I’m planning to use my Glowforge to design, manufacture and sell cool laser cut products.
As a result, I have an LLC and a reseller’s permit.
I use the reseller’s permit at various stores/vendors/suppliers so that I do not pay sales tax when I am purchasing items that will ultimately be resold.
I’m wondering if Glowforge will accept my reseller’s permit and therefore not charge me sales tax on my Proofgrade orders.
If not, I may have to purchase my materials elsewhere.
Will Glowforge accept my reseller’s permit and therefore not charge me sales tax on my Proofgrade orders?
Unless you are in the state of Washington, you should not be charged sales tax.
Quickest way to check would be to review your original GF order.
Edit: the one caveat on this is that some states & municipalities charge “use tax” on out of state orders to encourage local sourcing. The onus is typically on the buyer to declare such purchases in that case.
Possibly, but the actual purchase is in WA and the PG materials are shipped by a 3rd party, so no sales or use tax is likely involved. Also, I could be entirely wrong.
Not sure how they have it structured. Generally if an entity is doing business in that state to where it’s shipped, then tax is charged. They may be able to avoid that with CA because it’s being dropshipped from the manufacturer. Maybe the same scenario with the PG factory.
I’m in TN. When I add items to the cart it looks like I would be charged 4% sales tax. That is not the local rate, though, so I’m not sure where that percentage is coming from.
Just a thought, @Secret_Sauce, but if you are looking to wholesale purchase then proofgrade may not be your best (most profitable) option. As great as proofgrade is, and I truly love using it for personal projects, to keep profit margins up to a reasonable rate I tend to look for local wholesale suppliers, being local removes shipping as a factor and buying in quantity and then cutting down to size usually saves me a good bit. That said, a lot does depend on your end item and desired quality. You’re not going to find a better ease of use/resulting quality than proofgrade.
The sales tax applies to machines as well. I ran an experiment to ship a GF to my house (TN) or my Dad’s house (IN) and tax is applied to the TN sale, but not the IN sale.
It looks like the proper tax rate came up for @dave2 (at least from what I can tell on a quick google search on TN sales tax rates) on his experiment with an actual GF unit. Maybe wood is taxed at a different percentage than other goods? I see a couple of examples where certain things are taxed at a lower rate - and a lot of states have different rates for groceries, etc. I’m just throwing darts.
Most retail purchases here are 7%+ county/city tax. My county is 2.25% making the total 9.25%. It may be based on the county of residence for the TN wing of GlowForge.
I have a few e-com stores that we charge the same rate 9.25% to all of TN and my accountant hasn’t yelled at me yet about it.
Yeah, we don’t have a state income tax, so we end up with some pretty wild sales tax rules that can vary from city to city. My local rate is 9.25% (Memphis), but it’s 9.75% in one of the suburbs (unless of course you’re buying food, where the rate is a bit lower). There’s also a difference if you’re buying something over $1,600. Anyway, I don’t think there’s a different rate on something like wood, but now I’m curious enough about it to dig up some receipts.
We have both an income tax (1% of the state pays more than the bottom 50%) and a sales tax (as well as all sort of various & sundry use type taxes like a gasoline tax & a gasoline gross receipts tax). Food is (generally) not taxable so pet food is taxable unless you’re going to eat the pet. I used to tell the pet store guy I was eating the guinea pigs I was buying food for Edible is subject to statutory definition and animals you’re eating (statute is silent on whether they are also pets) and their food is defined as food
Clothing and unprepared food items. Everything else has a tax. Sometimes you can find a reduced sales tax area of 50%. But yeah…we have a lot of tax burden here. We have the longest tax payoff time in the US. I think we have to work until some time in May and that’s all for taxes; we get to keep the rest of the year’s pay.
Yes, if you email support@glowforge.com after your purchase with your reseller permit information, we’ll review the permit and then refund applicable taxes.
Edible is subject to statutory definition and animals you’re eating (statute is silent on whether they are also pets) and their food is defined as food 