CAUTION TENNESSEE BUILDERS!!

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Daddy
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Re: CAUTION TENNESSEE BUILDERS!!

Post by Daddy »

Amen

NW Trout
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Re: CAUTION TENNESSEE BUILDERS!!

Post by NW Trout »

jacquesmm wrote:I am not going to debate if abusive government is named socialism or fascism or statism, that debate belongs in our "Bilge" section but we can all agree that this is an example of government out of control.
I agree completely that this is an example of abusive or ineffective or overly complicated government. And that this discussion should be moved to the Bilge for further commenting.

The point I was trying to make is calling it something it is not is a mistake. I find that too often our media, pundits and elected officials reach for easy terms to try and pigeon hole an issue and make it more readily digestible as either a "Good" or "Bad" thing for their base audience - and in doing so either make completely incorrect but politically expedient statements rather than really explain in simple terms what is right, wrong or otherwise their problem with an issue/topic.

Call it what it is. Labels are easy to understand but sometimes wrong or overly simplify when a little explanation effort would be preferred.
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Re: CAUTION TENNESSEE BUILDERS!!

Post by UncleRalph »

A similar situation exists in Maryland. When I registered my boat I had to pay a 6% tax on the value of all the materials in the boat, even though I had receipts to show I paid the 6% Maryland sales tax on the purchase of the materials. I argued that I had already paid the "Sales Tax" when I bought the materials and they said this was not a sales tax, but a "Use Tax".

The ridiculous thing is - if I was indeed a commercial boat builder I would not have had to pay the sales tax on the purchase of the materials, because they would have been purchased for resale, and therefor exempt form sales tax. So yes the home builder is indeed double taxed. The state got 12% for every dollar I spent!

Ralph

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Re: CAUTION TENNESSEE BUILDERS!!

Post by Daddy »

Well that sucks Ralph. You should have lost a few of those receipts :D

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Re: CAUTION TENNESSEE BUILDERS!!

Post by jacquesmm »

UncleRalph wrote:A similar situation exists in Maryland. When I registered my boat I had to pay a 6% tax on the value of all the materials in the boat, even though I had receipts to show I paid the 6% Maryland sales tax on the purchase of the materials. I argued that I had already paid the "Sales Tax" when I bought the materials and they said this was not a sales tax, but a "Use Tax".

The ridiculous thing is - if I was indeed a commercial boat builder I would not have had to pay the sales tax on the purchase of the materials, because they would have been purchased for resale, and therefor exempt form sales tax. So yes the home builder is indeed double taxed. The state got 12% for every dollar I spent!

Ralph
In Florida, I am certain ( we were audited for sales tax and use tax last month) that you pay either one of them but not the two.
I can't think why it would be different in other states.

It may be, tax laws don't have to make sense.
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Cracker Larry
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Re: CAUTION TENNESSEE BUILDERS!!

Post by Cracker Larry »

I would lose a LOT of those receipts :lol: How do they know how many pieces of what it takes :doh:
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gstanfield
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Re: CAUTION TENNESSEE BUILDERS!!

Post by gstanfield »

hell, I built it outta old sheets of paneling I ripped out of the basement of my house...as far as I'd tell them :wink:
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Re: CAUTION TENNESSEE BUILDERS!!

Post by frazoo »

jacquesmm wrote:
UncleRalph wrote:A similar situation exists in Maryland. When I registered my boat I had to pay a 6% tax on the value of all the materials in the boat, even though I had receipts to show I paid the 6% Maryland sales tax on the purchase of the materials. I argued that I had already paid the "Sales Tax" when I bought the materials and they said this was not a sales tax, but a "Use Tax".

The ridiculous thing is - if I was indeed a commercial boat builder I would not have had to pay the sales tax on the purchase of the materials, because they would have been purchased for resale, and therefor exempt form sales tax. So yes the home builder is indeed double taxed. The state got 12% for every dollar I spent!

Ralph
In Florida, I am certain ( we were audited for sales tax and use tax last month) that you pay either one of them but not the two.
I can't think why it would be different in other states.

It may be, tax laws don't have to make sense.
When I registered my last build it was an either/or situation. Provide receipts showing you paid tax on the materials or an official wold assign a value to the boat and you pay taxes on that. I provided receipts and had no problems. Sounds like more training needing in some areas and new officials needed in others.


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Re: CAUTION TENNESSEE BUILDERS!!

Post by peter-curacao »

Alternitive? :?
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Re: CAUTION TENNESSEE BUILDERS!!

Post by SmokyMountain »

Here is a responce a guy from work got when he e-mailed the Tennessee revenue service:
Good morning,



Unfortunately, we don't always see both sidesof a story when it is reflected in the media.



Anyone who purchases materials for use in anymanner in Tennessee is responsible for paymentof the Tennesseesales or use tax due on those materials. Once done, that satisfies thepurchaser's sales or use tax requriement on those materials.



If, for instance, I purchase $50 in materials amy local home products store (paying the sales tax at time ofpurchase) and use those materials to build a cabinet, valued at $500, formy own use, I've satisfied the tax requirement. I don't owe any additional taxon the $450 difference in value between the raw materials and the finishedproduct.



A person building a boat for that person'sown use would fall into this same scenario. The difference is that theboat builder must register the boat with TWRA before it can be used. Thecounty clerk must, by law, ensure that the boat builder has paid the applicablesales or use tax due before the boat can be registered.



So, if the boat builder does not have thesales receipts or other documentation that the tax was paid on the materialswhen they were purchased, the county clerk must assume that tax has notbeen paid. Documentation is everything. The tax would be assessed on the fairmarket value or appraised value of the boat.



If the boat builder used wood cut from thebuilder's own property, there would not be any sales or use tax due on thatwood. The boat builder would need to provide a affidavit to the county clerkindicating that the builder was the producer of the wood, which would beexempt from sales or use tax under Tenn. Code Ann. Section 67-6-301.



The same would also apply to a car enthusiastthat built his or her own car and then attempted to title andregister the car in Tennessee.In the absence of documentation that tax was paid on the materials used,the vehicle would be taxed by the county clerk at the fair market orappraised value of the vehicle.



John Harvey, Taxpayer Education





Any opinion from tax law or regulationsgiven herein is believed to be a correct interpretation. However, the opinionscannot constitute a revenue or letter ruling pursuant to the provisions ofTenn. Code Ann. Sect. 67-1-109.

I think what happened was that an overzealous tax agent was calling this a guy a dealer when they were really looking for taxes for materials ...... Looks like I'll be getting all my receipts together. I sure as heck not going to get it appraised and get my time / labor taxed !!! :x The thing that really pisses me off is that the vast majority of people who buy stuff out of state don't get taxed (and rightly so) and I am.... no equity in this situation. Either require taxes up front for everything out of state or don't tax at all... I'm one of the few that gets caught in their registration net... been steaming about this all week...

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