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Greenbrier
01-07-2006, 11:51 AM
Do any of you quote a price, then add sales tax? Or do you just quote a price and worry about the sales tax at the end of the year? Do you do , say, $35 an acre plus sales tax, or just the $35 -$40 acre. The question is, how do you handle sales tax? Not how much you charge per acre. I am thinking about having a standard rate per acre, then tacking on a sales tax of %15 (Fed and State, city) but that might put me over on competition. What do you folks do??

Thanks,

Coop

Gatewayuser
01-07-2006, 11:59 AM
In my county in Ohio we are suppose to charge 6.5% sale tax so thats what I add onto the invoice when the work is complete. No complaints yet besides them saying that Governor Tax wants are money. Welcome to the tax State!

CLARK LAWN
01-07-2006, 04:30 PM
you have to list tax seperate on the invoice. min is also 6.5% so on a $100 bill it would be $100 plus tax =$106.50. if your comperators are legit then they have to charge tax toand BTW there is no fed sales tax thats done by state and county. customer is responsible for paying sales tax it does not come out of you profits

MudslinginFX4
01-07-2006, 05:32 PM
It's easy here in NC... we don't have to put tax on labor!

Green-Pro
01-07-2006, 05:43 PM
On mowing I usually don't quote somebody $35 + tax. I just tell them $35, when getting statements ready the tax is figured in (.07 x 35 ) total bill $37.45.

When giving estimates on full maintenance, fert & squirt program, landscape or hardscape I then provide estimate with tax included. Don't know why I started doing this, I guess because usually when giving an estimate for mowing I pretty much shoot them a figure then and there, larger job bids sometimes (not all) require a bit more time.

Roger
01-07-2006, 09:51 PM
Greenbriar ... I don't know what you mean by "worry about the sales tax at the end of the year." In reality, you are not charging sales tax, you are the collector of the tax for the state. From your comment about the end of the year, do you mean you will add a single lump amount to the last invoice, the amount being the tax for the entire year? This is not permitted as I understand the codes. The tax must be collected for payments. If you are a legit business and comply with regulations, then you must have all the information regarding collecting the tax, and how/when you are required to pass along the money.

I have had debates from my taxing agency regarding paying them tax on work done vs. paying them tax on money collected. They are not consistent with their own story on this point. Our work, with monthly invoices, isn't quite as simple as retail sales when the business owner collects the tax at the time of sale.

I never quote the tax directly, but provide a quotation, with a "plus tax" clause. And, yes, some have objected in adding the tax with a payment, because "I don't think they should charge tax for this kind of work," or statements to that effect. This issue is not what they, or I, think about the matter, rather what is required of the business owner.

RonB
01-07-2006, 10:38 PM
Sales tax end of year?

I have to send in the last month collections in by the 20th of the following month - what I collected in Dec. is due Jan 20th.

If you don't collect it, you will need to take it out of that $30 (whatever) for the cut. On your paperwork you'd show a billing of $28.04 and sales tax of $1.96 is sent in. 7% here.

Green-Pro
01-07-2006, 11:29 PM
Sales tax end of year?

I have to send in the last month collections in by the 20th of the following month - what I collected in Dec. is due Jan 20th.

If you don't collect it, you will need to take it out of that $30 (whatever) for the cut. On your paperwork you'd show a billing of $28.04 and sales tax of $1.96 is sent in. 7% here.


Ours are due on a quarterly basis

sheshovel
01-07-2006, 11:49 PM
I only charge tax on materials that I have to pay the tax on

Reliable Lawns
01-08-2006, 06:27 PM
I only have to collect sales tax on pesticides like grub control, all others like mowing, there is no tax on that labor/service.

RonB
02-07-2006, 07:30 PM
I'm bumping this thread .. today I called the tax commission and asked if I cut someones yard and trim some bushes, do I collect sales tax - answer, NO.

The lady said if you do "landscaping", like plant flowers, trees, you would collect it.

