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JayD
03-24-2011, 10:30 PM
For those of you who collect sales tax from your customers, how does it work? Meaning, say you do lawn apps, do you just tax the product used or product and labor used? I saw a bill from one of these companies and they tax for the whole thing even the $3.00 fuel surcharge they are tacking on. Can this be OK? I always thought you could only tax product or service but not both at the same time.....Am I wrong?
I don't see how they can tax fuel surcharge?

What do you think?

JB1
03-24-2011, 10:37 PM
tax is charged on the whole amount in lawn apps.

Kelly's Landscaping
03-24-2011, 10:37 PM
I think that would depend on the state I know CT you pay 6% sales tax on services and goods. We get sales and use permits that allow us to buy items whole sale with the idea being we will collect the taxes when I resell the product to my customer. In other words they knew it wouldn't be right to collect the sales tax twice on the same item. But what ever my final bill is to my customer add 6% then when the month ends I have 30 days to file and give the state its money. Typically 1500-2000 dollars each month.

JB1
03-24-2011, 10:43 PM
For those of you who collect sales tax from your customers, how does it work? Meaning, say you do lawn apps, do you just tax the product used or product and labor used? I saw a bill from one of these companies and they tax for the whole thing even the $3.00 fuel surcharge they are tacking on. Can this be OK? I always thought you could only tax product or service but not both at the same time.....Am I wrong?
I don't see how they can tax fuel surcharge?

What do you think?





read this, it pretty well sums it up.

http://www.iplla.com/Default.aspx?pageId=870954&mode=PostView&bmi=540448

SHPSLLC
03-24-2011, 10:48 PM
I think that would depend on the state I know CT you pay 6% sales tax on services and goods. We get sales and use permits that allow us to buy items whole sale with the idea being we will collect the taxes when I resell the product to my customer. In other words they knew it wouldn't be right to collect the sales tax twice on the same item. But what ever my final bill is to my customer add 6% then when the month ends I have 30 days to file and give the state its money. Typically 1500-2000 dollars each month.

Do you find it easier to add tax to the price of say a mowing job, (for example a 30.00 lawn would be charged at 31.80) or to just take it out of the 30.00 you would collect for the lawn? Im starting out mowing on my own for the first time this year and i wasnt sure how most people add tax to the bills.

JayD
03-24-2011, 11:24 PM
read this, it pretty well sums it up.

http://www.iplla.com/Default.aspx?pageId=870954&mode=PostView&bmi=540448

Hey thanks JB, that does sum it up for the mowing.....I don't do apps, and do very little mulch, not enough that matters anyway. I used to think that the stores where you buy you food from could only charge sales tax on the their main thing (food) and not on like shoe laces, toys and such. Maybe that has changed.

But still, I don't think they should be charging sales tax on the $3.00 fuel surcharge do you? I'm not getting that gas.....

Roger
03-25-2011, 07:21 AM
The rules regarding sales tax are unique to each state. If you have a license to collect sales tax, then you have a copy of the rules that apply. Blanket statements that transcend state lines are dangerous and can be misleading.

SHP... Again, you need to check your state's rules. I suspect that most states require the tax as an itemized entry on your invoice. If you charge $30.00, and then choose to take out the sales tax, you are not providing the itemized entry. You can charge $30.00, and add $1.80 as a separate entry -- this may be how your state requires the invoice, or sales receipt, is to be prepared.

State by state ... Use the rules for YOUR state.

CLARK LAWN
03-25-2011, 09:17 AM
if you do " just tke it out of the total" be careful for 2 reasons, 1 like said above it may be required to be listed a separate line item and 2 if the tax rate changes then you can loose more money. our rate has gone from 6% a few years ago to 6.75% now. not much but it can add up quickly.

Kelly's Landscaping
03-25-2011, 09:54 PM
Do you find it easier to add tax to the price of say a mowing job, (for example a 30.00 lawn would be charged at 31.80) or to just take it out of the 30.00 you would collect for the lawn? Im starting out mowing on my own for the first time this year and i wasnt sure how most people add tax to the bills.

