Airfill sales tax

[Mako Mark]

The way I see it, the shop is doing a service of putting the air in the tank, not selling the air (I would imagine that could get into all other sorts of issues since air is a natural resource) .

Im with Jonnythan on this one, Air is a resource, natural or not it doesnt matter. the dive store modifies this natural resource theus compressed air is a product. You walk out with a modified natural resource which by definition is a product because it was produced.

Unless of course you take your own uncompressed air to the dive shop in large to be compressed, then they are selling you the service of compressing your own air and therefore you should not be taxed. I suggest about four or five of those really big black garbage bags..

.

 

[JMcD]

tax tax tax... I know they are not great, but I guess that I would rather have a government than not - and I have to fund it somehow...

In Canada we have a GST tax (Goods and Services)... hence "services" can be (and are) taxed. Much like the VAT mentioned earlier.

On the side, one concept in this discussion that I am not so sure of:
I'd have to question the comment that anyone actually "owns" the air. If in a theoritical world, you could capture enough of the world's air that it became problamatic for the rest of of us, I am sure you have problems with the rest of the world. Additionally, you can't damage (Pollute) air significantly without ramifications, but I can trash my TV as much as I want....

Like many natural resources, perhaps you may "own" that which resides on land that you own. So.. maybe you could "own" enough air to fill your tanks....

just musing on a saturday morning...

 

[Mark L]

tax tax tax... I know they are not great, but I guess that I would rather have a government than not - and I have to fund it somehow...

In Canada we have a GST tax (Goods and Services)... hence "services" can be (and are) taxed. Much like the VAT mentioned earlier.

...

Got currious on this one. Here is what I found out (for in Ontario)...
"Maintenance of compressed gas cylinders, including refilling, recharging and hydrostaic testing of compressed gas cylinders is a taxable service and Retail Sales Tax applies to the total charge for this service."

"Visual safety testing and inspection of compressed gas cylinders is considered to be a non-taxable service"

but then it gets qualified by adding
"if any maintenance, including refilling or recharging, or repair work is done at the same time as the safety testing, RST is to be collected on the total charge made to the customer."

It also says " oxygen and compressed air used for life support systems by divers and others do not qualify for exemption, since these items are not used as a sources of energy, nor as fuel for heating or lighting. However, portable cylinders containing oxygen and sold under a physician's prescription can be purchased exempt from RST"

I hate tax laws....so non-user friendly....

 

[Hoosier]

What? How much? Everything about scuba stuff is expensive in mid-west.......I feel like I am in a wrong place for scuba diving.......

I used to work at a SoCal shop for many years. We charged $2.50 for 72s and $3.00 for everything else. When we were informed by the taxman in the mid '90s(I don't remember if it was state or local) that we had to charge tax on airfills we simply lowered our prices to $2.31 and $2.77 so that the prices would remain the same.

 

[PRL]

It also says " oxygen and compressed air used for life support systems by divers and others do not qualify for exemption, since these items are not used as a sources of energy, nor as fuel for heating or lighting.

My body tends to disagree. I find that I will run out of energy real fast without O2. Will loose some heat as well from 98.6 to ambient temp. Without O2 its lights out for me.
LOL

On a side note. Crude oil is a nonprocesed natural resource.
Over $50 a barrel to pump it out of the ground?

 

[skubadad]

Dive shops should not charge for air at all...it should be free. Then you could hire the local dive shop's operator to run the cascade system, therfore only paying for the service.

 

[miketsp]

In a similar vein, I've been involved in legal discussions now lasting more than 10 years, as to whether custom software is a service or a product.