I was wrong in my other post here and screwed myself outta some cash last year.

btw - got my first apartment complex today.

BSDeality
02-07-2006, 07:43 PM
each state is different, so if you're unsure the best bet is to call your tax commissioner like RobB

CT taxes everything.

Gatewayuser
02-07-2006, 09:53 PM
In Ohio you have to on anything including snow plowing.

allinearth
02-08-2006, 08:04 AM
If you call, make sure you get the name,etc of the person you talk to or get the answer in writing.

daveintoledo
02-08-2006, 10:54 AM
yep even plowing, (any mechinized means of snow removal) if you use a shovel no... there is a great page on the ohio site that explains what is and isnt taxable, ... for me, its everything, except cleaning gutters..

i give price and add sales tax to that ... i dont want to give the state any extra, and i dont want to loose any either... here we have to send in that paper work each month, even if you collect no tax in a month you still have to send it in.....

thank you again gov taft.....:realmad:

LawnScapers of Dayton
02-08-2006, 11:02 AM
Actually in Ohio you only have to collect tax for plowing if you earn over $5000.00 doing it..... Kinda strange .....

nherweck
02-09-2006, 12:22 AM
Anybody know about Kentucky?

General Landscaping
02-09-2006, 12:31 AM
FL... pay tax on your materials when you buy them and as long as you install them, no additional tax is collected on your invoice.

Cornwell
02-13-2006, 11:22 PM
You guys suprise me, I would think that somebody here would have a good answer, like ask you accountant they are the people you pay big bucks to for this kind of knowledge. Advice is alright when you're talkin about how to cut the grass or why you have spots in the lawn, but when it comes to your money there's nothing like actual professional knowledge.

KeystoneLawn&Landscaping
02-14-2006, 04:59 PM
I actually printed a copy of the state code on lawn and landscaping sales taxes. I did this because some lCOs arnt charging correctly and have had people tell me they didn't pay before. So I show them the code and collect the tax. The PA code doesn't list every service , they list examples of taxable and non-taxable and this does cause some "gray" area questions.

nherweck
02-14-2006, 06:30 PM
I actually printed a copy of the state code on lawn and landscaping sales taxes. I did this because some lCOs arnt charging correctly and have had people tell me they didn't pay before. So I show them the code and collect the tax. The PA code doesn't list every service , they list examples of taxable and non-taxable and this does cause some "gray" area questions.

Where did you get a copy of that? I'd like to get one myself for KY. Thanks!

daveintoledo
02-14-2006, 06:34 PM
Actually in Ohio you only have to collect tax for plowing if you earn over $5000.00 doing it..... Kinda strange .....

not plowing, or mowing, if your COMPANY makes more then 5000 for a YEAR you must charge sales tax on all taxable services....including plowing and mowing, landscape work, bush or hedge trimming... its not per occurance....

KeystoneLawn&Landscaping
02-14-2006, 07:05 PM
nherweck...I found it in the PA state website....took awhile of searching...I'd go to your states site and do a search on sales tax and I'm sure you will find it

nherweck
02-14-2006, 07:22 PM
KeystoneLawn&Landscaping thanks, I'll check it out!

lawnman_scott
02-14-2006, 08:38 PM
You guys suprise me, I would think that somebody here would have a good answer, like ask you accountant they are the people you pay big bucks to for this kind of knowledge. Advice is alright when you're talkin about how to cut the grass or why you have spots in the lawn, but when it comes to your money there's nothing like actual professional knowledge.That is probably because sales tax is a city, county, or state thing so everyones awnser could be different, but they all will be right.......... for their area.

lawnman_scott
02-14-2006, 10:34 PM
I am thinking about having a standard rate per acre, then tacking on a sales tax of %15 (Fed and State, city) but that might put me over on competition. What do you folks do??

Thanks,

CoopWe dont have a state sales tax here for maintenance, or federal for that matter. But most places you just collect the tax according to the tax rate, you dont just make up your own number.