David Hendley on wed 7 oct 98
Yes, the rule is the same in Texas.
Businesses with commercial electric rates have to pay sales
tax, BUT if the electricity is used to produce the product
(such as an electric kiln to fire pottery) no tax is due.
Electricity used for lighting, heat, etc. is still taxable.
David Hendley
Maydelle, Texas
At 09:10 AM 10/6/98 EDT, you wrote:
>----------------------------Original message----------------------------
>This is a NEAT plan, I'll have to work on it! ALSO for anyone in the same
>predicament, look into the sales tax exemption. I'm in NY and it looks as
>though the electricity is exempt and I may be able to apply for a refund for
>sales tax on the electricity that I've paid over the last year or so. YIPEE
>kim
>
>At 03:48 PM 10/3/98 EDT, you wrote:
>>----------------------------Original message----------------------------
>>Hey Kim,
>>When I used to have to deal with a "demand meter",
>>we used to try to time firings so they would all fall in the
>>same month (not calendar month, but the electric co.'s
>>month).
>>
>>So it would be: make a bunch of work for a month, then
>>right after the meter was read, fire like crazy for the next
>>month, then no firings for the next month, and so on.
>>Of course, Christmas season or something else urgent
>>would sometimes come along and we couldn't wait, but
>>usually it was not a problem.
>>
>>Also, be sure you don't have both your kilns going at
>>the same time, to make the demand meter go even higher!
>>
>>David Hendley
>>Maydelle, Texas,
>>where there is no such thing as a demand meter.
>>
>>
>>
>>At 01:27 PM 10/2/98 EDT, you wrote:
>>>----------------------------Original message----------------------------
>>>>
>>>>
>>>>Hi all,
>>>>just made a business decision that I hope is a good one. Got a good deal
>>>on a barely used electric kiln that is about twice the size of either of my
>>>other 2. traded in one of mine towards it. the kink in the decision
may be
>>>the extra draw on my demand meter. I'm stuck with commercial rates. I
>>>still think I may come out ahead by being able to fire SO much more at one
>>>time. = less loads to run per month but the extra draw will cost me $33.
>>>more per month. i'm hoping for less kw hours. time will tell.
>>>>kim
>>>>
>>>
>>
>>
>
tmartens on fri 9 oct 98
This interested me.......somehow I missed the original query. We pay
sales tax on everything here, private home electricity,no refund or
cut in the tax for producing pots for selling, doctors
bills,garden services, you name it, we pay sales tax on it. Is this the case
in most places?
Toni, South Africa
----------------------------Original message----------------------------
Yes, the rule is the same in Texas.
Businesses with commercial electric rates have to pay sales
tax, BUT if the electricity is used to produce the product
(such as an electric kiln to fire pottery) no tax is due.
Electricity used for lighting, heat, etc. is still taxable.
David Hendley
Maydelle, Texas
At 09:10 AM 10/6/98 EDT, you wrote:
>----------------------------Original message----------------------------
>This is a NEAT plan, I'll have to work on it! ALSO for anyone in the same
>predicament, look into the sales tax exemption. I'm in NY and it looks as
>though the electricity is exempt and I may be able to apply for a refund for
>sales tax on the electricity that I've paid over the last year or so. YIPEE
>kim
>
>At 03:48 PM 10/3/98 EDT, you wrote:
>>----------------------------Original message----------------------------
>>Hey Kim,
>>When I used to have to deal with a "demand meter",
>>we used to try to time firings so they would all fall in the
>>same month (not calendar month, but the electric co.'s
>>month).
>>
>>So it would be: make a bunch of work for a month, then
>>right after the meter was read, fire like crazy for the next
>>month, then no firings for the next month, and so on.
>>Of course, Christmas season or something else urgent
>>would sometimes come along and we couldn't wait, but
>>usually it was not a problem.
>>
>>Also, be sure you don't have both your kilns going at
>>the same time, to make the demand meter go even higher!
>>
>>David Hendley
>>Maydelle, Texas,
>>where there is no such thing as a demand meter.
>>
>>
>>
>>At 01:27 PM 10/2/98 EDT, you wrote:
>>>----------------------------Original message----------------------------
>>>>
>>>>
>>>>Hi all,
>>>>just made a business decision that I hope is a good one. Got a good deal
>>>on a barely used electric kiln that is about twice the size of either of my
>>>other 2. traded in one of mine towards it. the kink in the decision
may be
>>>the extra draw on my demand meter. I'm stuck with commercial rates. I
>>>still think I may come out ahead by being able to fire SO much more at one
>>>time. = less loads to run per month but the extra draw will cost me $33.
>>>more per month. i'm hoping for less kw hours. time will tell.
>>>>kim
>>>>
>>>
>>
>>
>
David Hendley on mon 12 oct 98
Toni, every state in the U. S. is different, and the tax rules
vary greatly.
Just like anything that politicians get their hands on, our
sales tax rules in Texas are complicated to the point of
absolutely silly hair-splitting.
In a pottery shop, sales tax would not be paid on electricity used
directly in producing the product. I guess that would include
pug mill, potter's wheel, kiln, etc. Electricity used for any
other purpose whould be taxed. Lights and heat are taxed, even
though you couldn't make any pottery in the dark in a freezing
shop.
How do you 'divide' the taxable and non-taxable electricity?
I don't know. I guess you could try to make reasonable estimations,
but most people probably just pay the tax since it's on the bill.
Another funny example:
As treasurer of our little community water company, I know that
sales tax is not due on electricity used to pump water from the ground.
Once it's above ground, however, the electricity used for pressure
pumps or circulating pumps is taxable.
Besides a state sales tax, a city, county, mass transit, hospital
district, and/or crime prevention district sales tax can be added
to the basic rate.
This means that I have a hundred page, or close to it, book
listing all areas of the state, and when going to an art fair
I must look up where I'm going to determine how much
sales tax to collect.
Sheesh, I didn't study pottery and go into business to be
a tax collector!
No sales tax is paid on transactions when the goods are shipped
to an individual in another state, as long as the company
has no facilities in the other state.
With the tremendious increase in mail-order and internet
business, the politicians are trying to figure out a way to get some
of that money. This could get really complicated!
David Hendley
Maydelle, Texas
At 08:34 AM 10/9/98 EDT, you wrote:
>----------------------------Original message----------------------------
>This interested me.......somehow I missed the original query. We pay
>sales tax on everything here, private home electricity,no refund or
>cut in the tax for producing pots for selling, doctors
>bills,garden services, you name it, we pay sales tax on it. Is this the case
>in most places?
>Toni, South Africa
>
>----------------------------Original message----------------------------
>Yes, the rule is the same in Texas.
>Businesses with commercial electric rates have to pay sales
>tax, BUT if the electricity is used to produce the product
>(such as an electric kiln to fire pottery) no tax is due.
>Electricity used for lighting, heat, etc. is still taxable.
>
>David Hendley
>Maydelle, Texas
>
>
>
>At 09:10 AM 10/6/98 EDT, you wrote:
>>----------------------------Original message----------------------------
>>This is a NEAT plan, I'll have to work on it! ALSO for anyone in the same
>>predicament, look into the sales tax exemption. I'm in NY and it looks as
>>though the electricity is exempt and I may be able to apply for a refund for
>>sales tax on the electricity that I've paid over the last year or so. YIPEE
>>kim
>>
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