Truckers Shouldn't Pay Sales Tax: Sales Tax Exemption Explained
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- Опубликовано: 7 июн 2024
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What’s up y’all? I’m David McGill, a 2007 graduate of Indiana University’s Kelley School of Business, an experienced accountant, trucking business owner, and consultant. I created Trucking From Scratch®️ to help other entrepreneurs start, run, and grow successful trucking businesses by breaking down the business side of trucking.
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The information provided in this video should not be construed or relied on as legal, tax, investment, or business advice for any specific fact or circumstance. It's content was prepared by McGill Accounting LLC, with its principal office located at 1075 Broad Ripple Ave., PMB 390, Indianapolis, IN 46220. This video is designed for entertainment and informational purposes only. Viewing this video does not create an accountant-client relationship with McGill Accounting LLC. You should not act or rely on any of the information contained herein without seeking professional legal advice.
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Man!! The info that is being shared by you is greatly appreciated bro. I’m so glad I subscribed to your channel. 👍🏼
Thank you so much, David. All of your videos are an absolute wealth of knowledge. Like a lot of folks, I’ve been planning and researching topics pertinent to a successful trucking company also and I’ve leaned so much in the last few months from your videos. I’m in Indianapolis and benefit greatly from your videos. Thank you so much man!
Great video David. These are the things that makes a trucking companies successful.
Great stuff, David. I'm going to be setting up some time with you soon.
Great info as usual. Tks I’ll definitely be looking into this.
Hi David! just wanted to thank you for sharing your knowledge and experience with us. Hoping to start my own authority soon and I have learned a lot from you. God Bless you and your business and be safe. TY, RS
Extremely great info and video, I appreciate that sir
Thanks fam definitely got some new knowledge from this video
I really appreciate all your content. I'm driving into my own authority next year.
Thanks so much.........my husband decided he was going to start a hot shot business so I had to learn the business. Your videos have been sooooooooooooooooo informative.
kenneth from virginia beach. Appreciate the info bruh. Your input has been very helpful. Wife and I starting a trucking company very soon GOD willing and your info is most defintely useful.
I just started hot shotting and bought a new dually, I didn’t know about the sales tax exemption until just after i made the purchase. I’ll contact my state as you explained. Thank you for your knowledge!!
Major value in this video. Thank's a Million.
Great information. Thank you
Thank you for this information
You are hidden gem info bro, I really want to meet you if I pass by Indianapolis, IN and I am from Florida
Hi David - all your videos are really helpful; thank you! work for a company here in Wisconsin and I handled all our IRP VEHICLES. These are NOT for hire IRP Vehicles but for PRIVATE using. Are private using IRP VEHICLES are tax exempt? Okay, let's back up a little bit here, when these vehicles are purchased our vendors don't collect WI SALES TAX.
Very informative. Thanks
Good info. Thanks
Great info before I get started
Thanks bro. Always 💯
Thanks for the info
you dropped a Gem Homey...Keep it up
Thank you my brother
Can you do a video on how to fill out the sales tax exempt form online properly from the owner operator perspective? I’m in Georgia.
Great videos and advice. What happens when you live in one state and purchase a trailer in another?
Thank you!
Thanks for info, is it exempt if buying out of state?
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Thank you for the wonderful video. Does the same tax exemption apply to Texas?
Thanks a million buddy
Do I need an MC number in order to be tax exempt on vehicle purchases for my business
Can you use this form when replacing trailer tires
What do you think about FreightWaves Sonar?
U can use it at sam's and Costco
my apologies if I missed it in the VIDEO - where can I find the FL sales tax exemption form? - Thank you
Hey man love your videos. I'm from Florida but my trucking company is in wyoming. Which state do I for for this? Wyoming?
What's the right way to get your food deductible for lunch daily while you work. It this for any trucker or over the road. If your local does this apply for me. Thank you great video im filing my form asap.
Hey David! I’m in Michigan, I’m new to trucking and I have my own authority. Thanks for all of the great knowledge that you share. Once I download the form and fill it out does it have to be approved by someone with the State or do I just download it, fill it out, print it out and begin using it
Hi, everything you said in the last sentence
Thanks
Does anyone know if Oklahoma offers this? I’ve looked on the website you recommended but couldn’t find any info
I promise Walmart and target ARE familiar with tax exempt purchases. I grew up in a group home and anything that was bought for us or the home was tax exempt and the form was presented at both locations and yes its a longer transaction time but it works.
