>
>  So, you are apparently suggesting that these retailers are unsure about 
> whether or not to charge a tax on certain labor functions, so to cover their 
> asses, they are collecting a sales tax on those labor charges.  Now, if they 
> collect a tax where they should not be collecting one, can they then retain 
> that collected money for themselves as opposed to having to send it to the 
> state?
>
>  Steve

in the collection of sales tax, one is acting as a fiduciary agent for the 
state.  you collect it, you pay it.  you don't collect it, you pay it.  you 
collect it and you don't pay it, it is a felony.  not a misdemeanor.  not 
protected by corporate shield.  Maryland has argued that when I quoted $400 for 
a transmission(*long time ago) and then charged $300 for parts, and $100 for 
labor, not collecting sales tax on the $100 was incorrect.  AAmco came in and 
argued the case for us, and we won.  but splitting out installation may not 
work in most cases.

I had a company in Baltimore.  we sold a lot of product wholesale into Texas.  
I did not do a very good job of collecting reseller certs from the retailers.  
Last year Texas came after me for all uncollected sales tax on sales to anyone 
for whom I did not have a reseller cert.  they went back 7 full years, to 1999. 
 they are in the process of getting a judgement against me for $250,000 plus 
about $250,000 in penalties.  I(my company) cannot produce the paperwork, and 
those are the laws of the great state of Texas.



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