Excise Link Warranty For Free

What purchases are exempt from the Kentucky sales tax? Clothing. 6% Groceries. EXEMPT. Prepared Food. 6% Prescription Drugs. EXEMPT. OTC Drugs. 6%

Manufacturer's Warranty (aka Original or Factory Warranty): Sales tax does not need to be charged for parts used to complete work performed under a manufacturer's warranty. The reason is that the value of those parts is included in the value of the warranty reflected in the original selling price.

(15) The provision reduced the tax rate applicable to new highway tires to 9.75 cents per pound and for non-highway tires to 4.875 cents per pound....Legislative History and Rationale. Weight of TireTax40 -70 lbs15 cents per lb. over 40 lbs.70 -90 lbs.$4.50 plus 30 cents per lb. over 70 lbs.2 more rows ?

Since FET is 12% of the retail sales price on a taxable item, it is critical for the seller to be able to accurately determine when the tax is applicable and precisely how much is due.

Use Form 8949 to report sales and exchanges of capital assets. Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.

Federal Excise Tax (FET) ? a tax imposed on premium payments to offshore insurers: 4 percent on direct premiums and 1 percent on reinsurance premiums.

Does tax apply when I make a warranty repair? Tax does not apply when a warranty repair includes only labor and does not require parts. However, tax may apply if you furnish parts.