Posted by Sunny Notary/WA on 3/7/05 1:46pm
Msg #24133

Excise Tax

I got a notice in the mail from the Dept of Revenue that I needed to file my excise tax return. To my knowledge, there's no reason I'd need to file one, being a NSA. Does anyone have any input here? I called the IRS and the person I spoke to didn't really know why I would need to do that either but, because our business is pretty unique, I wanted to ask here because I know there are a lot of knowledgeable, much more experienced NSAs here than I. Any input?

Reply by John_NorCal on 3/7/05 3:26pm
Msg #24143

Your tax is probably a form of property tax or use tax. Usually, not speaking for Washington state, a state or county will levy a use tax on business assets, computers, furniture, etc. This is lieu of or in addition to any real estate taxes. They like to sock it to the business sector, never mind the fact that you probably paid sales tax when you bought the assets! In most cases they will figure that you are conducting a business when you file your fictitious business name (dba) statement assuming you did file a dba. If you haven't, I would be curious as to how and why they are levying this tax.
Hope this gives some insight!

Reply by Sunny Notary on 3/7/05 4:20pm
Msg #24151

Thanks John!

I appreciate your insight. I was confused about it because I'm not a homeowner but I did get a business license. So I wonder if this is something I'm going to have to pay? I did buy some things like a new printer, etc. Do you suppose I'll have to pay excise tax on stuff like that and, if so, how do they prove that I bought anything to conduct my business?

Reply by John_NorCal on 3/7/05 5:22pm
Msg #24166

Re: Thanks John!

Yep that's why they got you, the business license! The only way they know what you have, at least in California anyway, is if you tell them everything. Let your conscience be your guide.
Cheers!

Reply by Hampton/CA on 3/7/05 5:16pm
Msg #24164

Perhaps they meant "exercise tax", which would be based on how much running around you do at the end of the month.

Or maybe "excess tax", which would be a tax on too many fax-backs.

Or maybe it was "ex-wife tax". Ask Hugh for a definition.

Or perhaps it was "wrong size tax", which is the penalty for printing docs out on the wrong size paper.

Or perhaps is was the "jazzercise tax", which means you have to send a check directly to Richard Simmons with a note, begging him to stop doing info commercials.

Or perhaps.... okay. I'm done.

Reply by John_NorCal on 3/7/05 5:24pm
Msg #24167

Re: Excise Tax - No rain, too much sun for Hampton! n/m

Reply by HisHughness on 3/7/05 5:45pm
Msg #24173

It may well mean "XXX size" tax, which has all sorts of erotic implications but most accurately describes the size of the last blind date I had before I got married. She had her own ZIP Code. Considering that my experiences have led me to swear by all that I hold holy -- the Texas Longhorns, Blue Bell Home Made Vanilla Ice Cream, and , like most lawyers, the Almighty Dollar -- that I will never again marry a good-looking woman, since naught but grief has ever come my way because of it, that blind date is beginning to look pretty good right about now. Actually, a mud fence is looking pretty good these days.

Reply by ColleenCA on 3/8/05 10:34am
Msg #24351

I received these forms 1 month ago from our County Tax Board. They were very confusing, but I did my best to fill them out, explaining in the comment section that I am just a small home based business with a phone, fax, pc and printer. Thus far, I have not heard anything back from them, but yes, I must have been "flagged" because of my business license filing. They did not require payment of any tax, just an accounting of any business machinery, etc and what I paid for them.

Reply by Sunny Notary/WA on 3/8/05 12:19pm
Msg #24360

Thank you Colleen!

Reply by ColleenCA on 3/8/05 12:43pm
Msg #24362

Re: Excise Tax - You are quite welcome Sunny Notary/WA!

Reply by Andreas Eitschberger on 9/21/05 11:58am
Msg #66400

Sunny,

did you have to end up paying any excise/use tax on your equipment? It is my understanding that if you already paid the sales tax on an item, this is no longer necessary, or is it a yearly thing?

I just became a notary in WA, and wanted to be sure everything is legit. I have not applied for a business license yet.