Do you charge tax?

[zoogirlee]

I'm just curious to see how many people out there charge tax when they sell chinchillas and/or items. This might be a stupid poll, but I've come across some breeders who do, and some who don't, and it's just purely a curiosity issue.

[Kmammone]

Here you can only charge tax on items sold within the state. I think that's the same everywhere.

[tikitorch]

In Oregon there is no taxes (sales) so if I ever sell a chinchilla than no- I won't.

[zoogirlee]

Well, I've been charged tax for animals and items from some breeders, that's why I was kind of curious...

[heidi55529]

Interesting topic! I've gotten charged tax by some breeders, and others that didn't also.

[CHINCHILDREN]

good question. wonder what the law is. is there a dollar amount that if you exceed anually you are required to collect (and pay) sales tax? this might be a question for our tax person...

[HedgeMom]

It's not a dollar amount, technically if you are a "business" in that you breed with the intent to sell or make things with the intent to sell, you're supposed to register as a business and you would have to charge tax BASED ON YOUR LOCAL TAX LAWS. Those who charge tax have a business license and are doing business the legal way.

What is and isn't taxable varies by state. For example, in Maryland shoes and clothing are taxable. In Pennsylvania they aren't, so I shop for most of my clothes across the PA line or in Delaware, where there is no sales tax. Whether an agriculture product is taxable (which is what a chinchilla is) would be determined locally. If you go to that state to pick up an animal, you'd be taxed. If you buy the animal and have it shipped to you out of state, then you don't play sales tax in the originating state, typically.

Setting up as a business requires that the business file quarterly tax deposits and annual tax reconciliations, which is why most don't bother.

[CHINCHILDREN]

thanks for that hedgemom. live and learn

[renee]

In NY state you need to make more than 500 dollars a year for you to be a business and collect tax. Anything below that the state doesn't care about. That is so you can have a garage sale or sell something in the paper or maybe sell stuff at a craft fair without collecting tax. It makes things easier.
Most likely many people may be breeding chinchilla's as a "hobby" and they are not registered as a business. These people may not collect sales tax. Larger breeders may be registered and will collect tax according to state law.
In know in NY state you have about 2 years to start making a profit. If you don't you lose your business status and all the benefits and deductions associated with a registered business.
-renee

[HedgeMom]

Sorry, I should have said "in this state, it's not a dollar amount".