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We just received a notice from the Commonwealth of PA (confusion?) that they were offering a mratorium for any fines, etc if businesses who owe a use tax, pay it as they were supposed to.
Has everyone else been paying their state’s use tax, or whatever it may be called? I believe that any state that has a sales tax, has a use tax.
Thoughts???
Dave, from my understanding, “use tax” is to be payed to the state, in which you reside, for products purchased out of state that are not pre-taxed. All of the products and equipment that we buy through HB are subject to “use tax”. I’m not sure if the percentage is consistant from state to state. I recommend making an appointment with your local tax consultant since he will be in tune with the laws in your state.
I would also like some info on this from anyone else. I have seen that on my quarterly tax form. I do those, but have a CPA do the govenment part. I will see what I can find out. BSutton, are u paying for this, and what does it run you on average? Our tax office has never said or sent anything on this. Corporate has never said anything about this either.
Mike
When I was in training in 1999 Cody recommended that we get a state sales tax number and pay the state use tax on all products purchased from Heaven’s Best – Idaho. The rate in NC is the same as the sales tax of 7% and I pay it quarterly. I don’t need the Dept. of Revenue knocking on the door looking to audit.
I hate to be the party pooper! There is no sales tax, useage tax, or military retirement state tax in the Great State of Oregon! There is still some prime area’s open in Oregon and I could set you up with the state Owner. He’s really a great guy. Really!
I believe that if we purchase retail items like rakes, spotter and the like and clothing (PA) no use tax is colected since it will be collected when sold. There is no sales tax in PA on clothing.
Too bad about Oregon….
Dave,
Take Mr. Sutton’s advice and find a qualified tax account to help you with this. I had a bad experience with this when we started. The first accountant I worked with told me I did not need to pay Use tax. I was later “invited” by the state, MN, to pay Use tax on all my qualified purchaces from HB including the appropriate penalties. Starting from the first purchase from HB (equipment package/product when we purchased the biz). I have since hired a new “qualified” accountant and tried to become as knowledgable on these tax laws as I could (cya). Cody did cover this during our training and I just didn’t follow through on this properly. The laws differ from state to state. So what applied in my case may not in yours. But you do need to be sure and follow up on this! I learned the hard way!
Rick McConnell
Rick,
Sorry to hear of your experience. I think that mostly, people and companies ignore this issue, until they get caught. Any out of state internet purchase also has tax due in any state that collects sales tax.
My wife is the controller with her company and they were audided for sales tax and use tax audit was rolled into it. In her audits, the auditors looked at only the current year and did not go back into history on either audit.
In PA they are looking for 6% of money spent out of state and the product used in state… a great example is the equipment or the van giveaway…
If paid as it should be, it is not a lot of money per se, but if you have not paid at all…oops, in PA they have penalties. Paying something but not all of the taax due would be perceived as a better thing than not paying at all. And inPA, ingorance is no excuse…thelaw has been on the books since 1953.
If Cody mentioned anything like this in our class Rick (and we were in the same class) I do not remember at all…lots was said..
Seems prudent for all to look at their individual situation and consider the consequences. I started this thread as a kind of service to all as I felt that there are many of us in the same boat.
For the record, we will calculate our tax for this year, pay it and then keep current into the future…I will personally be dipped before I will have some slimy auditor tell me that I owe them money at the end of the year.
Dave,
I took the proactive route as well and brought my error to the attention of the Mn Dept. of Revenue, before they found it. As such, they were willing to waive any of the penalties invloved. And since it was my first year of business, that was the only year involved. And you are absolutely right, ignorance is not an excuse.
Rick McConnell
I’m not saying that I plan to rip off the Lone Star State here, but I have a question on this? How do they know how much product and other things you purchase out of state. I did notice that on my quarterly tax form. I’m sure Cody did tell us, as well as a lot of other information. I will call my CPA today and find out for sure. That sure is a bummer though. Thanks for the info. I’ve been paying the sales tax of course which in Texas, because we like everyting “big”, we have a big rate at 8.25%. We do have some tax exempt accounts which make life a little better when it comes to quarterly taxes.
Loving taxes,
Mike Nowlin
Yup even in Texas they are figuring out how to collect on out-of-state sales taxes. At this point I do not know if this has passed yet, but do know it has been discussed at the state level. The reason is high levels of internet sales. I’m afraid to ask though…….. hmmmmmnnnnn is it time to move to that 100 acreas in the middle of no where & escape all this junk?? haha 🙂
Jeff
Canada has some exciting Heaven’s Best franchise oportunities and plenty of 100 acre parcels in the middle of nowhere. call me 🙄Jeff,
My understanding was that it is the law in all states that have a sales tax, that they have a use tax as well.
Before you go jumping the border to the north, visit there sometime and just you buy a few things, like a meal. As foreigners there we get the taxes paid back at the border..we are lucky.
I would love the 100 acres though
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