Since 1997
Since 1997
As of January 2024 EpinkColors.com has joined the Texsource family! We couldn't be more proud to welcome Epink customers to the next level of screen printing products and support, with a continual focus on the service you have come to expect.
The Same Epink Service and Support You Have Come To Expect, Now Backed By Texsource!
While state and federal tax rules can be complex, many screen printers can save hard-earned cash by understanding and ensuring their tax-exempt status.
While most states and some municipalities require consumers to pay sales tax when buying goods and services, some businesses can skip paying those sales taxes on items purchased for reselling to consumers or when buying items that are used to produce products like shirts for clients.
Texsource makes it easy to certify tax-exempt status. Businesss owners simply print and fill out their state-specific form then submit them to Tina Hamilton at tina@texsourceonline.com. Once completed and received we will mark your online account as 'tax exempt'. For any questions related to your account or sales tax contact customer service at 1-888-344-4657.
HOW DO SALES TAXES WORK?
States and municipalities may tax the sale of goods and services and, for states that do, the tax rate may vary depending on the kind of item purchased along with when and where it's purchased.
Montana has no state sales tax, for instance, but gives municipalities the option to tack a charge on purchases. South Carolina collects a statewide sales and use tax of 6 percent, according to the state's revenue department, but the total percentage can be as high as 9 percent depending upon the county or municipality in which purchases are made.
When selling goods, businesses are responsible for charging buyers the appropriate sales tax, submitting those collections to the right state revenue department, and keeping track of those records.
States generally don't charge sales taxes on the supplies and gear businesses buy to produce products for consumers. Businesses provide sellers with state-issued forms certifying tax-exempt status before purchasing. Sellers are required to keep copies of these certifications. In the event of a return, applicable sales taxes are non-refundable.
WHICH SALES TAX EXEMPTIONS ARE AVAILABLE TO SCREEN PRINTERS?
Sales tax exemptions exist for manufacturers and resellers. Screen printers can use both to their advantage.
The inks, additives, adhesives, foil transfers and any other items printed on a shirt that is then sold at retail are covered by resale exemptions. A manufacturer's exemption is applied to equipment like dryers, presses, washout booths or exposure units necessary to print products for consumers.
WHAT DO SCREEN PRINTERS NEED TO DO TO APPLY FOR SALES TAX EXEMPT STATUS?
Filing for sales tax-exempt status is easy - you'll (1) complete state-specific forms and (2) provide them to sellers. It's as simple as that. The details of filing can vary by state, though, so it pays to do your research here.
Some states require businesses to file both a manufacturer and resale exemption certificate, while others offer a streamlined process that covers both with a single filing.
Tennessee provides businesses with a Certificate of Resale when it registers for a sales and use tax account with the Tennessee Department of Revenue. Businesses then use that to complete a blanket certificate, covering both manufacturer and resale exemptions, which is then provided to vendors.
Virginia, by contrast, requires businesses to provide vendors with specific certificates covering manufacturing and resale.
At least 24 states also allow businesses to use the Streamlined Sales Tax Certificate of Exemption to provide sellers with a valid resale tax exemption certificate.
You'll also want to check to see how often your business will need to refile a tax exemption certificate. In many states, like Tennessee, filings remain valid for the life of a business. Others require you to reapply annually.
HOW DO I FILE MY SALES TAX EXEMPTION CERTIFICATES WITH TEXSOURCE?
Texsource makes it easy to certify tax-exempt status. Businesss owners simply fill out their state-specific form and submit them to Tina Hamilton at tina@texsourceonline.com. Once completed and received we will mark your online account as 'tax exempt'. For any questions related to your account or sales tax contact customer service at 1-888-344-4657.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.