What Items Are Exempt From Sales Tax?

 Sales Tax

As the 37th president of the United States, Richard Nixon, once said, “Make sure you pay your taxes; otherwise you can get in a lot of trouble,” and that’s completely true. Taxes are literally everywhere and you just can’t avoid them, no matter how hard you try. But by saying this, he didn’t mean the products that are exempt from taxes, and that’s what we will talk about right now!

One of the most common (and sometimes annoying) taxes is Sales Tax. It exists on almost every tangible product in the United States. So, if you want to buy a product for $5, you’ll buy it for a slightly higher price because someone decided to create a Sales Tax, a part of which will go to public services and other purposes. As you know, U.S. states have different laws regulating the tax system, so not every tangible product is being taxed. Everything depends on the state, its characteristics, and sometimes, mindset.

 

Non-Taxable Products

Normally, groceries, medical supplies, medicine, and industrial tools are not exposed to Sales tax; but again, before doing anything, check your state laws. You can come to great surprises after verifying the rules of your state!

Everything’s strange when it comes to Sales Tax, and now you’ll understand why.

Let’s move to the Constitution State, Connecticut, where Bicycle Helmets can be exempt from sales tax, meanwhile footwear at a price higher than $50, will be exposed to Sales tax. At the same time, Connecticuters stay away from Sales Tax while using shoe repair services, even though they paid Sales Tax for $50+ shoes!

Colorado exempts medical devices that cost more than $100; nothing strange there, but take a look at the next one, please!

In Pennsylvania, people pay attention to details, and that’s why products for consumption are non-taxable; meanwhile, those for embellishment will take additional money from you. For example, pumpkins can be both – taxable and not. If pumpkins are fated to be eaten, you won’t pay Sales Tax. Meanwhile, if you need a Halloween pumpkin for decorative purposes, you’ll have to spend relatively big bucks!

Vermont, a constituent state of the United States thinks about its Vermonters and allows them to enjoy their meal at the restaurant without paying Sales Tax. Too good to be true? You’re right! Instead of paying Sales Tax, people have to pay Meals and Rooms tax. According to the Vermont Official State Website, this is a tax which activates “when purchasing meals or alcoholic beverages served in bars and restaurants and when renting a room.”

P.S. Apart from these products, an overwhelming majority of tangible products are being taxed. If you want to purchase taxable products and resell them, you can easily get tax-exempt with our tax exemption service here at Prestige Auditors. Don’t look for sales tax-free products, when you can choose the products yourself and buy them without paying extra money!

As you can see, there are products that have been lucky enough not to have Sales Tax on them. But still, the list of non-taxable products is limited, and you won’t have a wide range of products to sell. If you changed your mind, contact us at Prestige Auditors and we will make your tax-exempt with a sales tax exemption certificate! It might be California, New York, Utah, or any other state. We can also help out with Utah business entity search if that might be something you’d be interested in checking out!

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