Man thanks
Thanks for the information. My question is what if you buy something from another state??
You need to have your billing sale notarized to avoid doble taxes
The company is on NC the truck repairs happened in another state. Could I have give them the multiple state
form such as the one below
E-595E
Streamlined Sales and Use Tax Agreement Certificate of Exemption
What if you get a letter from Attorney General about the sales tax that you thought was taking care of??
Thank you for the video. That was great! I have been paying sales tax everywhere except in IL. and I want to file for those returns. Would I have to go state by state to file for returns? If so, do you, or anyone here, know what states offer this exemption and allow me to apply for a refund?
Indiana state form ST-108E is for sales tax exemption on your semi truck. I know this because I am going through the Indiana part of getting my own authority. David you should pin this.
I recommend ST-105 bc it’s a blanket form and not VIN-specific like ST-108
@@TruckingFromScratch 105 says in bold print not for sales tax on vehicles. It's good for everything else tho.
I use it all the time using the 4th box of section 3, but feel free to use whichever you like
On the Indiana form ST-105 in section 1 after putting your TID found on the IN fuel tax license where do you find the 3 digit LOC#
Can we do this in Texas? If so, can anyone has the link to the form?
Thanks
Hi David. I am new to this process but i am trying to help my fiancée with his business, so please bear with me. I have a question concerning the tax exemption certificate, when you state beginning at time stamp 6:16, "let's say that you have been paying sales tax on ..... and you realize you should not have been", please clarify for me exactly who we you are directing this statement to. Are you speaking about ones who already possess this certificate, realizing that they should not have been paying sales taxes on certain purchases?, or are you saying that due to the fact that trucking businesses should be exempt from paying sales tax on certain things, that whether one possesses this certificate or not they should proceed with said steps to request a refund? Please help me understand better. Thank you so much. congratulations to you and yours and keep up the good work.
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I think in pennsylvania you need to have a p.u.c # to be exempt for sales tax
Subbed!
I purchas d a truck I. Maryland at a auction. When I register here in California will I be excemt of tax?
Does this apply for Sprinter Vans as well?
Can I use the sales tax exemption no that I just purchased my truck?
Meaning, that I purchased it from a private seller then , now I have to go register it with the county.
Thank you
For FL it’s partial
(1) SCOPE. This rule is intended to provide guidelines for the partial exemption for railroad rolling stock and parts and motor vehicles and parts provided in Section 212.08(9), F.S., to carriers who transport persons or property for hire in interstate or foreign commerce.
(2) MOTOR VEHICLES.
(a) Motor vehicles used to transport persons or property for hire in interstate or foreign commerce that are operated by any common carrier licensed by the United States Department of Transportation, and parts for such motor vehicles, are subject to the partial exemption provided in Section 212.08(9)(b), F.S. Tax imposed is based on the ratio of Florida highway mileage to total highway mileage traveled by the carrier's motor vehicles that were used in interstate or foreign commerce and that had at least some Florida mileage during the previous fiscal year of the carrier.
(b) A motor vehicle is used by a common carrier in interstate and foreign commerce if it carries persons or property that are moving in interstate or foreign commerce, whether the vehicle travels outside Florida or only within Florida.
(c) Motor vehicles that are purchased by common carriers outside Florida, and put into service in interstate commerce outside Florida prior to entering Florida, as evidenced by the registration of the motor vehicles in another state, are not subject to Florida sales or use tax.
(d) Charges for the installation of parts that are installed in Florida on motor vehicles used by a licensed common carrier in interstate or foreign commerce are subject to the partial exemption. Repairs and installation of parts on such vehicles performed outside Florida are not subject to tax.
KENNETH/KELY ENTERPRISE/VIRGINIA BEACH. SOMETHING ELSE I LEARNED TODAY. APPRECIATE IT.
Is it available in VA? I’m trying to look it up now?
Which video you show that certificate
Do I need to fill out one for every single state?
How to buy a semi truck from auction?
how to obtain the sales tax form for maryland?
