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> What he also misses: is that if I sell something to another retailer for resale , I don't charge him sales tax on the entire purchase. This is covered in the

• rgbrenner 6y ago
  It doesnt have to be in the same form. It just needs to be an input into the product that will eventually be sold to a consumer, where the sales tax will be charged. For a really clear example of this, many states have a sales tax exception for equipment that will manufacture goods for resale. So in that case, the equipment never even made it into the final product, except by touching the item that was sold. Equipment has a lifetime, and it's consumed by producing items for resale... so it's exempt. If I purchase raw material to turn into a final product, that raw material is sales tax exempt.
  • sumtechguy 6y ago
    The only bit that would be up for taxing would be any profit made from that sale. Buy for 2 dollars sell for 3. Only the 1 dollar profit is in play for taxes. Even then it can be exempt or removed by other items in the tax code. That profit is not part of the sales tax system. It is part of the income tax system.
• deleted 6y ago
  [deleted]