TX law on amusement question

[Guest]

Archived from groups: rec.games.video.arcade.collecting (More info?)

I was reading on the web about the "Amusement Machine Regulation and
Taxation September 2000" law and ran accross something interesting
maybe someone here can clarify.

It states "License and registration certificate holders must pay sales
tax on all machines purchased unless the machines are purchased
exclusively for resale"
This is under a section called sales tax and not under the permit or
sticker tax.

So here is my question do licensed operators who go to super auctions
still have to pay sales tax if they are buying the machines to resale?
If we tell superauctions we are buying games to resale do we still have
to pay the tax?

Not trying to get around anything just wondering what that meant in the
state law though most games I buy at auction are no longer for my home
use but rather games I want to fix and resale.

Just curious
Tim

 

[Guest]

Archived from groups: rec.games.video.arcade.collecting (More info?)

You must have and show a "Reseller's License" to avoid state tax at the
auctions.

It's the same way in Ca. IIRC

L.

 

[Guest]

Archived from groups: rec.games.video.arcade.collecting (More info?)

Any auction company is bound by law to collect sales tax on the
equipment they sell- no argument there. The law provides a provision
to avoid double taxation by allowing resellers to collect sales tax at
the time of sale instead of upon purchase of the equipment.

Here's the catch- you can bet any auction company worth it's salt will
require a copy of your state tax ID number and they'll keep it on file
so merely telling them you're a reseller won't cut it. If they're ever
audited, they want to have proof that the transactions conducted within
the provisions of the law are in fact within the boundries of the law.