# Don't forget your sales tax



## binki (Jul 16, 2006)

Three businesses around us spent the money they collected for sales tax and two of them were closed down by the State. The third paid a 10% penalty to get an extension. 

We keep a separate bank account just for sales tax and move the money over there every month.


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## lben (Jun 3, 2008)

I have to pay mine every 6 months. I set aside the tax money for every sale so I don't spend it.


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## jiarby (Feb 8, 2007)

we have a business savings account. Once a week we move the sales tax out of checking into savings. 

Out of sight, Out of mind!


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## BroJames (Jul 8, 2008)

Sales tax here, as its name implies, is based on percentage sales. We pay them quarterly. We're in a shopping mall so can't get away with it and a low sales, even if that is the case, will raise eyebrows. Revenue people here usually won't accept a lower year-on-year (or year-over-year) sales. 

January for us, is a time for renewing various business permits and licenses and some of these are based on your capitalization.


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## puzzleswithout (Jun 2, 2010)

BroJames said:


> Sales tax here, as its name implies, is based on percentage sales. We pay them quarterly. We're in a shopping mall so can't get away with it and a low sales, even if that is the case, will raise eyebrows. Revenue people here usually won't accept a lower year-on-year (or year-over-year) sales.
> 
> January for us, is a time for renewing various business permits and licenses and some of these are based on your capitalization.


Various forms of clothing are not subject to sales tax in many states, right? Are you selling items other than apparel?


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## BroJames (Jul 8, 2008)

Sorry I did not made it clear. I live in the Philippines.

Yes I sell other items but have sold/shipped a few shirts to the US and some other items to Europe. Although I do not really sell internationally, I was told that by our accountant that all our local and foreign sales, and services, are subject to local percentage sales tax.


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## binki (Jul 16, 2006)

The PRC taxes just about everything. BTW we got a visit from our friendly taxing authority today to 'educate' us on how to collect sales tax (and look around to see what they can grab).


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## sjidohair (Apr 9, 2008)

thanks for the info binki


MMM


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## TimeWithoutTheE (Mar 31, 2007)

how does California state taxes work?
Also if you have a state tax setup will Federal come after you as well?


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## kc6789 (Mar 28, 2010)

This doesn't apply to Oregon right?


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## binki (Jul 16, 2006)

TimeWithoutTheE said:


> how does California state taxes work?
> Also if you have a state tax setup will Federal come after you as well?


In the PRC you collect sales tax where you are at. It is 8.75% here. 

You pay $800/yr for a Corp or LLC/LLP as a minimum. 

Your county may charge a property tax on your non-real property. San Bernardino charges 1% per year. 

You pay a use tax on anything you buy that you don't resell that you were not charged a sales tax on. Anything online or mail order. 

You pay the City/County fees for Biz License and permits they require. 

You pay the State for any permits they require. 

If you have employees you pay EDD types of fees like unemployment insurance and workers comp as well as post a bond for the labor board in some industries and subject yourself the state surprise inspections. 

Federal has nothing to do with it, they have their own taxes. 

Oregon has no sales tax so that part does not apply.


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## Nestorpants (Mar 25, 2008)

Great advice!


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## VinylHanger (Jul 16, 2010)

binki said:


> In the PRC you collect sales tax where you are at. It is 8.75% here.
> 
> You pay $800/yr for a Corp or LLC/LLP as a minimum.
> 
> ...


 
Jeepers. That takes all the fun out of it.


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## PowerPromotions (Dec 31, 2010)

@kc6789 Every state has sales tax of some amount. your county and even city can have additional taxes. you can call the local county courthouse to find out what percentage sales tax you should be charging. 

as far as the question concering clothing and whether that is taxed or not. I know that in Texas if i am selling shirts to a group I have to collect tax or their tax certificate information. Maybe your state puts that into a no-tax bracket like food but I doubt it. 

Again the courthouse will know. hope that helps


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## jdoug5170 (Sep 8, 2010)

Not ALL states have a sales tax, not city, not county, not community. Oregon is an example. 

Of course, we have other ways to collect revenues needed in Oregon!


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## BroJames (Jul 8, 2008)

I think that is one reason that makes Oregon one of the best place to retire to.


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## jdoug5170 (Sep 8, 2010)

Retire to Oregon....No No No! 

I woke up this morning, the first of the New Year to frozen water, winds gusting from the east at about 35mph, expected to last through tomorrow, and temps in the low 20's. Oh ya, and did I mention the new increase in gasoline tax....Gasoline is now $ .06 per gallon more....Happy New Year from the state of Oregon!

Doug


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## BroJames (Jul 8, 2008)

I think gasoline price is an international problem.

I just saw about it on TV a few years ago. The golden autumn leaves is what's on my mind.


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## ldelzer (May 3, 2010)

State sales tax people are RABID. They mean business and are the last people on the planet that you want to mess with. 

I'm at the upper limit of paying my taxes quarterly and it SUCKS!!!! I can't ever seem to get my act together on setting aside the money. TRUST ME, you want to make sure you create a tax account and faithfully stick that money to the side. I would do it every week. My taxes that I owe on Jan 20th are around $4,100. PLUS, I get to pay property tax (even though I rent my storefront) and that's another $2,000 and is due by Jan 31st. It's enough to make you have an ulcer if you don't take it seriously and set it aside every month.

I've paid late fees before. They are terrible and very high. The state can also do fun things like take the money straight out of your bank account, freeze your bank account, come by and take all the money out of the register, make appearances during the work day, and other fun things. They don't wait long to do that either- it's around 30 days past due or so. I don't know what else they can do, but I'm betting it's painful, embarassing, and worse. This is based on what my local people have told me.

Call your local taxing authority and find out all the rules. Make sure you keep incredible records and pay everything faithfully. Plan upfront to set aside that money. If you don't do this front the outset, it gets much harder with each passing month/quarter.


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## lben (Jun 3, 2008)

jiarby said:


> we have a business savings account. Once a week we move the sales tax out of checking into savings.
> 
> Out of sight, Out of mind!


I'm waiting for the rest of my information to come in the mail from my new checking account. Once it gets here I'll be setting up a savings account for the taxes too. Like you said, out of sight out of mind and if it's in a different account the less chance it has of getting accidently spent.


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