# How do you tax your work?



## jadboudiab (Nov 19, 2013)

Hello everyone, 

Do you charge your customers tax on all of your printing orders except the tax exempt sales?
including screen charges and all?
I deal with many local shops and businesses that don't always provide tax exempt info but expect a tax free order, I'm looking to find out how everyone taxes their customers.
Also for schools, tax? No tax? Is a tax exempt needed in this case?


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## Mtnview (Nov 5, 2009)

jadboudiab said:


> Hello everyone,
> 
> Do you charge your customers tax on all of your printing orders except the tax exempt sales?
> including screen charges and all?
> ...


If they expect tax free status they provide us their tax exempt certificate or their sales tax license if they are collecting tax.


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## SunEmbroidery (Oct 18, 2007)

Tax laws from state to state. You need to find what laws are followed in your state. I don't know what your local laws are but if some of your customers are reselling what you sold to them then its likely they aren't required to also pay tax on the same item. A group that claims to be tax exempt should supply you with a copy of their exemption statement. You'll need to keep this statement in case you are audited.


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## binki (Jul 16, 2006)

In California everyone pays sales tax except those with a valid sellers permit for resale only. Almost no organization or person is exempt from sales tax


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## Viper Graphics (Mar 28, 2009)

binki said:


> In California everyone pays sales tax except those with a valid sellers permit for resale only. Almost no organization or person is exempt from sales tax


California....land of taxes and regulation, and now land of no plastic bags! always something new out there!


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## charles95405 (Feb 1, 2007)

In California you do not collect tax on labor...but on the finished product price. No agency is exempt from paying tax, even schools, cities or other official agencies UNLESS they have a resale permit


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## Ripcord (Sep 2, 2006)

You know...I never thought about this until just now, but what's the reason that churches, public schools, governments, etc. are exempt from paying sales tax? If anyone can afford to pay a few more bucks for something it's institutions like this...but the sales taxes are paid by Joe Blow buying his groceries....


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## DPendable (Dec 21, 2012)

Ripcord said:


> You know...I never thought about this until just now, but what's the reason that churches, public schools, governments, etc. are exempt from paying sales tax? If anyone can afford to pay a few more bucks for something it's institutions like this...but the sales taxes are paid by Joe Blow buying his groceries....


I believe it's because they are non profit. I think.

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## binki (Jul 16, 2006)

charles95405 said:


> In California you do not collect tax on labor...but on the finished product price. No agency is exempt from paying tax, even schools, cities or other official agencies UNLESS they have a resale permit


We don't separate out labor so the entire order is taxable except shipping. As far as a sellers permit we have to have a statement that we collect once a year that states what they do so even if they have a sellers permit we have to charge tax on item they are not reselling such as stuff for their business or themselves.


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## binki (Jul 16, 2006)

Ripcord said:


> You know...I never thought about this until just now, but what's the reason that churches, public schools, governments, etc. are exempt from paying sales tax?...


In California they are not exempt. And it is a common misconception that non profits don't pay sales tax.


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## jadboudiab (Nov 19, 2013)

Did some research on this, Basically any organization/biz/non-prof can be exempt from paying tax on items they'll be reselling ONLY if they present tax exempt forms. If they do not provide the forms, they must pay sales tax even if they're non-prof.


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## Ripcord (Sep 2, 2006)

jadboudiab said:


> Did some research on this, Basically any organization/biz/non-prof can be exempt from paying tax on items they'll be reselling ONLY if they present tax exempt forms. If they do not provide the forms, they must pay sales tax even if they're non-prof.


That's true. I don't pay sales tax on my shirts or my ink, because they become the finished product which my customers pay taxes on (or not, if they are a non profit or if they will resell the shirts to their customers...) I do pay sales tax on my emulsion, solvents, etc. because they aren't part of the finished product (although this seems like double taxation, because the cost of these necessary materials is included in the final price of the finished shirts, and the customers pay the sales tax again.)

Some customers who have a resale license will order shirts for their own employees and not expect to pay sales tax. Technically they are supposed to, since they are the end user. In this case, I'll asked them to confirm in an email that they will be reselling the shirts, so I'll have written evidence should I ever need it.


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