Sales Tax Question HELP!!!

[ObjectApparel]

I have to file and annual report for sales taxes in Michigan. I pay a quarterly sales tax, but this is different. Theres a section about use tax. This is the part I am confused about. I buy plenty of supplies for my business, and the use tax seems to suggest I will need to pay taxes on the supplies I buy. This is confusing because I already paid taxes on the supplies I bought. ANY help would be greatly appreciated. I have only had my business open for less than a year so I am a newly when it comes to this tax stuff!! HELP!!

[UmlautGraphics]

When you purchase items to use to resell.. i.e.: fabric and thread that you would make in to a dress, you should have a tax certificate that allows you to buy the items with out paying sales tax. Or whats known as a resale certificate.

You then would collect sales tax on the items sold to people in your state.

The use tax is for items purchased that you would not use to resell as say the dress. But if you bought a sewing maching then there may be a use tax on it.

[ObjectApparel]

So I don't need to pay tax on items that are used in the final product. But items I use to make the clothing I have to pay additional taxes on? Even though I already paid sales tax on the sewing machines, seem ripper, etc?

[StuckOnSilver]

See if an H and R Block counselor can help you. I asked one for help and the counselor even agreed to make a free presentation on this to our local group.

In Albuquerque NM I pay taxes on equipment, shipping envelopes, etc., but not on silver because I will eventually sell it.

Good luck!

[ObjectApparel]

Thats not a bad idea. This tax stuff is confusing and I don't want to mess anything up! I also don't want to pay any more than I have to!!

[PrairiePrimitives]

"Use tax" is often a state's way of collecting sales tax on items you've purchased online from out-of-state sellers ... and you weren't charged sakes tax on.

It's also used to collect sales tax on something you originally bought tax-exempt for your business, but then decided to keep for yourself. Say you buy a bolt of fabric tax-exempt with the intent to use it for your business. Then you use 2 yards of that fabric to mark a skirt, or clothes for your kids. Use tax is probably due on the 2 yards of fabric.

[BloomingOak]

I am also in Michigan. The use tax you need to pay is for things you may have bought online that are not materials used for resale but for tools or other equipment that you did not pay Michigan sales tax on -- say something you bought on Amazon or another online supplier.