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Post by spindrift on Jul 6, 2018 19:15:56 GMT -6
I’m trying to get a master done but the accounting dept and project manager are insisting on charging me NJ sales tax on the mastering invoice. They said they have to charge it unless I fill out this resale certificate which requires me to register my biz with the state of NJ! I think they are in error. I’m happy to pay top dollar to have my tracks mastered by their engineer but I’m not willing to pay their state a tax. What is this? I’ve bought a lot of gear and services over the internet and NEVER have had to pay sales tax. In fact, this document and the flow-chart below seem to indicate that the mastering house is in error: www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj10.pdfHas anyone encountered this before? Thanks, Keith |
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Post by indiehouse on Jul 6, 2018 19:38:40 GMT -6
Is this related to the new requirement to collect sales tax for online purchases?
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Post by trakworxmastering on Jul 6, 2018 20:32:08 GMT -6
Looks like changes to NJ state tax law: For taxable sales on and after January 1, 2018, sellers must collect and remit Sales Tax at the rate of 6.625% except under specific circumstances provided for by law. Sales Tax is levied on: Tangible personal property; Specified digital products; and Enumerated services. Maybe mastering falls under "enumerated services"? www.state.nj.us/treasury/taxation/ratechange/su-overview.shtml |
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Post by trakworxmastering on Jul 6, 2018 20:32:59 GMT -6
That's gonna hurt their business!
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Post by spindrift on Jul 6, 2018 20:59:24 GMT -6
Thanks Justin, you point out a rate change effective January 2018, but the PDF with the flow-chart I posted above seems to still be valid and indicate that sales tax should not be charged on services/goods delivered outside of the state.
I know that the new law that was recently decided only applied to one of the Dakotas but I guess it could be the case. These guys deal with major labels all the time (and a major label might go through the hoops to get a reseller cert from NJ) so I can’t be the only one curious about this anomaly.
I don’t want to tell them they’re full of it, but without some solid proof that I owe NJ tax, I’m not keen on paying it. I guess I’ll have to ask to talk to their accounting dept or look elsewhere (or just pay it but that really rubs me the wrong way).
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Post by kcatthedog on Jul 6, 2018 21:03:01 GMT -6
When I had work done on my delta in Tennessee I was charged state taxes and I live in Canada then had to pay tax on tax  ! |
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Post by spindrift on Jul 6, 2018 21:04:05 GMT -6
Reading the correspondence and the reseller cert a bit closer, it seems they just need the certificate on file as a paperwork step. And it looks like I can use my Federal EIN vs. having to register with NJ proper, so this might be much-ado-about-nothing.
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Post by mrholmes on Jul 7, 2018 2:03:56 GMT -6
Looks like changes to NJ state tax law: For taxable sales on and after January 1, 2018, sellers must collect and remit Sales Tax at the rate of 6.625% except under specific circumstances provided for by law. Sales Tax is levied on: Tangible personal property; Specified digital products; and Enumerated services. Maybe mastering falls under "enumerated services"? www.state.nj.us/treasury/taxation/ratechange/su-overview.shtml6.6% I would pay it with love.... Here in Europe its ø 20% in any State. I changed my mind on it. States need to charge taxes to providee public services such as schools, public transport, public health care etc. In my book paying fair taxes is a good thing and 6% sounds fair to me. |
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Post by drbill on Jul 7, 2018 9:59:12 GMT -6
Looks like changes to NJ state tax law: For taxable sales on and after January 1, 2018, sellers must collect and remit Sales Tax at the rate of 6.625% except under specific circumstances provided for by law. Sales Tax is levied on: Tangible personal property; Specified digital products; and Enumerated services. Maybe mastering falls under "enumerated services"? www.state.nj.us/treasury/taxation/ratechange/su-overview.shtml6.6% I would pay it with love.... Here in Europe its ø 20% in any State. I changed my mind on it. States need to charge taxes to providee public services such as schools, ptubluc transport, public health care etc. In my book paying fair taxes is a good thing and 6% sounds fair to me. 6% (normally 8.5-10% these days) sales taxes + Fed Income tax + State Income tax + Local Municipality Income taxes + Property taxes + Car taxes + Gasoline taxes + Social Security taxes + Dog License taxes + Court fine taxes + Employer Medicare taxes + Water Management taxes + 911 service taxes + highway access taxes + Inheritance taxes + Inventory taxes + estate taxes + Various "fees and permits" which are for all intents and purposes taxes, and of course SALES taxes which were discussed, and are usually around 8.5-10% these days depending on location. Need I go on? There's another 80 or so taxes that Americans pay every year. Believe me, we don't need VAT taxes - we do it with a thousand little cuts - not one big one. We DO pay our fair share. We had a freaking revolution because of taxes that are far LESS than what we pay today. |
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ericn
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Post by ericn on Jul 7, 2018 11:16:19 GMT -6
Just pay it, with the new court decision you will probably be paying more in the future. If your worried ask before you commit from now on.
