Sales Tax Exemption

I am glad Pennsylvania makes it simple. For us to claim the sales and use tax exemption all we need to do it fill out a blanket exemption form once with each vendor, using either our MC number or our PA PUC number, no other filings are needed. When obtaining title for vehicles there is a check box on the MV-1 application and a spot for our MC/PUC number, real simple. Now, if our business did include sales that are taxable then we would have to have a sales and use tax collection license and file regular returns, but as a motor carrier or public utility (which is what PA classes motor carriers of public property or passengers as) we do not have to have a sales tax license. Parts, labor, and tangible durable equipment used directly in revenue generating operations of a motor carrier are exempt. Shop tools, shop trucks, corporate cars, and such are not tax exempt, neither are vehicles or equipment not used exclusively in revenue generating service, meaning we can't buy a toy hauler or big dually pickup and claim it is "for the business".

 

does anyone know if there is an exemption in Massachusetts?

 

It's best to call and ask them.

 

I guess I have never had to deal with sales tax on a truck. It is an apportioned piece of equipment and there is no sales tax on that in my state.

 

I just learned that California sucks regarding sales tax. They have about 9% give or take a bit depending on your county and city tax rate, plus fees depending on fuel type and gross weight. My new sales job out here is simple but learning the California rules really suck. I never though about sales tax on motor carrier vehicles, all of the states I have dealt with before exempted motor carriers.

Really crappy part, I have friends and potential customers outside of California, I have to charge them CA tax and they then apply to have it refunded, or I have to do a courtesy delivery through one of our other locations, which costs me money from my commission.

 

I've dropped deals on equipment because the sales dweeb wanted me to pay in state state tax on an out of state purchase, I refuse to pay taxes on things I buy out of state.

 

I agree, and until I began doing business in California I assumed sales delivering outside of a state would not be subject to that state's sales or use tax. Figures California would have to be different! We have a work around, having dealerships in other states allows us to deliver the sold unit through one of those locations, but it means transportation fees to that location, plus a "give" or cut of the sales commission to the other sales manager who ultimately hands off the sold unit to the buyer. I lose about 10% of my commission on out of state sales, but hey a sale is a sale at the end of the day.

 

Well, it is to be expected. CA is so darn broke that they have to get revenue any way they can.

 

I thought it was a federal thing, they could not charge a tax to an out of state purchase.