Blanket Tax Exemption

[fargogogo]

Read in a thread about not having to pay sales tax on camera purchase by using the "Blanket Tax Exemption".

Can anyone explain what this is and who can take advantage of it? What situations it applys to?

[Keith Loh]

You might want to mention what locale you are in. All taxes are different.

[Chris Hurd]

Check your local tax laws. Sometimes you're not required to pay sales tax on purchases of components you use to produce items intended for resale. For example, if you buy blank tapes in order to record a program onto them and sell them, you may not have to pay sales tax when you buy those blank tapes. The rules are different from one U.S. state to the next.

[fargogogo]

Thanks. I'll check here.

[Jim Sauza]

Hi Fargo

In most states in the US, if not all, any item that is not for resale to others ( camera, lights, tripod, so forth and so on) you or your company must pay the sales tax if you purchase from a store located in your home state, since you are considered the consumer of this product.

If on the other hand plan to resell these items and do not use them yourself, you may use a tax excempt certificate with you TAX number issued by the taxing authority which you need to obtain before the store your buying equipment from can in your area of the country sell to you and not charge you sales tax since you are not the end user/consumer

If you are in business and make money you might as well get a sales tax number ( more paperwork) but in most cases it will not help you avoid taxes
on equipment you use. At the end of the year you may take a portion of the cost of this equipment off your income taxes as your cost of doing business.
Make sure you see an accountant.

Hope this helps Jim

[Paul Sedillo]

<<<-- Originally posted by Chris Hurd : Check your local tax laws. Sometimes you're not required to pay sales tax on purchases of components you use to produce items intended for resale. For example, if you buy blank tapes in order to record a program onto them and sell them, you may not have to pay sales tax when you buy those blank tapes. The rules are different from one U.S. state to the next. -->>>

Chris,

Doesn't Texas offer Film Makers some sort of break? I recall seeing something on this topic.

[Chris Hurd]

Hi Paul,

I don't recall anything specific but that may be due to a fried brain. If there's a city film commission there in Houston, you might check with them. I know that the state film commission offers substantial incentives to draw large-budget productions to Texas. Plus we're in a right-to-work state, which means you don't have to be unionized to shoot here, But now we're drifting off topic. Regarding tax breaks for little folks, I'm not aware of anything off the top of my head but the blanket tax exemption is a good thing which allows you to buy gear and supplies locally, just like buying from out-of-state without the sales tax, without the hassle of mail order.

[Paul Sedillo]

<<<-- Originally posted by Chris Hurd : Hi Paul,

I don't recall anything specific but that may be due to a fried brain. If there's a city film commission there in Houston, you might check with them. I know that the state film commission offers substantial incentives to draw large-budget productions to Texas. Plus we're in a right-to-work state, which means you don't have to be unionized to shoot here, But now we're drifting off topic. Regarding tax breaks for little folks, I'm not aware of anything off the top of my head but the blanket tax exemption is a good thing which allows you to buy gear and supplies locally, just like buying from out-of-state without the sales tax, without the hassle of mail order. -->>>

Chris,

Thanks for the reply! Ok, semi-off topic - Are you a member of TAF/TP? If so is it a membership that I should look into as new production/design guy?

Thanks,

Paul