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Post by notneeson on Jul 7, 2018 11:22:02 GMT -6
When I had work done on my delta in Tennessee I was charged state taxes and I live in Canada then had to pay tax on tax ! To bring this round to mastering— I have hired Brad Blackwood a few times, he's in Memphis and does not charge sales tax that I recall. Isn't that the case, TN peeps? |
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Post by notneeson on Jul 7, 2018 11:23:20 GMT -6
I’m trying to get a master done but the accounting dept and project manager are insisting on charging me NJ sales tax on the mastering invoice. They said they have to charge it unless I fill out this resale certificate which requires me to register my biz with the state of NJ! I think they are in error. I’m happy to pay top dollar to have my tracks mastered by their engineer but I’m not willing to pay their state a tax. What is this? I’ve bought a lot of gear and services over the internet and NEVER have had to pay sales tax. In fact, this document and the flow-chart below seem to indicate that the mastering house is in error: www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj10.pdfHas anyone encountered this before? Thanks, Keith Did they quote a price initially that omitted sales tax? |
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Post by swurveman on Jul 7, 2018 15:32:49 GMT -6
6.6% I would pay it with love.... Here in Europe its ø 20% in any State. I changed my mind on it. States need to charge taxes to providee public services such as schools, ptubluc transport, public health care etc. In my book paying fair taxes is a good thing and 6% sounds fair to me. 6% (normally 8.5-10% these days) sales taxes + Fed Income tax + State Income tax + Local Municipality Income taxes + Property taxes + Car taxes + Gasoline taxes + Social Security taxes + Dog License taxes + Court fine taxes + Employer Medicare taxes + Water Management taxes + 911 service taxes + highway access taxes + Inheritance taxes + Inventory taxes + estate taxes + Various "fees and permits" which are for all intents and purposes taxes, and of course SALES taxes which were discussed, and are usually around 8.5-10% these days depending on location. Need I go on? There's another 80 or so taxes that Americans pay every year. Believe me, we don't need VAT taxes - we do it with a thousand little cuts - not one big one. We DO pay our fair share. We had a freaking revolution because of taxes that are far LESS than what we pay today. In fairness, couldn't you make Louder Than Liftoff an S Corporation, or some other form of Pass Trhough Entity, and get the new tax law's additional depreciation deduction off of your taxable income along with 20% tax cut right off your taxable income. Seems to me you were eligible for a huge tax cut that most people didn't get. |
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Post by spindrift on Jul 7, 2018 16:19:19 GMT -6
I’m trying to get a master done but the accounting dept and project manager are insisting on charging me NJ sales tax on the mastering invoice. They said they have to charge it unless I fill out this resale certificate which requires me to register my biz with the state of NJ! I think they are in error. I’m happy to pay top dollar to have my tracks mastered by their engineer but I’m not willing to pay their state a tax. What is this? I’ve bought a lot of gear and services over the internet and NEVER have had to pay sales tax. In fact, this document and the flow-chart below seem to indicate that the mastering house is in error: www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj10.pdfHas anyone encountered this before? Thanks, Keith Did they quote a price initially that omitted sales tax? It’s part of the quote that I was questioning. Again, re-reading everything, it appears to be a simple paperwork step to avoid it. Accounting CYA. |
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Post by drbill on Jul 7, 2018 17:05:03 GMT -6
