Do I have to pay sales tax on a frame I bought to have a food truck built?

Feb 22, 2019

I’m having a food truck built. I bought the frame before the builder started transforming it to the actual food truck. I went to the title company, which said I must pay sales tax on the frame I bought for $20,000. I don’t think this is correct. Any assistance would be great.

You are not making the vehicle for ultimate delivery to someone else. Rather, it is being built for your use. So sales tax would be required. 

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Joseph A. Pancerella, CPA, is managing director of Pancerella & Associates LLC in Reading, Pa.

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