Hey I’m in Pennsylvania at a Freightliner dealer, do you know if my dot has to be active for me to be tax exempt? I am getting told my dot is not active but it is, my mc number is not active yet, I’m still waiting on the 21 days for it to be active I just started my business 1 month ago
Thank you for the info. What happens when you sell the vehicle? Does the next person need to pay sales tax?
Anyone know how to get the exempt form for Florida? I can’t find it.
Do u need a certificate for each state u buy parts? Or does your state certificate work in all states u purchase parts?
I’m buying truck for my new business in Illinois and they said I don’t have to pay, but now I find another truck in Ohio is it the same rule. and how about Florida is taxes exempt?
Not in FL. Just looked it up
17 different categories but none of them transportation...
I’m trying to understand the benefits cause I called department of revenue in Florida and they told me you don’t pay taxes at the time but will have to later so I didn’t understand the benefits also is sales tax and use the same as sales tax exemption ?
Could you use sales tax when you buy the truck ?
Lease to rent can I get deduction on fuel taxes 🤔 using the company fuel card they say double receipts I keep one they keep one
so if you are tax exempt is this only sales tax? we still have to pay our taxes at the end of the year or quarterly etc. correct? & my next question is if we are tax exempt, when we do file our taxes are we going to have to pay in more because of this? & will we still be able to write off those items that were purchased without sales tax? for example if i pay 40,000 for a truck when i file can i still subtract that 40,000 off of what i pay in?
Can you still use it in other states. I’m based in Texas, but I usually buy parts in other states like NJ. Do I need to have a different certificate?
Did you ever find out? I have same question
Thank you for this video, do you know if I can get the sales tax back on my truck purchase and trailer purchase that I bought a few years ago?
Just got to the end of the video thank you again
So when it's time to file taxes,dnt you have to put some of the money you're saving by getting tax breaks to the side so you won't get audited,or no? please let me know, thanks 👍🏾
has anyone in California been able to locate this form?
David is there anyway I can shoot you a email?
If i look at the Florida form (DR-5 i believe) it doesnt have trucking as a category? What should be the category?
Same question, did you find out?
We do pay sales tax on service in TN.
Wait, when you have a new authority, you have a fuel tax account? Through what entity?
IFTA international fuel tax agreement
I’m live in GA I just bought a truck for $42k and I need to update my title now how do I avoid paying sales taxes in the process!?
Hello Umaru, I just bought my truck and need to know how to avoid paying taxes
Could you tell me what you did when you registered yours ?
What do you fell about Cummins ISX motors with a 10 speed Eaton and Fuller transmission? In a 05 Volvo VNL sleeper.
Sorry man but I don’t know anything about them
@@TruckingFromScratch No problem thanks
For that year get a Detroit s60 with a inframe rebuild performed
Are semis extemp
👍🏾
going this rout still save reciets for income tax?
Yes sir, this video is exclusively about sales tax
When I called Florida Department of Revenue, I was informed that truckers aren't exempt unless they're 501C3 organization.
Each state is different
Just to get it straight in your state if you get your truck serviced you don't pay taxes for the parts or the labor because its considered serviced.? 🤔 can all these taxes be added to expenses towards your end of the year taxes as a write off?
Parts - you don’t pay sales tax on the parts if you are sales tax exempt
Labor - you don’t pay sales tax on labor
Write off - Yes, the taxes you pay are tax deductible, but it’s counterproductive to pay an expense just to deduct it for tax purposes
@@TruckingFromScratch thank you David I was researching under my state dept of revenue of california website, and there seems to be no exempt for us truck carriers.
On average, how long does does it take to get the certificate? looking to buy a truck right now...
You should be able to just download it from your state’s department of revenue website & fill it out. It’s not something you have to send off
@@TruckingFromScratch Ahhh, ok you just have to use it when you make your purchase. Thanks man!
Are sales tax paid if you're renting trucks from Budget, Penske etc?
I’ve been charged from them before then when I present my certificate, they stop
So you do not have to pay sales tax if buying a truck for trucking business? Can you still write off depreciation at the end of the year?
Yes & yes
@@TruckingFromScratch thank you sir.
What is the downside to be tax exempt
I can’t think of a downside to not paying sales tax
👍🏽👍🏽👍🏽
Anyone from Texas?
Did you find it for Texas?