6% (normally 8.5-10% these days) sales taxes + Fed Income tax + State Income tax + Local Municipality Income taxes + Property taxes + Car taxes + Gasoline taxes + Social Security taxes + Dog License taxes + Court fine taxes + Employer Medicare taxes + Water Management taxes + 911 service taxes + highway access taxes + Inheritance taxes + Inventory taxes + estate taxes + Various "fees and permits" which are for all intents and purposes taxes, and of course SALES taxes which were discussed, and are usually around 8.5-10% these days depending on location. Need I go on? There's another 80 or so taxes that Americans pay every year. Believe me, we don't need VAT taxes - we do it with a thousand little cuts - not one big one. We DO pay our fair share. We had a freaking revolution because of taxes that are far LESS than what we pay today. In fairness, couldn't you make Louder Than Liftoff an S Corporation, or some other form of Pass Trhough Entity, and get the new tax law's additional depreciation deduction off of your taxable income along with 20% tax cut right off your taxable income. Seems to me you were eligible for a huge tax cut that most people didn't get. LTL is Brad McGowan's company. I'm sure Brad IS incorporated. I'm speaking from an average Joe's perspective.....not a corporation. |
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Post by notneeson on Jul 8, 2018 10:16:02 GMT -6
Did they quote a price initially that omitted sales tax? It’s part of the quote that I was questioning. Again, re-reading everything, it appears to be a simple paperwork step to avoid it. Accounting CYA. Good to know it wasn’t a “gotcha” fee after commiting. (Maybe rewatching the Sopranos is stoking my anxieties here). Speaking of taxes, my neighbor fed exed a name ME 1k in cash to get his bands album mastered! (Wasn’t in NJ though). |
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Post by swurveman on Jul 8, 2018 10:30:13 GMT -6
In fairness, couldn't you make Louder Than Liftoff an S Corporation, or some other form of Pass Trhough Entity, and get the new tax law's additional depreciation deduction off of your taxable income along with 20% tax cut right off your taxable income. Seems to me you were eligible for a huge tax cut that most people didn't get. LTL is Brad McGowan's company. I'm sure Brad IS incorporated. I'm speaking from an average Joe's perspective.....not a corporation. When this new tax cut doesn't pay for itself and doesn't trickle down, Joe is going to pay even more as state's scramble for revenue. Nationally, we will either pay more to finance the national debt, or cut program's that Joe is a lot more likely to use than me. And while my S Corporation tax cut has no expiration date, Joe's is 7 years. It's baffling to me, but if Joe wants to keep making my life better, and his worse, that's his business. I don't understand it, but it is what it is. |
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ericn
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Post by ericn on Jul 8, 2018 12:08:37 GMT -6
LTL is Brad McGowan's company. I'm sure Brad IS incorporated. I'm speaking from an average Joe's perspective.....not a corporation. When this new tax cut doesn't pay for itself and doesn't trickle down, Joe is going to pay even more as state's scramble for revenue. Nationally, we will either pay more to finance the national debt, or cut program's that Joe is a lot more likely to use than me. And while my S Corporation tax cut has no expiration date, Joe's is 7 years. It's baffling to me, but if Joe wants to keep making my life better, and his worse, that's his business. I don't understand it, but it is what it is. I don’t know those tariffs might balance it all out🤔 |
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Post by trakworxmastering on Jul 8, 2018 12:36:16 GMT -6
Tariffs are taxes. Average Joe pays the tariffs in the end. Prices will rise, corporations will still make their profits and the Gov't will pocket the tariffs. Joe is the bagholder.
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ericn
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Balance Engineer
Posts: 14,992
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Post by ericn on Jul 8, 2018 12:58:40 GMT -6
Tariffs are taxes. Average Joe pays the tariffs in the end. Prices will rise, corporations will still make their profits and the Gov't will pocket the tariffs. Joe is the bagholder. Must find a sarcasm emoji, so I am not taken seriously. |
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Post by jazznoise on Jul 13, 2018 7:45:15 GMT -6
Fed system seems so complicated. We do pay service rate VAT (same as service tax in practice) here, but it's just down to what country the ME is in. Your company in Ireland is either registered to be able to reclaim Vat or not, and there's advantages and disadvantages to both - mainly with the quantity and cost of book keeping.
The tariff scenario is terrifying and I hope for everyone it de-escalates soon. Look at how the UK is stocking canned goods,the markets are so globalised a trade war is a disaster scenario. Companies like Moog are freaking out right now about it.
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