Buying bulk and re-packing

[briduhunt]

I am contiplating buying bulk syrup after my crop is depleted as I have done some marketing and might have promised more than I can produce. My thoughts were to buy bulk in 5 gal lots and repack in the the needed sizes. My question is is this ok to do with out charging sales tax. I presently do not charge sales tax on my syrup but I will be buying the syrup from another producer and re-packing and labeling it with my labels.
Any input would be appreciated as I HATE giving Uncle Sam any more than I have to.

[maple flats]

In NYS syrup is not taxable. It makes no difference whether you made it or bought and repacked. The determining factor it that it is a food and is packed in a container larger than single serving. Just like you don't pay sales tax at the grocery store for a half gallon of ice cream but do at an ice cream shop for consumption then. As long as it is packed in multiple serving size it is not taxable. Also, be aware that candy is taxable but molded sugar is not. I therefor never make candy, just molded sugar.

[markcasper]

Don't lie maple flats..you have made maple candy a few times and you know it! tee-hee!

[Haynes Forest Products]

Just be careful of the source and do all the testing first. OH and dont overpay:)

[Haynes Forest Products]

Just be careful of the source and do all the testing first. OH and dont overpay:) I would also get a copy of there licence and inspect the operation

[3rdgen.maple]

Brian do not quote me on this but check our ag laws on syrup If I recall correctly you need to be licensed to by and repack syrup. New york maple producers have the laws on their website.

[maple flats]

Two things, first- I have been in the retail business my whole life with a degree in business management, most of it in NYS. I have a tax number and must collect tax on many things I do but tax on syrup is not one of them. I must file a tax report every quarter. Second, (markcasper) I have never made maple candy and if people want to buy some I tell them I do not offer candy, but I do have molded sugar, it looks the same and tasts the same but at this point in time it is NOT TAXABLE. AS an aside this issue is currently in committee in the NYS Legislature but thanks to the New York State Maple Producers Assoc. and NYS farm Bureau it is locked up for the time being. The syrup aspect is not even being considered, just the candy vs molded sugar difference. The NYSMPA and NYSFB are trying to get both terminologies classed as non taxable.