# NYS: Sales tax and income tax



## srhnglnn (Jun 3, 2010)

I live in New york state. I'm wondering about sales tax and how to build a formula that will work for me. 

The county I live in in NY we are taxed 4% for clothing. Everything else is 7.75%.
So when I'm figuring in sales tax do I multiply 4% for the shirts
then 7.75% for the transfer print that I put on the shirt? 

Am I supposed to take that sales tax and put it away to pay my own taxes? 

Also, I'm starting an order for my school who is tax exempt. Does this mean I don't pay taxes at all on my end?? 

I am going to call my tax preparer and set up an appt. But I wanted to get some feedback here as well.

Thanks!


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## csw (Sep 3, 2009)

An appointment with a tax preparer / CPA will be a good start as they can help you get the business properly set up and registered. I believe you should be collecting 4% as you are selling clothing. This money will need to be sent in (probably quarterly) with the correct forms. 

Contact the school about their tax status. If they don't want you to include taxes on their invoice you will need to get a copy of their tax exempt certificate/number and keep this in your files.


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## Evo777 (Oct 17, 2009)

csw said:


> An appointment with a tax preparer / CPA will be a good start as they can help you get the business properly set up and registered. I believe you should be collecting 4% as you are selling clothing. This money will need to be sent in (probably quarterly) with the correct forms.
> 
> Contact the school about their tax status. If they don't want you to include taxes on their invoice you will need to get a copy of their tax exempt certificate/number and keep this in your files.


I also have similar questions for sales tax in NYS and have asked several people all which have told me different versions (CPAs and even NYS financial service when I called them up)

1) When the customer provides their own shirts, do you tax on the printing service?

2) When you provide both the printing service and shirts, do you collect tax on both service and shirts or just one of them?


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