Steve
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Businesses do not charge sales tax to defray their tax obligations. Businesses are required to collect and remit sales tax as required by law.
Tax exempt organizations that have retail stores are required to collect and remit sales tax like any other business. |
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v b
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Sales Tax and Income tax are two different things.
They are selling items as a retail establishment, they are covered by the sales and use tax rules.
And no, the store doesn't get to use the sales tax for their own use--the pass the money as is to the taxing authority! |
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Judy1
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You are a little confused about tax exempt organizations, and about how sales tax works. Sales tax is owed to the state - the seller only collects it, and then pays what is collected to the state. The organization doesn't get to keep the tax.
A tax exempt organization doesn't pay income tax, and usually not property tax. But for sales tax, they are just like anyone else. If they are sellling something taxable in that state, they have to collect the sales tax just like any other seller, and then have to send it on to the state. |
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bostonianinmo
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They are not paying the sales tax, YOU are. They only act as agent for the government in collecting the tax.
Sales taxes collected are paid over in full to the governmnet, they are not the property of the business that collects them and are not used for any business purpose or to "defray" any business costs, including other taxes due. |
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wartz
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They don't charge sales tax, they collect sales tax as required by the state. |
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The HEARSE DRIVER
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They don't pay income tax on their profit to the state or federal government, but must collect sales tax which is passed through to the state, county, and/or city. |
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busymomkaren
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Tax charged on items sold is called sales tax. 100% of that tax money goes to the local and state government. the business does not keep even one penny of it. Anyone selling to the public is required by law to charge sales tax. Whether they are tax exempt means if they pay income tax on what they earn from profit on merchandise sold. Two total different issues. |
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hamrrfan
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This may vary from state to state.
A retail outlet, in this case the Salvation Army, acts as an agent for the state when it collects sales tax. They do not pay a tax on the goods that they acquire for resale. The end-user (customer) pays the sales tax. The seller has to keep records to show that they collected the correct amount of taxes.
A charity such as the Salvation Army is exempt from paying taxes on what money they take in, as opposed to a regular business that has to pay tax on profits. That is the meaning of tax exempt in your question. |
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Paladin
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they don't have to pay taxes on their profits, but do have to on their sales.
There are lots of types of taxes |
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