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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: TheStockFairy who wrote (51554)	4/6/2006 3:53:32 PM
From: GraceZ	Respond to of 306849

I'll deal with the Feds any day over the state sales tax jerks. Maryland went fishing about six years ago, they sent out special reporting forms to everyone who has a resale number asking them to detail all their Internet and mail order purchases so we could all pay the state sales taxes on those purchases. I sent the forms back with big black zeros. The states have conflicting rules for different departments because they developed in isolation. I'm clearly a manufacturer, but my photographer clients could be a service or a manufacturer. The state of Maryland claims they are a service when it benefits them and then claims they are manufacturers when it suits them. Anyone who tried to fight this insanity just wound up spending a lot of money to get on their bureaucratic radar. This made the rest just do whatever they could to run as far under their radar as possible. It drove me crazy because I want them to all have resale numbers because I don't want to collect taxes for the state.

To: TheStockFairy who wrote (51554)	4/7/2006 2:11:49 AM
From: Amy J	Read Replies (1) \| Respond to of 306849

Your State tax body is absolutely correct and you should pay the tax, because you neglected to obtain a copy of the reseller certificate. When we issue official "Sales Quotes/PO" it states, "Taxes will be applied if a reseller ID is not provided." In order for the Sales Quote to turn into a PO, the customer needs to sign it at which point it is legally binding. If they don't supply the reseller ID, they are legally obligated to pay the taxes to us per the PO terms which they signed, and we in turn pay this tax to the State. This is how you avoid the situation you are in. I'm a bit surprised you are protesting your error. However, if you have a signed reseller contract in place (which you should), they might be more lenient on you even if you don't have the reseller ID. But if you don't have anything, with no evidence to prove your customer is a reseller it's your word against your customer - and the customer is always right from a reseller tax perspective - you owe the money not the customer you claim is a reseller. Regards, Amy J ( Our reseller contracts require the reseller ID. Also, any PO that originates from a reseller is required to contain a reseller ID or the PO is rejected if it does not include taxes. We also do annual internal audits to make sure the reseller files contain a copy of the reseller ID )