There are no worrisome loopholes. You just don't understand how retail businesses work with sales and use taxes.
As I had mentioned earlier, if a wholesaler buys a product and doesn't resell it, but instead makes use of it themselves, the tax is still due, but it's referred to as a "Use Tax" rather than a "Sales Tax" because you used it directly rather than sell it to another person. You are in that case the end user, so the tax is due; it's just categorized differently. And if you look at a sales and use tax exemption certificate, you'll see that there are a discrete number of categories that define what is what with respect to what is taxed. There are also checks and balances performed by the revenue departments that are quite good at spotting patterns of fraud between wholesale purchases and retail sales disparities. A business has a valid business license, and a sales and use tax exemption certificate, so that's pretty clear. A new item has not been previously sold at retail, but can be sold and resold as many times as necessary at the wholesale level, and that's pretty universal. A used item isn't a new item under the above definition, so that's pretty straightforward. I hope this helps. Now go and read the book. Respectfully, Adam Phillip Churvis President Productivity Enhancement > -----Original Message----- > From: Gruss Gott [mailto:[EMAIL PROTECTED] > Sent: Monday, January 28, 2008 2:49 PM > To: CF-Community > Subject: Re: CF-Community Presidential Poll > > > Cam wrote: > > Ahh - Then I need to re-read the book. I just pulled it off my > > bookshelf and dusted it off this morning. > > > > I'm too lazy to read the book because nobody that favors this can ever > seem to answer the simple questions. Cam said this: > > "once, at the final point of purchase of new goods and services for > personal consumption. Used items are not taxed. Business-to-business > purchases for the production of goods and services are not taxed." > > Which leads me to ask the same questions: what is new? what is used? > what is "final point of purchase"? > > For example, what stops me from starting my own online TV sales > business and buying wholesale, thus avoiding the tax? Oh, and I'd > like a new car so now I sell cars too. > > Oh, and you say you're too lazy to set up an online business as a tax > shelter? No problem. I'll buy the goods for you and only charge you > half of what the tax would've been. Sweet new business! > > So that's the problem: a zillion loopholes when it comes to defining > "new", "used", and "business". > > And if the answer to that challenge is so complex that I have to read > a book to answer it then how is it any easier than the existing tax > which I also have to read a book to understand? > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:252228 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
