I am making and retail selling woodworking art pieces, resident of CA. I know that I should be able to use an exemption certificate to avoid paying sales tax on items that will be included in the pieces I sell retail. Two questions:

1. Presumably this applies to the wood but does it also apply to ANYTHING that is included, even glue, oil/wax finishes, etc?

2. If I didn't use an exemption certificate, can I deduct the sales tax I paid from the sales tax I collected and owe the state?

Thanks.

That is a rather complex sales tax question that is best answered by the Franchise Tax Board in California. They probably will respond to an email from you.

Thanks. Can you answer ques 2?

Not sure, but the answer is probably NO. Sales taxes are not like income taxes. They are more a flat tax that must be paid with NO deductions of any type.

Well, not quite. Purchases that are essentially wholesale, i.e. will be a component of something resold as retail, are definitely exempt.

May be. I do not practice in California, so I do not for sure.