Tax Exemptions

Comments

• jocappy Member Posts: 207

  January 2012

  In Washington overuse of this could cause an audit.

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• gmpirate Member Posts: 1,654

  January 2012

  How is that? Since one is not buying from a traditional "wholesaler" it's automatically flagged?

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• y2josh Member Posts: 2,002

  January 2012

  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.

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• gmpirate Member Posts: 1,654

  January 2012

  @BTHodgeman mentioned it originally in the Wallmart thread.

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• jocappy Member Posts: 207

  January 2012

  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.

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• jocappy Member Posts: 207

  January 2012

  Stores often have signs or advertise " no dealers " will not take them.

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• dougts Oregon, USAMember Posts: 4,129

  January 2012

  easy answer - live in a sales tax free state. works for me everytime
  
  ;-)

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• pcirone Long Island, NYMember Posts: 346

  January 2012

  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.

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• gmpirate Member Posts: 1,654

  January 2012

  @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.

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• pcirone Long Island, NYMember Posts: 346

  January 2012

  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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