[gt04pony_13]

i recentley got my resale liscence but the next seminar is till the 14th i believe..... so....
what shouldn't you buy with your resale liscence? i know you buy the shirts for a fact WITH IT but the ink? the screens? r tape?the vinyl? on shirts or decals? i do screenprinting and have a roland gx24 so its vinyl stickers and thermoflex on shirts.

what about more equipment like a new program or a new machine?
oh and im in california. los angeles tax 9.75%
thanks in advance.

so you should seperate the shirts with tax and then add up your charges along with labor? labor is non taxable right?

 

[Rodney]

I think in general that items that are for resale may qualify for a sales tax exemption because the end customer would ultimately end up paying that tax.

So the reason why you give the t-shirt wholesaler your resale license is because you are going to decorate those t-shirts and sell them to a customer. The customer would then pay you sales tax on the sale of those custom printed t-shirts and you would report that sales tax on your sales tax returns. Unless of course that customer also had a resale permit (like a golf shop) and then you would keep their sales tax info on file and their end customers woukd pay the sales tax.

I don't think that equipment would fall under a resale rule, so you'd probably have to pay sales tax on that (unless you bought it out of state)

 

[vgary]

The t-shirt is purchased wholesale from a distributor using your resale license, the rest of the items used to produce the embellishments to the tee shirt would be purchased retail (usually) and fall under your "Cost of Goods Sold" or "Expenses" line item in your accounting. I generally calculate the cost of things like thread for embroidery as part of the cost of the shirt when formulating a selling price. When I purchase the thread from a retailer, it is posted in my company Profit & Loss statement under "Expenses: Embroidery Supplies". Hope this helps.

 

[dgroves108]

I would agree with Rodney - anything that goes in to the manufacture of a good that you sell to a retail customer, that tax is paid by the retail cuastomer, not the manufacturer. The equipment used to produce the shirt may be a bit of a gray area - check with the state you operate in.

 

[binki]

The equipment used to produce the shirt may be a bit of a gray area - check with the state you operate in.

In CA, where the op is from, the equipment is taxable for sales tax and taxable for property tax annually by the county.

And, on top of all of that, anything purchased from out of state that is taxable is supposed to be claimed and paid when you file your return with the BOE.