Start charging sales tax in Wash. State?

[siclmn]

I just got a new accountant and he wants me to start charging sales tax for my lawn mowing. I have not charged tax for 20 years, why should I start now? This will make all my $35 lawns cost $38 and I am always competing with those guys who still just charge $26 to $27 with no tax.

[LwnmwrMan22]

Ummm.....

you might want to check out this link...

http://dor.wa.gov/docs/pubs/excisetax/wataxfacts/taxfacts_mq_01_m06.pdf

It's your sales tax fact sheet for WA state, and it lists that you're supposed to be charging sales tax.

I had this happen to me about 4 years after I was in business, when I was doing about $1000 / month when I was 20. The MN Department of Revenue sent me a letter stating I was behind in my sales tax payments and they wanted me to cease all operations.

I ended up owing just over $3,500, since I didn't know I was supposed to be charging sales tax, they were a little more lax on the penalties.

Anyways, if you've not been charging since, it looks to me since 2001, you'd better start saving up, or at least start paying in now and hope they don't send you a letter saying where's the last 3-4 years of payments plus penalties and interest.

[ndunn]

I just got a new accountant and he wants me to start charging sales tax for my lawn mowing. I have not charged tax for 20 years, why should I start now? This will make all my $35 lawns cost $38 and I am always competing with those guys who still just charge $26 to $27 with no tax.

20 years and no audit while not paying sales tax is pretty damn lucky.

[Yard Perfect]

Charge tax - it is the law. Besides I get to use their dollars for three months prior to my quarterly payment. Nice fringe benefit.

[JFGLN]

They changed the law about 10 years ago.

[JRAZ]

Gotta do the sales tax man. Chrissy needs her share.

Nigel what's up? email me: urbanlawnscapes@hotmail.com

[DKinWA]

Wow! You might want to do some reading at the Dept. of Revenue (http://dor.wa.gov/content/home/) website. I'm assuming you aren't paying your B&O tax either? The way I understand it, you aren't obligated to charge sales tax, but you are obligated to pay it.