[TheForge] opinions of tax status

[Dave Brown]

At 11:19 12/26/02 -0500, you wrote:
>I figured I'd find out what the opinion is here before I talk to my
>accountant.  When  we sell an item we've forged and/or fabricated
>directly to a customer, are we providing a nontaxable service, or are we
>selling a retail item that we should be collecting state sales tax for?
>I'm just fishing for personal opinions here, and will let my accountant
>be the final word.  I'm new to actually trying to make a living at this,
>and so far, I haven't collected tax on anything, although most of what
>I've sold has been to a retail outlet, so I haven't needed to.  I did do
>some commission work through the Christmas season though, and this was an
>afterthought.
>
>Bob Evarts
>Forging a good life from the raw material of time

You are not providing a nontaxable service, you are selling to the end user 
and should be charging, collecting and reporting the state sales tax.  Your 
labor is an added value to the cost of materials, not a commodity in this 
instance.  The key here is that you are selling an item, not simply your 
labor (which would be subject to federal, state and local income taxes as 
and where applicable in any event).


Dave Brown
Heritage Smithing
Green Bay, WI
ABANA, UMBA, GoM, MODA, ARG