RE: interesting sales tax question

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I have a clear understanding of the rules and have used this in other busineses.  My family once ran a concession stand in a local park.  We were required to pay sales tax on the food items that we sold.  We simply marked up the price to cover any and all expenses and then backed out the sales tax.   We did this until we sold the business several years later.

Here is what you are missing.  Since you are not charging a sales tax (you are not breaking any law by not charging a sale tax) your only obligation is to remit to the state what is theirs.  You are obligated to pay sales taxes for goods sold in your state.  YOU are NOT obligated to charge your clients for it.  Been there and done that!

By marking up your prices to cost addition costs you solve the problem.  A simple solution.  

Call your local accountant for advice for your problem until there is a software solution.  Ask about gross sales method for paying sales tax.


[quote="Akshara"][quote]There is no problem as long as you remit the sales tax to the state (my background is in accounting). [/quote]

This is not what we were told by local officials.  And to your second solution, yes that's an option... but it's in Colorado it's still illegal.  Here it is against the law to not inform the consumer of the exact amount of tax they are paying at the time of purchase.[/quote]

The comment below is about trying to create and maintain a tax table for every state, city, county, parish in the US.

[quote]Trying to install a script that will do it all is a huge task and really is NOT worth the trouble. [/quote]

[quote="Akshara"]FYI, from the local DRMC tax law ordinance...

[quote]   
 
 (c)     Tax to be shown as separate item. Except as provided in this section, retailers shall add the tax imposed, or the average equivalent thereof, to the purchase price, showing such tax as a separate and distinctive item, and when added, such tax shall constitute a part of such price and shall be a debt from the purchaser to the retailer until paid, recoverable at law in the same manner as other debts.
 
[/quote]

So your solution would be against this ordinance in the city of Denver, CO.[/quote]