I run a metal stamping company in Texas and have rented a fork lift until my new lift comes in. Is this rental tax exempt?

ANSWER

The BIDaWIZ Team's Answer:

We're assuming this is a sales tax question? Unfortunately, forklift sales and rentals are generally subject to sales tax as per Texas State Tax Code.  Specifically, in Texas there is a sales and a 2% surcharge tax as per Texas Administrative Code Section 151.051(c) if the off duty equipment is of 50 horsepower or more. If there is less horsepower, there wouldn't be the surcharge tax.

References: Texas Administrative Code Section 151.051(c)
State: Texas
Sales tax category: Product Taxability
Product: Forklifts