vending4528 Posted November 21, 2013 Share Posted November 21, 2013 1) This may vary by state but I am trying to determine how you pay retail sales tax. Is it paid on revenue collected or on just the cost of goods? Do you pay monthly, quarterly? It is different for cranes, vs. bulk vending machines? I am looking to buy a route and want to know the retail sales tax exposure. 2) In buying a route what is a good rule of thumb on placing a value on the equipment. The route I am looking at has mostly Northwestern bulk vending machines, roadrunner gumball machines and cranes, (pirate chest and toy taxi). Machines may vary in age from 1-5 years for cranes to 2-15 years on Northwesterns. Any metric that I could use to help estimate the value of this equipment would be appreciated. Link to comment Share on other sites More sharing options...
musser Posted November 21, 2013 Share Posted November 21, 2013 No one can answer your tax question without knowing what state you are in and sometimes county and city because they may have special regulations. And it is impossible to evaluate a route with so little information. My advise is require iron clad proof of income by tax returns and bank statements, believe nothing else. Thats your beginning. Examine the profit and loss statement. Is there enough profit in the existing business to service the debt you incurr (or repay your investment if cash) and still make a wage? If you use cash you must treat it as a loan to yourself because it could always be working somewhere else. Link to comment Share on other sites More sharing options...
havending Posted November 21, 2013 Share Posted November 21, 2013 1) This may vary by state but I am trying to determine how you pay retail sales tax. Is it paid on revenue collected or on just the cost of goods? Do you pay monthly, quarterly? It is different for cranes, vs. bulk vending machines? I am looking to buy a route and want to know the retail sales tax exposure. 2) In buying a route what is a good rule of thumb on placing a value on the equipment. The route I am looking at has mostly Northwestern bulk vending machines, roadrunner gumball machines and cranes, (pirate chest and toy taxi). Machines may vary in age from 1-5 years for cranes to 2-15 years on Northwesterns. Any metric that I could use to help estimate the value of this equipment would be appreciated. Keep in mind you may be required to file and pay tax in each city county you have machines. Link to comment Share on other sites More sharing options...
Hillbilly Posted November 21, 2013 Share Posted November 21, 2013 I pay sales tax on the product that is vended. It is included in the price of the item vended. It is backed out of sales each month and put into a holding account until time to pay. I pay it annually but will probably be on a quarterly schedule soon because of the amount. In my state (West Virginia) the machines are depreciated over 5 years. Municipal fees are paid annually. Link to comment Share on other sites More sharing options...
musser Posted November 22, 2013 Share Posted November 22, 2013 You really need to be state specific. For example some states have a sales tax exemption for bulk and states vary a lot so lets say your state exempts at 25 cents, product sold at 25 or under is taxed when it is purchased (use tax) over 25 would be sales tax on gross sales. So easy answers don't exist. Redemption merchandise (cranes etc) is often use taxed not sales but it can get very complicated The tax period you will be required to report on usually depends on sales volume , alot of new businesses are required to report monthly until the state determines your sales volume. Link to comment Share on other sites More sharing options...
havending Posted November 22, 2013 Share Posted November 22, 2013 You really need to be state specific. For example some states have a sales tax exemption for bulk and states vary a lot so lets say your state exempts at 25 cents, product sold at 25 or under is taxed when it is purchased (use tax) over 25 would be sales tax on gross sales. So easy answers don't exist. Redemption merchandise (cranes etc) is often use taxed not sales but it can get very complicated The tax period you will be required to report on usually depends on sales volume , alot of new businesses are required to report monthly until the state determines your sales volume. You got that right I spend more time than I care to dealing with tax rules. Link to comment Share on other sites More sharing options...
davco1 Posted November 23, 2013 Share Posted November 23, 2013 1) This may vary by state but I am trying to determine how you pay retail sales tax. Is it paid on revenue collected or on just the cost of goods? Do you pay monthly, quarterly? It is different for cranes, vs. bulk vending machines? I am looking to buy a route and want to know the retail sales tax exposure. 2) In buying a route what is a good rule of thumb on placing a value on the equipment. The route I am looking at has mostly Northwestern bulk vending machines, roadrunner gumball machines and cranes, (pirate chest and toy taxi). Machines may vary in age from 1-5 years for cranes to 2-15 years on Northwesterns. Any metric that I could use to help estimate the value of this equipment would be appreciated. What state are you in? Link to comment Share on other sites More sharing options...
caserri Posted November 23, 2013 Share Posted November 23, 2013 Since all responses are addressing question 1, I've moved topic to regulatory. --Steven Link to comment Share on other sites More sharing options...
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