Sales tax exemptino for Lawncare and Landscaping in Ohio

[brentsawyer]

I was looking for what sales tax to charge for a landscaping job in Ohio and I came upon the following link. In it it has a exemptions and exceptions part that list areas where sales tax isn't collected and what do I find. You got it. Lawncare and landscaping listed in #2. Since I don't live in Ohio, I don't know if I am reading something wrong here, but please take a look and direct me in the right direction. http://www.state.oh.us/tax/Publications/2000_Annual_Report/27-sales.pdf
I am also unsure since I live in Kentucky what the requirements are.

[ohiolawnguy]

th link isnt working for me, so i didnt see that. in the early 90's 1993 i believe the state began to require that LCO's charge ohio sales tax for all services. ohio sales tax is 5.75%, and I think that everyone with the exception of churches and non-profit organizations, are supposed to be charged sales tax.

[plymouthvaliant73]

ohiolawnguy, It's a pdf document. You need Acrobat Reader (http://www.adobe.com/products/acrobat/) to open it.

brentsawyer, I think you read it wrong. http://rockbottomdlux.freewebspace.com/smilies/Contract.gif

#2 is a list of taxable services.

The language is confusing.

You gotta pay the man. http://www.freakygamers.com/smilies/s2/contrib/anym/pyth.gif

[KDJ]

Down here in Florida the Lawn Care industry is not required to charge State sales tax even if there is product involved.

Laws change from state to state.

[plow kid]

I have always collected tax on MATERIALS not labor, and ohiolawnguy, Ohio Tax is 6.25%

[brentsawyer]

Ohio is pretty weird. It looks like Ohio as a state charges 5%. The additional is up to individual manucipalities. Therefore, one county could have a different rate than another.

[LoneStarLawn]

Originally posted by brentsawyer
Ohio is pretty weird. It looks like Ohio as a state charges 5%. The additional is up to individual manucipalities. Therefore, one county could have a different rate than another.

That is very common. Each city has it's own government and their own expenses so yes sales tax will change from city to city within one state.

Here are all the rates in Texas.... Click Here (http://www.window.state.tx.us/taxinfo/local/city.html)

[LAWNMAN017]

Ohio makes you pay sales tax on your materials and your labor and the sales tax is different in each county like mahoning county is 6% unless your snowplowing you charge tax for salting but not plowing ! ohio is a messed up state

[walker-talker]

Here is KS that is no tax for mowing, only for installs and that is for materials. If YOU pay tax at the time you pruchase materials, then you can just charge that cost into the job you are doing. This is called "streamline bookkeeping". By that I mean you don't have to fill out any extra forms and pay the IRS. Most in this industry perform a service and not retail sales. As stated above, all state governments are different.

MATT

[The Good Earth]

This is how it breaks down for you:

You are in Lexington, Ky. Most of your work will be in Hamilton, Warren, and maybe Brown counties. Anyway, whatever county you are working in find out what the sales tax rate is in that county. Most counties are different by a 1/4 or 1/2 percent.

It's really not that hard, you just have to figure out what each county cost. For example Hamilton county could be 5.75% while Warren could be 6%. Adjust your invoies accordingly to reflect what county you are in for your customers.

[ohiolawnguy]

Plowkid, we are considered a service industry, and we are supposed to charge sales tax on labor. I didnt pass the bill, and dont care for it, but we are supposed to charge and do charge it. and, we charge sales tax on salt, but not plowing. All other labor is taxable.

[OBRYANMAINT]

looking for some healthy conversation
for instance

why is snowplowing exempt from tax but not lawn mowing?

as its been said

i see them both as services. With one your tools are just a bit bigger

[ohiolawnguy]

Obryan, i wish i knew the reasoning behind that also. My only thoery, and it might be incorrect, is that a lot of large
construction companies, and paving companies who do snowplowing in the off season, have influence of some type in the state legislature.


If we have to charge tax, it should be straight across the board i think. Not this whole mumbo jumbo of tax this but not that.


I also get a kick out of how different municipalites charge for a snowplowing license. like fairlawn, ohio=$50.00 per year. Cuyahoga falls, ohio = $35.00 per truck.

Akron doesnt require this, but an Akron police officer was messin with a guy i know who was plowing a commercial lot, and asked where his akron snowplowing license is. He got all worried, until cop said he was just joking.-LOL

Hey Obryan, Does stow require a plowing license? Or for that matter Hudson if you ever work there?

[LoneStarLawn]

My opinion is that snow plowing maybe looked as a necessity compared to lawn mowing. Food is not taxed....cars are.

People can cut their own lawns but most can't do large snow plowing jobs.

I'm really not sure since we do not do snow plowing.

[OBRYANMAINT]

stow does not, hudson yes,similar to falls

stow will be there in a few years

most of my plowing is in stow but do enough in hudson and falls that i dont risk it

[Scape Sculptor]

sales tax is different % in each county.
What county are you looking for.?