Airfill sales tax

[derwoodwithasherwood]

I don't pay taxes for having my regulator serviced, and all they are doing in putting in new grease (oversimplifying for example).

Shhhhh! They'll hear you. Don't give them any ideas...

 

[jbd]

Usually I get my fills free, but on occasion I am somewhere else and I have to pay. It was about a month ago that I was in a shop and got two tanks filled. I was charged the fill fee plus a sales tax, I was not getting notrox, just air. Services are not taxable, products are taxable. My question: When I get my tanks filled, am I paying for the service of putting air in my tanks, or and I purchasing air? I kind of always thought of it as a service of filling my tanks with the air around me. Now if I was getting a pp eanx fill, I could understand the sales tax, being that they purchase the oxygen, they are selling me a product.

Ok, What is your take on it? Should airfills be subject to sales tax? (not valid in oregon)

Was the air fill from a cascade system or straight from a compressor into your tank?
Its my understanding, but I can't put my hands on a hard copy of the info right now, that here in Ky if the air is straight from the compressor there is no sales tax. However if the air is from a storage source like a cascade system then I would charge sales tax.

Not sure exactly what difference that makes :06:

 

[TwoTanks]

Here in Taxachusetts there is no sales tax on air or nitrox fills. My LDS tells me that air is free and we only pay for the labor. I'm sure that eventually they will figure it out and start taxing our fills.

TT

 

[mweitz]

Uh, you are actually just renting the air. I wonder if we can get a recycle fee on it and get some of our money back when we return it to the atmosphere ....

My LDS charges tax on Nitrox fills. A rip for sure!

Mark

 

[mike_s]

Just change the cash register code from "air fill" to "pressurized air recyling service" and don't tax it since you're recycling.

 

[friscuba]

Renting air would imply that you return it undamaged at the end of your use. You are renting the tank if it's not your own, purchasing the air.

Air is not free. It's only a bit less expensive than nitrox in the overall picture. You still have labor costs, electricity, oil and compressor maintenance... not to mention the cost of a compressor you need to recover and the monthly rental on the space the compressor and the tank room takes up.

You are receiving a tangible product, even if it is only 70 cuft of air. I could see how it could be construed as a service, but I can also see how it could be deemed a taxable product.

later,

Steve

Uh, you are actually just renting the air. I wonder if we can get a recycle fee on it and get some of our money back when we return it to the atmosphere ....

My LDS charges tax on Nitrox fills. A rip for sure!

Mark

 

[Scubaroo]

Uh, you are actually just renting the air. I wonder if we can get a recycle fee on it and get some of our money back when we return it to the atmosphere ....

Shh! Or you'll get slugged for being a CO2 producer and have to start buying carbon credits with your airfill.

 

[mweitz]

LOL.

I already own the air. I am paying for the SERVICE of having it compressed into my tanks. Air IS in fact free (currently).

Given that, I should only have to pay the taxes on the pure oxygen portion of my nitrox fills ...



Mark

 

[mike_s]

Air is not free.

Don't tell the gasoline companies! They'll raise the price of it as it's required in our gas operated air combustible engines!

 

[Don Burke]

LOL.

I already own the air. I am paying for the SERVICE of having it compressed into my tanks. Air IS in fact free (currently).

Given that, I should only have to pay the taxes on the pure oxygen portion of my nitrox fills ...



Mark

By that standard, the oxygen should be free as well since you already owned it before it was seperated from the air. I do not see how an oxygen generator would be treated by the law much different than a compressor.

Bottled water was in the public domain before it was processed. It is a tough line to draw.