Gregory D Lamont on sat 3 jul 99
One of my consignment accounts, a local coffee bar that has been selling my
mugs and other coffee-related wares, has stopped collecting sales tax on
slaes of my mugs. She said her accountant told her it is my responsibility
to pay the tax as the mugs are still my property. I was under the
impression that, as the selling agent, she is responsible for collecting
the tax at the time of sale. My other consignment account collects and
pays the sales tax. Who's correct?
Thanks for your advice!
Greg
Greg Lamont
gdlamont@iastate.edu
http://www.ourwebpage.net/greglamont/
3011 Northwood Drive
Ames, IA 50010-4750
(515) 233-3442
Wendy Hampton on mon 5 jul 99
I think that collecting sales tax is part of the commission that you pay the
shop. I know of no outlet that does not collect their own sales tax. In the
state of Washington, if the retail store does not collect tax and you did not
pay it they would be ultimately responsible for it because they were the
"seller."
Wendy
Ray Aldridge on mon 5 jul 99
At 09:38 AM 7/3/99 EDT, you wrote:
>----------------------------Original message----------------------------
>One of my consignment accounts, a local coffee bar that has been selling my
>mugs and other coffee-related wares, has stopped collecting sales tax on
>slaes of my mugs. She said her accountant told her it is my responsibility
>to pay the tax as the mugs are still my property. I was under the
>impression that, as the selling agent, she is responsible for collecting
>the tax at the time of sale. My other consignment account collects and
>pays the sales tax. Who's correct?
Talk about shameless leg-yanking. I'm not a lawyer, but if this were the
situation in any American jurisdiction, I would be astounded.
Of course, it is her responsibility to collect and pay the tax. In the
first place, how would it even be possible for you to collect the tax from
the buyers? Does she propose to give you the names of the customers and
let you look them up and demand the tax?
Do you need the account? If not, call the state dept. of revenue, and tell
them what she told you. They'll send someone in to buy a mug, and see if
she's really not collecting the tax, as she is by law required to do. In
Iowa, is coffee (and other coffee bar goodies) subject to sales tax? If
so, it strikes me as unlikely that she is singling out your wares at the
register for a tax exemption.
Of course, I could be completely wrong, and if so, the state will tell you.
But I'd be less surprised to find the sun rising in the west tomorrow.
Ray
Paul Lewing on mon 5 jul 99
Gregory D Lamont wrote:
>
> ----------------------------Original message----------------------------
> One of my consignment accounts, a local coffee bar that has been selling my
> mugs and other coffee-related wares, has stopped collecting sales tax on
> slaes of my mugs. She said her accountant told her it is my responsibility
> to pay the tax as the mugs are still my property. I was under the
> impression that, as the selling agent, she is responsible for collecting
> the tax at the time of sale. My other consignment account collects and
> pays the sales tax. Who's correct?
Greg,
Your other consignment accounts are correct; the coffee bar is wrong.
Sales tax is not something you, the producer, or they, the retailer,
pays. The final retail customer pays it and the seller just collects it
and sends it to the state. On a consignment sale you have no
opportunity to collect that tax from the buyer. Is the coffee bar
collecting sales tax when they sell one of your mugs? If they are, then
they are illegally pocketing that. If they are not, they are violating
the state law. If they think you should be paying it, then they should
be collecing it and sending it to you with your part of the payment.
But no one does it that way. Go tell them they're wrong, and if they
don't believe you, tell them to call the appropriate state agency and
ask them.
Paul Lewing, Seattle
Bob Freitas on mon 5 jul 99
Hello to All,
Have to jump in on this, maybe Iowa handles sales tax different. Here in
California, whoever directly sells must collect sales tax. The tax is charged
to the buyer of the item, the seller must report it. It doesn't matter who
actually owns the item before it is sold.
If this is the case where you are, it might be wise to take your work
elsewhere. And the shop owner might want to find another accountant!
Just my opinion,
Bob
Gregory D Lamont wrote:
> ----------------------------Original message----------------------------
> One of my consignment accounts, a local coffee bar that has been selling my
> mugs and other coffee-related wares, has stopped collecting sales tax on
> slaes of my mugs. She said her accountant told her it is my responsibility
> to pay the tax as the mugs are still my property. I was under the
> impression that, as the selling agent, she is responsible for collecting
> the tax at the time of sale. My other consignment account collects and
> pays the sales tax. Who's correct?
> Thanks for your advice!
> Greg
> Greg Lamont
> gdlamont@iastate.edu
> http://www.ourwebpage.net/greglamont/
>
> 3011 Northwood Drive
> Ames, IA 50010-4750
> (515) 233-3442
Elias Portor on wed 7 jul 99
I think your consignment person is wrong, check with your state tax
department. If she makes the sale, she must put the sales tax on. eportor
Gregory D Lamont wrote:
> ----------------------------Original message----------------------------
> One of my consignment accounts, a local coffee bar that has been selling my
> mugs and other coffee-related wares, has stopped collecting sales tax on
> slaes of my mugs. She said her accountant told her it is my responsibility
> to pay the tax as the mugs are still my property. I was under the
> impression that, as the selling agent, she is responsible for collecting
> the tax at the time of sale. My other consignment account collects and
> pays the sales tax. Who's correct?
> Thanks for your advice!
> Greg
> Greg Lamont
> gdlamont@iastate.edu
> http://www.ourwebpage.net/greglamont/
>
> 3011 Northwood Drive
> Ames, IA 50010-4750
> (515) 233-3442
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