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

Feb 22, 2019
askacpaicon

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.

Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More

CPA Now

Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

PICPA 2020 Premier Sponsors

Platinum Sponsor

Gallagher Bollinger Logo
CPACharge


Gold Sponsor

Paychex logo


Bronze Sponsor

payroc-logo-hi-res
Capstan Logo 
SWKT_logo_horizontal

Interested in becoming a sponsor? Contact Kelli Comegys for packages and opportunities.