Who collects sales tax????

[fool32696]

I'm in the process of setting up a legitimate lawn maintenance and landscape business in Florida. The state is telling me that I need to collect sales tax on plants that I install. How many of you guys do this? What does your state require?

[Crusis]

You know, that's a pretty good question. I've just been paying the sales tax when I buy, and just charging the customer the price I pay + the sales tax I pay for physical goods, and then $65 an hour for labor. I assume that since I paid for the sales tax when I bought it, that I'd be good with the state since my state doesn't tax services.

To be honest, though, I'm not sure if I'm supposed to do it that way. The end result is the same since I would save my customer sales tax by charging them the minimum on the hard goods I can and a bit more for labor.

[jrc lawncare]

I'm in the process of setting up a legitimate lawn maintenance and landscape business in Florida. The state is telling me that I need to collect sales tax on plants that I install. How many of you guys do this? What does your state require? I do. Required in NY, what a surprise.:rolleyes:

[General Landscaping]

When you are paying tax on your purchase, then re-selling as installed...you do not collect sales tax for the state.
If you were to buy and re-sell at your lot, then you would not pay tax on the purchase; but you would collect tax for the state upon selling.

Even if you were to have a half pallet of sod left over, and the customer's neighbor wanted to buy it off the trailer, technically, you should collect tax on that sale. I'm not sure if charging "delivery" would negate that requirement.

No tax on services.

[tthomass]

Heck no, more crap to keep up with and time I don't have. If asked, all margins are 'labor'.......never sell a product directly in the eyes of the state.

[fool32696]

I like where you're head's at tthomas. Have you ever had any problems dealing in that way?

[LTL]

It doesn't matter if you pay the tax at the nursery or if you charge the customer the tax. As long as the item has been taxed it doesn;t matter who pays it. Make it easy on yourself and pay the nursery. If you charge the customer the tax it's just more paperwork for you and thats no fun.

[tthomass]

It doesn't matter if you pay the tax at the nursery or if you charge the customer the tax. As long as the item has been taxed it doesn;t matter who pays it. Make it easy on yourself and pay the nursery. If you charge the customer the tax it's just more paperwork for you and thats no fun.

ditto

There is no issue. We are not retailers. Buy your product and sell it to your customer. Nobody on here buys a $200 tree and sells it to the customer at a mark up price for them to install. If you do, well, keep your eye on the help wanted adds for a job.

Really, there is nothing to be sneaky about. Simple as are you a retailer or not........answer is NO.

[Mike33]

Maryland is proposing a tax on labor, i think it will be a nightmare if it happpens. I remember when i was in the auto-body business ( earlier lifetime ) i live with in 2 miles from Pa. and had customers from there. I had some insurance work at times where they actually allowed for the tax on labor. here in md there is 5% on goods but none on labor. Could you imagine doing the breakdown on the labor , sitting it aside then paying every quarter. Or worse yet telling your customer btw an extra 5% for tax. Does any one else from other states have to deal with this?
Mike

[General Landscaping]

When I got all set up, everything was OK... then I got a call from the Dept. of Revenue a few months later asking about my tax ID #....... Crap:eek:

As it turns out, I don't even need one:cool2:

You'll be OK, just sell everything installed.




I worked at an auto shop years ago and one job comes to mind. Broken exhaust studs on a 2.4 DOHC turbo. If the ticket has any parts on it, there is tax on the whole job. There was $600 in labor and $7.50 in parts.

[packey]

You better check with the tax assesor for your area. I have lived in texas and now colorado. Each state does things different. When I was in Lubbock, Texas It was required that I have a sales tax permit even to just mow a lawn. i know it goes against state rules but that is the law so I did it. So just check and keep yourself highly reputable. Also don't forget to check on business license or permit, and Definetly Insurance

[jrc lawncare]

Maryland is proposing a tax on labor, i think it will be a nightmare if it happpens. I remember when i was in the auto-body business ( earlier lifetime ) i live with in 2 miles from Pa. and had customers from there. I had some insurance work at times where they actually allowed for the tax on labor. here in md there is 5% on goods but none on labor. Could you imagine doing the breakdown on the labor , sitting it aside then paying every quarter. Or worse yet telling your customer btw an extra 5% for tax. Does any one else from other states have to deal with this?
Mike Really not that big a deal. We have to collect it on labor , & quarterly payment is no big deal either.

[gandk06]

I collect tax on labor. I use Quickbooks for billing and at the click of button it tells you how much tax has been collected. I have to file quarterly and it is not tough to do. You can even file on-line to make it even easier.

[AGLA]

I hardly do any installs, but I have the sales tax certificate and do collect taxes on marked up materials. It makes it a lot easier to make money when things go off contract and you are charging for materials and labor. If you don't, you can not legitimately charge a mark up on materials.

If you are always working on a bottom line contract price, you can attribute your price to what you paid and the rest as service costs. As long as services are not taxed in your state, I would think you are all set. It comes in handy if you have a client who wants to switch out plants from your contract. You can't very well charge a higher labor rate to plant an equal sized plant, so it make sense to set yourself up to be able to mark up plants.

[fastpitcher]

Here in PA we collect tax on any service. But improvement's are not taxable. This thread lets you know how others run their business.
Rick

[chris638]

ditto

There is no issue. We are not retailers. Buy your product and sell it to your customer. Nobody on here buys a $200 tree and sells it to the customer at a mark up price for them to install. If you do, well, keep your eye on the help wanted adds for a job.

Really, there is nothing to be sneaky about. Simple as are you a retailer or not........answer is NO.

We are absolutely retailers. We buy things to sell to another person. You are a retailer by definition. There is only one kind of person that needs to charge sales tax, a legitimate business man. You should not pay sales tax at a nursery. Get yourself a tax id number and fill out a blanket form. Each state has it's own rules for what is taxable and not. Most lawn services in OH are taxable, both material and labor. The few exceptions are patios and excavating work.

[tthomass]

Welcome to VA, I don't have to do a dang thing and I am 100% legit.

Everything is price installed. I don't write up a $50,000 contract and go okay here is $10,000 for plants and $40,000 for labor......I don't break it down at all. The contract is $50,000 and here is what you get for $50,000.

I don't buy a product and drop it off for the customer at a 20% mark up. That would require the tax ID. This is also known as a nursery and the people come ot you, not the other way around.

I am not a supplier.