[kjpg]

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.

[AtlantaTaxExpert]

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.

[kjpg]

Thanks. Can you answer ques 2?

[AtlantaTaxExpert]

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.

[kjpg]

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

[AtlantaTaxExpert]

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