Home › Forums › Restaurant Professionals Forum › Restaurant Professionals Forum › State Sales Tax Exempt › RE: State Sales Tax Exempt
It depends on your state. I am not a tax pro, but as I understand it in my state (and I could be wrong, but I have not been fined or arrested), this is the way it goes here. I am not in the food biz but I do run a business. I pay a tax on goods that I CONSUME to run my business. I don’t pay a tax on goods that I buy to resell. I COLLECT a tax (on behalf of the state) on goods that I sell. As an example take a roll of paper towels. If I am buying them to use, I pay a tax. If I am buying them to resell, I don’t. I don’t know about food, because in this state there is no tax on food. BTW, in my state you would owe a tax on that big restaurant equipment. In addition to your federal number (at least in Massachusetts) you need a sales tax ID. In my state the sales tax dept really is there to help you understand the law. You should try yours.