Bombardier To Charge State Sales Tax for Smart Parts
A recent announcement by Bombardier Aerospace is causing a stir among Smart Parts customers. The company is going to begin charging state sales tax on all parts ordered through the hourly program; the tax is not included in the hourly program cost. The change will apply only to sales in those states that require vendors to charge tax. The exact number of states involved was not readily available but is believed to be fewer than 10. Several operators who spoke to AIN on condition of anonymity said one of the primary reasons they participate in Smart Parts is to control and budget annual operating costs. “This adds a new dimension to overhead we didn’t budget for 2010,” one said. A spokesperson for Bombardier told AIN, “This issue applies to sales tax charged on parts shipped to certain states in which Bombardier is required to collect and remit sales tax. Bombardier adheres to all tax laws in states and countries where it operates. Bombardier maintains that Smart Parts is an effective cost-per-hour budgeting solution for its customers.” Additional details were not available.