No you make the price and add the tax as an after thought like your 31.80 example. Now sometimes in a rare case the client may tell you what they want a job to cost including the tax and if you agree to it you end up with the even number but your price ends up with some odd ball figure. Worse still it sometimes ends in a half a cent so you got alternate the price a penny every other week. Total headache if you can avoid this do it.

SHPSLLC
03-26-2011, 12:12 AM
Thats what i was thinking, it seems much easier to keep track of the sales tax when it is listed seperately. Well thanks for the info, that is what i will do.

hughc
03-26-2011, 05:47 PM
For those of you who collect sales tax from your customers, how does it work? Meaning, say you do lawn apps, do you just tax the product used or product and labor used? I saw a bill from one of these companies and they tax for the whole thing even the $3.00 fuel surcharge they are tacking on. Can this be OK? I always thought you could only tax product or service but not both at the same time.....Am I wrong?
I don't see how they can tax fuel surcharge?

What do you think?

Here in Miss, you charge sales tax on materials and labor. Total for job.

Lefet
03-26-2011, 05:57 PM
I think that would depend on the state I know CT you pay 6% sales tax on services and goods. We get sales and use permits that allow us to buy items whole sale with the idea being we will collect the taxes when I resell the product to my customer. In other words they knew it wouldn't be right to collect the sales tax twice on the same item. But what ever my final bill is to my customer add 6% then when the month ends I have 30 days to file and give the state its money. Typically 1500-2000 dollars each month.

Not here, they're perfectly happy collecting twice!!

The rules regarding sales tax are unique to each state. If you have a license to collect sales tax, then you have a copy of the rules that apply. Blanket statements that transcend state lines are dangerous and can be misleading.

Again, not here unless you're savvy enough to find them on your own.

Here in Miss, you charge sales tax on materials and labor. Total for job.

Same here. Kinda feels like legalized extortion.

JayD
03-26-2011, 06:15 PM
How about them taxing the $3.00 fuel surcharge???? The customer would not be getting the fuel!

Kelly's Landscaping
03-26-2011, 06:45 PM
How about them taxing the $3.00 fuel surcharge???? The customer would not be getting the fuel!

Does the customer get the fuel you mow them with now no but you still collect tax on it you just have it worded differently. Calling it a surcharge changes nothing you've just raised the price to have the lawn mowed and the sales tax is based on the total price. The state doesn't care how you earn your money just that you pay a certain % of your revenue to them.

JayD
03-26-2011, 09:43 PM
Does the customer get the fuel you mow them with now no but you still collect tax on it you just have it worded differently. Calling it a surcharge changes nothing you've just raised the price to have the lawn mowed and the sales tax is based on the total price. The state doesn't care how you earn your money just that you pay a certain % of your revenue to them.

we don't collect sales tax for mowing! and I did not raise prices, have not for five years but want to..

Kelly's Landscaping
03-26-2011, 09:48 PM
Ok ummmm explain your states sales tax rules kind of hard to understand why the service is tax exempt but the surcharge isn't.

JayD
03-26-2011, 09:57 PM
Ok ummmm explain your states sales tax rules kind of hard to understand why the service is tax exempt but the surcharge isn't.

scroll up to post #4, JB1's post. Click on the link that he has on there and you can see.

bohiaa
03-28-2011, 02:27 AM
NOT only check your state, Be sure to check local too.

we provide serives for 2 countys, and the sales local tax is diffrent.

then lets talk about unincorprated areas.......

Flex-Deck
03-28-2011, 08:57 PM
Do you find it easier to add tax to the price of say a mowing job, (for example a 30.00 lawn would be charged at 31.80) or to just take it out of the 30.00 you would collect for the lawn? Im starting out mowing on my own for the first time this year and i wasnt sure how most people add tax to the bills.

My customers in Iowa know and expect the sales tax to be added to the price bid. everyone except government customers has 7% added to their bill. Thanks Brad

hughc
03-28-2011, 09:37 PM
My customers in Iowa know and expect the sales tax to be added to the price bid. everyone except government customers has 7% added to their bill. Thanks Brad

It is 7% here in Mississippi too. What ever your materials , labor, fees, subs and all. The sales tax is added to the bottom of the bill unless they give you a sales tax number and this would only work if you are sub-contracting under another contractor who is in turn going to charge the end user or customer the sales tax on total of the bill. They have to bend over and take it like a man.