Spehro Pefhany wrote:

Some things a business buys ARE subject to sales or use tax. Tools,
cutters, etc. for example. Generally anything that`s not directly
consumed (or better, goes out the door complete or as part of
product) is probably taxed.


At least in Missouri, it gets more complicated. It was so good, it
looked like one of those "too good to be true" things, so I had to look
it up on the state's department of revenue site. Consumable tooling,
attachments and upgrades are not taxable. Now, maybe you are supposed
to pay tax when you buy the FIRST one, but not when it wears out and
needs to be replaced. Anyway, anything that attaches to or upgrades
capital equipment isn't supposed to be taxed. So, if you need a new
collet or fixture for your lathe or mill, you aren't supposed to pay tax
on it. If you CNC or add a DRO to a manual machine, that's an upgrade,
so no tax.

Since I sell almost everything out of state, I don't charge tax on very
much of what I sell.

I do pay tax on computers and major machines, but usually buy them used.

Jon