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If I buy something with my resale certificate for $10 but sale it with other services like labor for $150. Do I have to claim the whole price to dr15

Locksmith I buy keys online for resale but when selling I add charges for programing and cutting key do I have to claim the whole sale to state taxes.
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3 Replies
KrisD15
Expert Alumni

If I buy something with my resale certificate for $10 but sale it with other services like labor for $150. Do I have to claim the whole price to dr15

It depends on the state, but if your state (for sales tax purposes) does not tax services/labor, but does tax products, you may need to separate the two. 

On the other hand, if your state does tax services, you can enter as one sale. 

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If I buy something with my resale certificate for $10 but sale it with other services like labor for $150. Do I have to claim the whole price to dr15

Do I have to use my resale certificate? Can I stop using and and paying taxes on just keys when I buy to avoid?

If I buy something with my resale certificate for $10 but sale it with other services like labor for $150. Do I have to claim the whole price to dr15


@hmills2015 wrote:

Do I have to use my resale certificate? Can I stop using and and paying taxes on just keys when I buy to avoid?


We can't really answer sales tax questions since every state is different.  In the states where I have lived, a merchant would not pay sales tax on materials, provided that they charge sales tax on the final product or service.   For income tax purposes, you deduct whatever you pay for the item as your cost ($1 for a no-tax blank, or $1.10 for a taxed blank, for example). 

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