[Vision2020] The IACI and Personal Property Tax

[g. crabtree]

When we purchase merchandise for resale, it is tax exempt. Sales tax will be 
collected on it at point of sale. Technically, when we purchase items in the 
community for business use it could be tax exempt but we, and I suspect 
most, small business don't fool around with it. Too much additional record 
keeping.

Personal property items can be depreciated.

In our case, use tax covers consumable items. Chemicals, lubricants, small 
parts (pins, washers, screws, etc.) that are necessary to do our job and not 
accounted for in some other way. This is taxed at the same rate as sales 
(6%)

When we work in Washington everything (labor & all materials) are taxed at 
.078% and, of course this entails a completely separate set of reports and 
forms.

When it comes time to pay the various taxes we, and again I suspect most 
small operators, prefer to err on the slightly (very slightly) high side to 
prevent running afoul of the powers that be. Think good luck offering.

The information that I've laid out in these posts is but a skeletal 
thumbnail sketch of the rules and regulations for recording and reporting 
the various (federal, state, county, city) taxes small business people pay. 
For brevity, I haven't gone into any of the byzantine details. On top of 
that realize that most of us who deal with this are just guys who, out of a 
clear blue sky got dropped into a position of having to deal with this 
nightmare, we're not accountants. If anything I have said is incorrect, it's 
not for want of trying to get it right.

g
----- Original Message ----- 
From: "Tom Hansen" <thansen at moscow.com>
To: "'g. crabtree'" <jampot at adelphia.net>; "'Vision 2020'" 
<vision2020 at moscow.com>; <ttrail at house.state.id.us>
Sent: Tuesday, January 23, 2007 6:29 AM
Subject: RE: [Vision2020] The IACI and Personal Property Tax


> If this is in fact the case, thanks for the insight.
>
> It has always been my impression that purchases made by a business (for 
> use
> by that business) were/are tax-exempt.
>
> What percentage is generally assigned to "use tax".  Since these items 
> that
> are susceptible to "use tax" are not real property, depreciation can be
> assumed.  Does the use tax also "depreciate"?
>
> Tom Hansen
> Moscow, Idaho
>
> "Life should NOT be a journey to the grave with the intention of arriving
> safely in an attractive and well preserved body, but rather to skid in
> sideways, chocolate in one hand, a drink in the other, body thoroughly 
> used
> up, totally worn out and screaming 'WOO HOO. What a ride!'"
>
> -----Original Message-----
> From: g. crabtree [mailto:jampot at adelphia.net]
> Sent: Tuesday, January 23, 2007 6:23 AM
> To: Tom Hansen; Vision 2020; ttrail at house.state.id.us
> Subject: Re: [Vision2020] The IACI and Personal Property Tax
>
> Actually, personal property IS your kitchen toaster if you are a business.
> Personal property tax covers tools and fixtures in a business. In my case
> key duplicators, code machines, pinning kits, lock picks, volt/ohm meters,
> cash register, work bench, computers, the carpet you walk on, and the seat
> we provide to rest your bones while we cut your keys. Pretty much 
> everything
>
> that is not covered by some other tax.
>
> Land & building (improvements) = real property tax
>
> rolling stock = sales tax & vehicle registration
>
> profit = income tax
>
> everything else = use tax
>
> There is absolutely no aspect of a small business that is not taxed. And 
> to
> top it all off the small business man is also the uncompensated tax
> collector for the states sales tax. Believe me, it's no small amount of 
> time
>
> that is spent keeping track of the states money by way of reports and 
> record
>
> keeping. Very little time for web surfing and sand pounding.
>
> g
> ----- Original Message ----- 
> From: "Tom Hansen" <thansen at moscow.com>
> To: "Vision 2020" <vision2020 at moscow.com>; <ttrail at house.state.id.us>
> Sent: Tuesday, January 23, 2007 5:41 AM
> Subject: [Vision2020] The IACI and Personal Property Tax
>
>
>> Rep. Trail -
>>
>> I read somewhere at about 4:56 this morning that the IACI (Idaho
>> Association
>> of Commerce and Industry) is campaigning to eliminate personal property
>> tax.
>> I am assuming they mean personal real property (as in land, and not your
>> kitchen toaster).
>>
>> Two questions:
>>
>> 1)  What is the likelihood of this ever becoming reality (hopefully not)?
>>
>> 2)  What is your take on the IACI?
>>
>> Thanks,
>>
>> Tom Hansen
>> Moscow, Idaho
>>
>> "If I wanted to overhear every tedious scrap of brain static rattling
>> around
>> in your head, I'd read your blog."
>>
>> - Bill Maher
>>
>>
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>
>
>
>
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