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Tax Exemptions

gmpirategmpirate Member Posts: 1,654
edited January 2012 in Buying & Selling Topics
Right after Christmas I saw someone mention using their "tax exempt card" at Wallmart. I assume they just meant their "resale certificate"? We just show it to them and they know what to do?

Can any cashier at Walmart process a tax exempt sale?
Will other retailers process tax exempt sales? Target? Lego Store? B&N? Marshall's?

Already in business with a resale certificate.

Comments

  • jocappyjocappy Member Posts: 207
    In Washington overuse of this could cause an audit.
  • gmpirategmpirate Member Posts: 1,654
    How is that? Since one is not buying from a traditional "wholesaler" it's automatically flagged?
  • y2joshy2josh Member Posts: 2,002
    I wasn't even aware this option existed. I have my license, but I thought it exempted me from tax only when buying from a wholesaler.
  • gmpirategmpirate Member Posts: 1,654
    @BTHodgeman mentioned it originally in the Wallmart thread.
  • jocappyjocappy Member Posts: 207
    Really? Strange, lots of places will take them, tax resale number. Locally Fred Meyer for sure does, Lowes, home depot, lots more. But you are exempt from tax because you are to resell the item and collect tax when you sell.
  • jocappyjocappy Member Posts: 207
    Stores often have signs or advertise " no dealers " will not take them.
  • dougtsdougts Oregon, USAMember Posts: 4,112
    easy answer - live in a sales tax free state. works for me everytime

    ;-)
  • pcironepcirone Long Island, NYMember Posts: 346
    I buy Lego tax free from Walmart, Target, Costco, Sam's and BJ's. Walmart issued me a card that I show to any cashier and they always know what to do with it. At Target, I have to produce a copy of form ST-100 (NY State) and a copy of my Certificate of Authority for each transaction. At Costco, Sam's and BJ's they have tied it to my membership cards and every time I shop there the first question they ask me is, "Will this purchase be tax exempt?"

    I have heard many, many people make the 'over use causes an audit' claim but I don't think anyone really speaks from experience, it's more from people who can't buy tax free and wish they could. I have been doing this for at least 10 years and it's not just for Lego.. if I see a good deal on something I buy it tax free and resell it. For example, shortly after the hard drive shortage began Costco held their prices to reasonable levels so I bought about 200 1TB external hard drives for $69 or so, they called the manager over who thought I was NUTS but let me buy them. Needess to say I made a bundle off of them.. the point is I have been doing this for a long time and in considerable volume and have never been audited.
  • gmpirategmpirate Member Posts: 1,654
    @pcirone Already knew about Costco (done it) and Sam's but never knew other chains would handle it. Ever have any issues with it -- like at Target? I keep thinking about that manager from Target that got in my face a few weeks ago for trying to buy too much.
  • pcironepcirone Long Island, NYMember Posts: 346
    Never had an issue buying in any quantities at any store.

    Let me also say that all income is reported and all taxes are paid - I also own a computer / consulting business and it all flows through my S-Corp. I also collect and remit sales tax in NY state.

    My advice to everyone would be if you are going to sell Lego for profit and if you are going to pick up the profit as income then you might as well do everything the right way and take advantage of not paying sales tax in the process.
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