Re: Excise tax question


On Sat, 2 Feb 2008, Maren at google wrote:

But the tax rates are the same independent of whether
I sell beads or lilikoi, and I've always done some
retail sales - and I do some wholesale on beads too
-.

What do you refer to by "sheltering"?

I think I misunderstand the differing GET rates that
you pay as a farmer. I think you mentioned that you pay
at lower rates on farm products. I guess that
justification is that farm products have a low profit
margin. A lot of farmers would try to retail their crop
in the mainland in roadside fruit and vegetable stands
in front of their farms. Or even invite the public for
picking the fruit in their fields. IIRC recall one year
where we picked olaliberries real cheap on the farmer's
property. It's one of the reasons I like black cherries
when its tree ripened from the farm. The sheltering
part could come if you also sold say a basket with the
cherries rather than a plastic bag. It would still be
mostly a cherries sale. In your case, say you grew wood
roses on your farm, then it might be debatable on
whether you could sell beaded ornamentation on a
container of woodroses. I think that the state would be
liberal on that as long as the wood roses were the main
part of the cost. I don't really know if what I assume
is really what you say. So you can decide for yourself
on this. Best is to check with the state.

Most of my lilikoi go wholesale, most of my plants go
retail. Most of my Job's Tears go either wholesale or
out of state (where a lot of the out of state sales
are wholesale, but they're exempt from excise tax
either way - selling local stuff out of state brings
money into the state.).

No GET on the exports also evens the competition with
other states that don't charge a sales tax. It improves
your competitiveness with states like California that
can charge about 8% or more. All these different rates
makes the GET complicated for businesses, but more
importantly if businesses take advantage of lower GET
rates, then they "bring money into the state".



??

Maren Palms, Etc.: Tropical Plant Seeds - Plants &
Lilikoi http://www.jach.hawaii.edu/~maren/palms_etc/
and HiloBeads: Beads - Beading Supplies - Hand-made
Jewelry http://www.hilobeads.com/ Blog at:
http://hilobeads.blogspot.com/

.

Relevant Pages

  • Retail sales fall short of 2004 shopping spirit
    ... Retail sales fall short of 2004 shopping spirit ... Only the Sears store will remain open. ...
    (misc.consumers)
  • Re: AMD took over 2/3rd of desktop retail sales in US
    ... >> total computing market does retail desktop sales account for? ... consider that laptops and desktops are pretty close to parity when it ...
    (comp.sys.ibm.pc.hardware.chips)
  • Re: Will pin sales rise if the economy continues to fall?
    ... There are less new buyers for pins and vids anyway. ... portion of the retail sales I have had over the past 2 years have been ... to go and buy games, pool tables, a new luxury car, etc.  Nobody was ... probably the largest retail pool ...
    (rec.games.pinball)
  • Re: Sales are great...or are they?
    ... meet their modest sales goals, according to data released late Monday ... with the holiday falling on Tuesday. ... And the stores aren't so packed right now," said Tina ... according to the National Retail ...
    (misc.survivalism)
  • Retailers Face an Ominous Holiday Sign
    ... Retailers Face an Ominous Holiday Sign ... Sales of women’s clothing, a traditional pillar of the holiday shopping season, are unusually bleak so far this year, according to a major credit card company, an ominous sign for the retail industry. ... From high-end dresses to bargain coats, spending on women’s apparel dropped nearly 6 percent during the first half of the Christmas season, compared with the same period last year, according to MasterCard Advisors, a division of the credit card company. ... In its survey, MasterCard, which like many in the retail industry closely monitors sales trends, found that online spending had surged about 30 percent, well above the average growth this year. ...
    (soc.retirement)