Klarinet Archive - Posting 000476.txt from 2000/01

From: "Dee D. Hays" <deehays@-----.com>
Subj: Re: [kl] Good Middle School Bass Clarinet?
Date: Sat, 15 Jan 2000 15:45:31 -0500

----- Original Message -----
From: "Karl Krelove" <kkrelove@-----.com>
Subject: RE: [kl] Good Middle School Bass Clarinet?

>
>
> > Maybe if government agencies stopped taxing merchandise for sale
> > as "property," inventories would not be maintained at
> > artificially low levels.
> >
> >
>
> Well, that shows my complete naiveté about the tax situation. What tax is
> levied on warehouse inventory? Is it the same in Japan (or is all the
> student instrument equipment we buy made here in the U.S.?) When it is
sold
> subsequent to being taxed in this way, are the proceeds then taxed again
as
> income? We're really running over the edge of Klarinet's topic area, but
I'm
> very curious.
>
> Karl Krelove
>

Many states levy an inventory tax on retail businesses and manufacturing
operations at the end of the year. That's *one* of the reasons that there
is a big year end sale right after Christmas for many stores.

Manufacturer's try to complete and ship as much of work in progress as they
can so that they don't have to pay inventory tax on the raw stock and
semi-finished goods. When I worked for Boeing in Seattle in the 1970s, any
plane that was finished enough to fly was sent from Seattle to Wichita so
that it would not be part of the taxable inventory.

Dee Hays
Canton, SD

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