the seller.

So, YOU cannot get an exemption, because technically you are not the one paying the tax. It is the seller who would have to get an exemption.

[powder]

The seller has to 'hold the tax in trust' until it is submitted. It is the buyer that can/is exempt.

Presumably, the seller will maintain a list of 'exempt buyers' and submit to the gov't with tax.

[B Rookard]

Originally Posted by powder

The seller has to 'hold the tax in trust' until it is submitted. It is the buyer that can/is exempt.

Presumably, the seller will maintain a list of 'exempt buyers' and submit to the gov't with tax.

Simply wrong.

For example, Michigan law provides that the tax is collected from the person engaged in the making of sales:

MCL 205.52
(1) Except as provided in section 2a, there is levied upon and there shall be collected from all persons engaged in the business of making sales at retail, by which ownership of tangible personal property is transferred for consideration, an annual tax for the privilege of engaging in that business equal to 6% of the gross proceeds of the business, plus the penalty and interest if applicable as provided by law, less deductions allowed by this act.

Like I said ... name the last time you ever heard of the buyer being prosecuted for non-payment of sales tax.

It's always the seller.

The seller is the one who reports his sales and pays the taxes.