Taxes on Molds

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jlkincai
Posts: 1
Joined: Thu Jul 26, 2018 3:07 pm

Taxes on Molds

Post by jlkincai » Thu Jul 26, 2018 3:13 pm

What has been the experiences with states charging sales taxes on molds built for customers when molds are built at an outside tool shop, paid by molder, and molder charges the tool cost to customer?

Jlkincai

Troyonix29
Posts: 25
Joined: Mon Feb 26, 2018 10:09 am

Re: Taxes on Molds

Post by Troyonix29 » Mon Aug 06, 2018 10:21 am

I've reached out to several MAPP members to see if they might have input on this issue and have asked them to post if they do.

Thanks!

Troy

samir.patel@mwmolding.com
Posts: 1
Joined: Mon Aug 06, 2018 10:20 am

Re: Taxes on Molds

Post by samir.patel@mwmolding.com » Mon Aug 06, 2018 10:38 am

If a manufacturer is registered as a reseller as most of us I assume are, then there is no sales tax to be charged or collected since the mold is being used to manufacture products that are resold to OEM companies. It's the same when we purchase an injection molding machine and anything else that is used in the manufacturing process. At least this has been my experience.

scotttitzer
Posts: 3
Joined: Fri Jun 08, 2018 11:00 am

Re: Taxes on Molds

Post by scotttitzer » Mon Aug 06, 2018 10:52 am

Samir answered the same way we would. We do not collect sales tax on molds here in Indiana.

Personal property taxes are another story. Hope this helps.

Scott

Troyonix29
Posts: 25
Joined: Mon Feb 26, 2018 10:09 am

Re: Taxes on Molds

Post by Troyonix29 » Mon Aug 06, 2018 11:41 am

The accountant for Metro Plastics Technologies just sent in this response:

"Lindsey,

In Indiana I do agree that it is exempt as long as you have an exemption certificate for the customer. Can’t answer the question for other states, for instance just got a letter from a client that Kentucky just changed there rules starting 7/1/18 that they will start collecting sales tax on installation charges.

Brian Brammer, CPA
317-398-9753 Ext. 107
website: www.brammerandyeend.com"

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