For all the California quilters--Do your LAQ
#1
Do your lonarm quilters charge sales tax???? I just ran into one that does and I think she has misinterpreted the law.
Persons engaged in the business of rendering service are consumers, not retailers, of the tangible personal
property which they use incidentally in rendering the service. Tax, accordingly, applies to the sale of the property to
them. If in addition to rendering service they regularly sell tangible personal property to consumers, they are
retailers with respect to such sales and they must obtain permits, file returns and remit tax measured by such sales
What do you think?
Persons engaged in the business of rendering service are consumers, not retailers, of the tangible personal
property which they use incidentally in rendering the service. Tax, accordingly, applies to the sale of the property to
them. If in addition to rendering service they regularly sell tangible personal property to consumers, they are
retailers with respect to such sales and they must obtain permits, file returns and remit tax measured by such sales
What do you think?
#4
Originally Posted by crashnquilt
In Missouri we can not charge sales tax on service but sales tax on merchandise i.e. thread, needle
You can call the Department of Revenue and ask for your state.
You can call the Department of Revenue and ask for your state.
#5
Member
Join Date: Aug 2008
Location: Haughton, La
Posts: 42
If i may put in my 2 cents worth. I worked for a company that had both labor and parts charges. I am in California. Tax is charged on parts such in this industry as thread etc. However no tax is charged on labor such as the hours charged for the time used in completing the project. I hope this answers the question.
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