Joseph Baba's Journal My Hardware

WELL" This is new to me because I just recently started selling some items on the forum. Three times I have been asked about the "SALES TAX, and or the FREIGHT" I did some research and here is what I "Understand" IF you are not a business, and just selling off some junk, normally no sales taxes applies, kind of like selling stuff from a "Garage Sale" IF you are a BUSINESS, and you purchase "Material or Products", Wholesale, (You did not pay sales tax when you purchased it) sales tax MAY Apply. when re-sold. In my situation, If I resell a "Widget" I purchased wholesale, IN California, I am required to collect sales tax. If I sell it out of state, I do not have to collect sales tax, without "NEXUS" in the state the item is being shipped to. (Research Nexus) , Now that leads us to "FABRICATION" of an item. This is a QUOTE from the California "Bureau of Equalization.>>>Quote " Fabrication is "Manufacturing" and is the labor involved in Creating tangible personal property. that is DIFFERENT in form or function from its component parts. This type of LABOR includes something as simple as drilling a hole in a metal strap and bending the strap into a bracket. REASON: the alteration is regarded as a step in the creation of a new item, which is Taxable fabrication. (California Sales and Use Tax Regulation 1524(b)(1)(b).)
NOW FREIGHT. I use SHIP-N-Click from home. Currently, it is $8.45 Small Flat Rate.

Thank You