Actually, as a wholesaler you would be responsible for collecting taxes on all five vehicles. The taxes on the four you sold at retail would be considered "Sales Taxes," and the one you consumed yourself as a wholesaler would be considered "Use Tax." They are calculated exactly the same; the only difference is the way they are categorized for the government.
There is a very nice mechanism built into the Fair Tax that prevents cheating in most cases, and that's the fact that all violations are federal offenses against a tax code, which historically have massive fines and prison terms. Believe me, whoever is in charge of enforcement will make sure the money gets collected and paid to the government. Respectfully, Adam Phillip Churvis President Productivity Enhancement > -----Original Message----- > From: Cameron Childress [mailto:[EMAIL PROTECTED] > Sent: Monday, January 28, 2008 10:00 AM > To: CF-Community > Subject: Re: CF-Community Presidential Poll > > If you are an individual I would expect that you'd always be paying > retail regardless of your intent. As a business, you would be > responsible for collecting sales tax on retail goods you sell (the 4 > you > sold). As a business you are NOT required to pay retail tax on > business-to-business purchases for things you will be using "as a > business". This means if that's a company car, you aren't going to pay > the retail tax on it. This is similar to buying a company car today in > that you don't pay personal income tax on the "company car". > > Now if you are buying the 5th car as a business and using for your own > personal use then that's an issue and would probably be caught in > retail > tax audits. > > -Cameron > > Billy Cox wrote: > > The line between wholesale and retail purchasing is blurry at times. > If I > > buy five Corvettes for resale, who is going to care whether one of > them ends > > up in the garage at my home long after the other Corvettes are sold? > > > > > > > > > > -----Original Message----- > > From: Cameron Childress [mailto:[EMAIL PROTECTED] > > Sent: Monday, January 28, 2008 7:35 AM > > To: CF-Community > > Subject: Re: CF-Community Presidential Poll > > > > > > From: > http://www.fairtax.org/site/PageServer?pagename=about_faq_answers#1 > > > > "The FairTax is a single-rate, federal retail sales tax collected > only > > once, at the final point of purchase of new goods and services for > > personal consumption. Used items are not taxed. Business-to-business > > purchases for the production of goods and services are not taxed. A > > rebate makes the effective rate progressive." > > > > -Cameron > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:252153 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
