Thread: Rental gear & sales tax question

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  1. #1 Rental gear & sales tax question 
    Hey everyone.

    Hoping someone may be able to clarify something for me in regards to equipment rentals and sales tax in CA

    Iím a single member LLC in ca
    Purchased Alexa mini and accessories for use as a DP and as loan out kit rentals to productions.
    I am not strictly a rental house.

    Hereís what Iím confused on
    Does everyone pay the sales tax on purchase and then not charge sales tax on each rental invoice?
    Am I even supposed to charge sales tax on each rental invoice?
    Iíve head of people having cameras shipped to other states where there is no state sales tax??

    Tried to talk to cpa about it and he wasnít a specialist in ca tax.
    Maybe some people on here are in the same boat and have some advice of what theyíve done??
    Again I wonít be taking it as tax advice just personal experience.
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  2. #2  
    Junior Member
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    Dec 2017
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    Here is what my experience has been. Keep in mind this in Jersey. I researched and found out that if I rent my gear to a production and I am the operator of said gear then no sales tax is charged to the client. If I just rent them the gear then I am a rental house and must charge appropriately for sales tax in my state. Donít know about shipping gear to other states. I donít rent my gear unless Iím operating. Hope this helps a little
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  3. #3  
    Quote Originally Posted by Brian Trim View Post
    Here is what my experience has been. Keep in mind this in Jersey. I researched and found out that if I rent my gear to a production and I am the operator of said gear then no sales tax is charged to the client. If I just rent them the gear then I am a rental house and must charge appropriately for sales tax in my state. Don’t know about shipping gear to other states. I don’t rent my gear unless I’m operating. Hope this helps a little

    Hey Brian, Appreciate your 2cents and your experience.... thats sort of what I'm thinking will happen in CA as well... hopefully some CA peeps can chime in . did you choose to not pay sales tax on the gear? or did you still pay your local sales tax as well?
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  4. #4  
    Im in Ca and very interested in the answer....
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  5. #5  
    Senior Member
    Join Date
    Mar 2011
    Location
    Houston TX (formerly Brooklyn NY)
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    in Texas you can download a certificate that says that your tax exempt for equipment "used in producing a master recording".
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  6. #6  
    Quote Originally Posted by RobMNeilson View Post
    in Texas you can download a certificate that says that your tax exempt for equipment "used in producing a master recording".
    Rob, Interesting... any idea where you found that info? was there a state tax agency or board that give this info out?
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  7. #7  
    Senior Member
    Join Date
    Mar 2011
    Location
    Houston TX (formerly Brooklyn NY)
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    565
    I think this is the link Matthew: https://gov.texas.gov/music/page/salestax

    I get this form from a bunch of vendors when I rent gear, so I went ahead and downloaded one myself to send out.
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