Essential Economics for Politicians

Ricky Fandango said:
Correct, as long as they have already paid the tax on it.
If they charged tax twice on the same gas, that would be illegal.
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Retail outlets collect sales tax at the time of sale, based on the sale price, and forward the money they collect to the state on a regular basis. Not doing so gets them in serious trouble.
 
espola said:
Retail outlets collect sales tax at the time of sale, based on the sale price, and forward the money they collect to the state on a regular basis. Not doing so gets them in serious trouble.
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Like I said before, if they send the tax in before they sell the product, as long as the price and tax collected match up, no penalty for early payment.
 
espola said:
Why are you trying such an obvious diversion? You can either provide some backup to your "no tax on what's in the tanks already theory", or admit that you were wrong.
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Circle.
I've been very detailed in my theory.

I have some gas station names if you guys need help.
 
espola said:
Why are you trying such an obvious diversion? You can either provide some backup to your "no tax on what's in the tanks already theory", or admit that you were wrong.
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Ricky Fandango said:
Like I said before, if they send the tax in before they sell the product, as long as the price and tax collected match up, no penalty for early payment.
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Seems the plumber wants to have it both ways. He has the retailer paying the tax on deliver and the consumer paying the tax at the pump . . . that is if he is aware of what he has said in the last 15 minutes.
 
Hüsker Dü said:
Seems the plumber wants to have it both ways. He has the retailer paying the tax on deliver and the consumer paying the tax at the pump . . . that is if he is aware of what he has said in the last 15 minutes.
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Its always the consumer who pays.
The retailer only moves the money between you and the tax man.
 
Hüsker Dü said:
Don't get grumpy and go all lying eyes on us (although that is a hoot as well). You have been as clear as mud.
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I did the best I could, you're welcome.
Just be sure to have a real tax professional on the payroll when you guys are up and running, and let me know if you want some free ideas on naming your gas station.
 
espola said:
How do they know how much sales tax to send in before the sale has taken place?
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That part is easy. Everything is calibrated on the pumps, tanks and deliveries.

The important thing, (and this is where the tax pro comes in) is to know if the state is going to pin the sales tax to existing inventory before the new tax is implemented.
If they don't, then a gas station with four 10,000 gallon tanks could stand to save up to 2,000 dollars by filling up, and paying the tax before the deadline.
 
Ricky Fandango said:
That part is easy. Everything is calibrated on the pumps, tanks and deliveries.

The important thing, (and this is where the tax pro comes in) is to know if the state is going to pin the sales tax to existing inventory before the new tax is implemented.
If they don't, then a gas station with four 10,000 gallon tanks could stand to save up to 2,000 dollars by filling up, and paying the tax before the deadline.
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Nice theory. Is anyone actually doing that?
 
You and rat may want to consult a tax pro and bring it up before you open your new station.

My names are free if you'd like to hear them.
A tax pro you will have to pay.
 
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