Bought any equipment online?? watch out for the taxman!
Hey fellow studio people. Just wanted to call to everyones attention about the state law that makes you pay sales tax on any out of state purchases where no sales tax was charged. I order a lot of gear online and found out the hard way that I have to pay sales tax on all of it (OUCH!) I was audited by the state and was ordered to pay all sales tax on these items since 2005 (OUCH..OUCH). So dont think that getting something online is cheaper because of saving sales tax...The tax man lurketh. I am a commercial studio business, so I'm not sure if this applies to the home studios, but just wanted to let everyone know what happened to me.
Replies to This Discussion
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Permalink Reply by Jim 'The Reverb King' Brown on -
I seem to remember way back when I worked at Sam Ash in NY I heard about a deal where the store would have to turn over it's records of out of state sales or cough up the sales tax themselves. I know they resisted but once a court order came about, I'm pretty sure they handed over the records - to keep out of trouble let me say that this is just hearsay from over 20 years ago and I don't remember who I overheard saying any of this...
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Permalink Reply by John Nicholson on -
I found out today that even used items purchased from an individual on EBAY is taxable. Doesn't even have to be a new item from a store! However, yard sale items seem to be exempt.
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Permalink Reply by Brett Wall on -
John, If YOU have a yard sale...CALL ME! LOL
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Permalink Reply by Jim 'The Reverb King' Brown on
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FYI - from http://tennessee.gov/revenue/tntaxes/salesanduse.htm
State sales and use tax - Sales tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services
Tennessee cities and counties have the option of imposing an additional local option sales tax.
Use Tax - The use tax is the counterpart to the sales tax. It is applied when merchandise (tangible personal property) is purchased from outside the state of Tennessee and imported into the state for use or consumption. The 45 states that impose a sales tax also levy a use tax
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