Most likely seller didn't pay any sales tax when saw was bought as it was used in production of goods for sale.. Now they have to collect sales tax, as they are selling a product ( the saw.) The legislator lowered corp. income tax, and shifted it to individuals as sales tax. NC Dept of Revenue is very aggressive in collecting sales tax. If I bought something that included sales tax, and then used it to make a product, or service, then my customer had to pay sales tax on total cost, including sales tax on the sales tax I paid. A few of examples, gasoline for truck, electrictiy to run the lights. fuel to heat shop, motel room at trade shows, meals consumed while out of town. I had already paid the sales tax, but had to include their cost in labor, upon which I had to collect sales tax. Taxing a tax. That's one of the reasons I decided to close down my business