I have a sales tax issue that I need resolved....

[ultrastealth]

I had two gun barrels fluted by a gunsmith. He charged me sales tax and claims that it is a taxable service. I didn't think that any service was taxable in Texas. I don't get taxed for labor on auto service, why would I for gun service? Any information would be very much appreciated.

[Charles]

I'm required to charge sales tax for my labor dollars.

It's my understanding that every trade is different when it comes to sales tax for labor.

[Artos]

some services are taxed and others are not...it's all up to the state.

When I got my ffl, I called and specifically asked about the 4473 service or receiving a gun for someone. They said this service is not to be taxed.

Dry Cleaning requires tax or the state would never see a penny....I'm not going to assume about gunsmithing so cannot answer your question.


Do tell about the fluting!!

[Loneaggie]

I'm required to charge sales tax for my labor dollars.

It's my understanding that every trade is different when it comes to sales tax for labor.

^this

Its actually pretty messed up. You're best bet is to look it up for your specific situation; because, what is and isn't doesn't make any sense at all.

[Smart]

From the Texas State sales and Use tax website

Taxable labor
Services employed in manufacturing, assembling, fabricating, or processing products, even when the customer provides the raw materials, tools, or equipment. Examples of taxable labor include developing photographs, producing artwork, printing, calligraphy, custom sewing or tailoring, catering, and assembling products such as toys, furniture, or equipment.

[Smart]

Some more reading........ http://www.window.state.tx.us/taxinf.../tx96_259.html

[Eagles1181]

In my netoworking business if I am working on software it is not taxable (unless I sold it to them), but when working on hardware it is taxable. Pain in the neck (and other places) to keep track of how much time I spend on each.

Eagle

[Snakelover]

Don't feel too bad; even the Texas Comptroller's office is confused. One of their sales tax experts was a guest speaker at one of our trade meetings and was stumped by some of the questions on sales tax.

[Landrover]

sounds like you may be using some "shade tree" vendors as most all trades charge sales tax!

[cosmiccowboy]

Don't feel too bad; even the Texas Comptroller's office is confused. One of their sales tax experts was a guest speaker at one of our trade meetings and was stumped by some of the questions on sales tax.

And trying to get them to give you a written ruling to a technical question? Absolutely hopeless. They just won't do it.

[Snakelover]

sounds like you may be using some "shade tree" vendors as most all trades charge sales tax!

Apparently, there's something to the auto mechanic labor thing, though. Here's the actual numbers from my itemized bill from a reputable national paint and body shop. (You would know the name.)

Parts $2233.26
Body Labor $1620.00
Paint Labor $592.00
Mechanical Labor $202.50
Paint Supplies $444.00
Sublet $344.95
Towing $195.00
2.5% Discount -$140.79

Subtotal: $5490.92
Sales Tax ($2610.33 @ 8.25%) $215.35
Grand Total: $5706.27

As you can see, the $2610.33 that they're charging sales tax on is the parts plus paint supplies discounted 2.5%. (2233.26+444.00= 2677.26 x 97.5%= 2610.33) Therefore, they are not charging sales tax on labor.

On a side note, being the dad of a 19 year old who fails to yield can be very expensive!