[Pokey]

Need some guidance on purchases of new heavy equipment (Heavy Trucks & Trailers). I tried finding a clear answer on this but couldn’t find any links that would clarify if a company would have to pay of FET 12% as well as Sales Tax 6.25% (Texas companies). The last company I worked for, I was told No – that once FET is paid no Sales tax would incur but at the current company I work for they are saying Yes. Help!

Is there anyone with FET and Sales Tax experience on the purchase of new equipment and if there is some source document I could rely on?

Thanks for your help!

A - 79
F - 77
R - 83
B - 75

AUD - 74 (3x), TBD
BEC - Sept16
FAR - TBD
REG - TBD

[jm962011]

FET is charged at the federal level and the 6.25% is the state of Texas's sales tax rate. Just because you pay FET doesn't mean you don't have to pay Texas. They are separate taxing levels.

I am not familiar with FET but for Texas, you may qualify for an exemption but there are a lot of “ifs” to ask. What are you purchasing the heavy equipment for? Most states give an exemption for sales tax if you're reselling the items, using them in your manufacturing process, or are an exempt organization. Texas is tricky state though so it really could be anything saying yes you do have to charge tax or no you don't.

[Author]

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