i ask this question bc i worked at a department store and a cashier came to my manager telling her that this lady was exluded from taxes. they both went to the cash register. but i never asked anyone about it.
so i want to know how to do it
2006-09-20 07:16:36 · 5 answers · asked by frekinRoyalty 1 in Business & Finance ➔ Taxes ➔ United States
Sounds to me like what you overheard was a conversation about a tax-exempt organization. These organizations include churches, and charities, and other organizations. These organizations don't pay sales taxes, and in some states are also exempt from property taxes and others.
You can't become tax-exempt for personal use items. But if you ever find a way, be sure to let me know!
2006-09-21 01:34:50 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
In the USA no individual can be excluded from paying taxes (even dead people pay taxes, the estate tax is due 9 months after you die). Only Tax Exempt organizations and certain businesses can be excluded from paying taxes that are USED in the ORDINARY AND NECESSARY part of their business.
A state will issue an organzation/company a SALES tax exemption certificate which your store is required to obtain and have on file. If not then you must charge sales tax.
Some states do not allow the use of a certificate issued by another state used in their state (Massachusetts for example)
Manufactures do not pay sales tax in my state when they purchase items to use in the process to make the product they manufacture. But they do pay sales tax on the photocopy paper they buy for their copy machine.
Charities do not pay sales tax on office supplies that they use to run their organization, but if they were to buy a 100ft Boat for the
Employees to sail to Bermuda that would be taxable.
The penalty for failure to charge the sales tax is that the store will have to pay for it out of it's own profit
2006-09-20 14:29:53 · answer #2 · answered by dillon Y 3 · 2⤊ 0⤋
dillon Y gave a very good answer. In addition to what he(?) said, some states exempt items purchased for resale from sales tax. They collect tax later on the resale amount.
2006-09-20 20:09:02 · answer #3 · answered by STEVEN F 7 · 1⤊ 0⤋
you have to be tax exempt and that status is set forth by being a religous organization or a non profit org
2006-09-20 14:19:40 · answer #4 · answered by supersherman21 1 · 1⤊ 1⤋
there are no taxes on groceries.
the only way to be excluded from taxes in the u.s. is to sell all of your stuff and move overseas to africa
2006-09-20 14:57:59 · answer #5 · answered by lalondejr_donald 2 · 0⤊ 1⤋