hlunsford[at]bellsouth.net says...
- quote -

Inventory also affects multi-state taxation. Some states use
your inventory to determine the percentage of your income
that is taxable there.

If the OP is talking about sales tax, then the answer would
be "probably not" (an answer only slightly different from
the usual accountant's answer of "maybe").

Gary

--
You can probably X figure out X which letters to X delete to
derive my email address X.

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Joe wrote:

- quote -

Easy answer; Yes.

Many local jurisdictions tax inventory as reported as of
December 31st of the tax year. Not all, but many do. And
that rate of tax will vary greatly from Florida to
Washington.

To further cloud the issues, some jurisdictions which tax
inventories, allow an exemption for certain inventories that
are held only for transit to other states.

ChEAr$,
Harlan Lunsford, EA n LA

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Joe wrote:

- quote -

"Taxable in any form": Yes - as a deduction for cost of
goods as they are REMOVED from inventory.

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I am trying to write an ROI model for a distributor and need
to know if inventory held by a distributor in the US in
taxable in any form. I couldn't find any answers using
Google so I thought this newsgroup could me answer this
question.

Thanks,
Joe

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