wrote in message
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On Aug 11, 2:17 pm, Kurt Ullman wrote:


Businesses do not pay sales tax for things they buy to use in the
normal course of business. If I am a maker of candy, I don't pay sales
taxes in Indiana for sugar, the hairnets my employees use, the vats I
use to make the candy, the cartons I put it in, etc.
So,. Indiana there isn't really a double taxation of sales tax and
property taxes, addressing the concerns above.
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I believe you would not pay sales tax on the sugar or the cartoons,
but expect you would pay sales tax on the hairnets and vats. The idea
is that you do not pay sales tax on things which are resold, but that
does not include hairnets and vats. Indiana could be the exception,
but most states do not have a sales tax goods on goods that are
resold, but do have a sales tax on things that are not resold.

Dan
The hairnets would be taxed, but the vats would come under Indiana's
exemption for equipment used in manufacturing.

A quick google check shows a lot of states have a similar exemption,

Indiana, by the way repealed its inventory tax. they started phasing it out
in 2002. I think it was completely eliminated by 07 or 08.

Paul K. Dickman