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View Full Version : Do you have to charge tax when mowing in NJ?


Clear-Cut
11-28-2006, 08:15 PM
i was reading this (it was just revised this month) "ANJ-4" form

and from what it looks like you have to charge tax on mowing

http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj4.pdf

and about how much will i have to pay in taxes if my total income for the year for just cutting grass is $16,000? do i pay 6% of that?

PROCUT1
11-28-2006, 09:19 PM
Time to find an accountant

Clear-Cut
11-28-2006, 09:53 PM
yea i have been looking in the yellow pages...i just thought if i could find the answer here it will save me time and gas

Clear-Cut
11-30-2006, 01:32 PM
bump...anyone?

davevg
11-30-2006, 01:37 PM
http://www.state.nj.us/treasury/taxation/landscape.htm

Clear-Cut
11-30-2006, 10:48 PM
ill take that as a yes...

Repair and Maintenance Services
The Sales and Use Tax Act currently imposes tax on charges for maintaining, servicing, and repairing real property. N.J.S.A. 54:32B-3(b)(4). Repair and maintenance services performed by landscapers are subject to tax under this provision. The following are examples of taxable repair and maintenance services performed by landscapers:

Lawn mowing
Lawn reseeding
Lawn fertilizing
Tree maintenance (trimming, pruning, spraying, bracing, cabling, grafting, coppicing, suckering and feeding)
Weed/Insect control
Soil aerating, sterilizing and mulching

Clear-Cut
11-30-2006, 10:49 PM
do they charge us landscapers other tax? or do we just hav to pay the sales tax that we collect?

davevg
12-01-2006, 09:45 AM
IANACPA (I am not a CPA) But you would pass the 6-7% sales tax you collected from your customers onto the state. So if you collected 16k from your customers (included the tax), your taxable personal income (Not including deductions) will be somewhere between 14,953.27 (16,000/1.07)and 15094.34 (16,000/1.06) depending on where the income came in relation to the 6-7% tax rate change. So based on the info you gave us the remitted sales tax would be between 905.66 and 1046.73.

Talk to your accountant to make sure you are filing everything correctly. It may not seem worth it since you only made 16k. But a good accountant is worth more than their cost and will save you head-aches down the road.

Clear-Cut
12-01-2006, 02:05 PM
ok i got you...yea im def. going to talk to an accountant i just want an idea of what is going on before i go in there

thanks a lot for clearing that up

justin