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View Full Version : Just starting out and have a question about sales tax


Byerley
12-08-2011, 11:26 AM
I have always lived in oregon where there is no sales tax. But now I live in Washington where there is sales tax. Do I need to charge sales tax for services or just for goods like sod , bark and things like that.

ralph02813
12-08-2011, 04:00 PM
I have always lived in oregon where there is no sales tax. But now I live in Washington where there is sales tax. Do I need to charge sales tax for services or just for goods like sod , bark and things like that.

Generally keeping track of sales tax is more trouble than it is worth. Generally you get a sales tax exempt certificate from your state and present it to your wholesaler who doesn't charge you sales tax. We you resell that item you charge sales tax. I just pay it when I buy and include it in the price for the customer.

Byerley
12-08-2011, 04:21 PM
Generally keeping track of sales tax is more trouble than it is worth. Generally you get a sales tax exempt certificate from your state and present it to your wholesaler who doesn't charge you sales tax. We you resell that item you charge sales tax. I just pay it when I buy and include it in the price for the customer.



Cool sounds like I am on track then. Do you charge tax for services though

ralph02813
12-08-2011, 05:17 PM
check with your state each state is different we don't

Kelly's Landscaping
12-08-2011, 06:48 PM
Some states exempt certain industries or services and just hit retail it would help if someone from WA would answer you were about 3000 miles apart. Now our state just elected a dem Gov and first thing he did was changed the sales tax rate so now I got some weirdo fraction 6.35%. But any one that owes me money before this went in is still at 6% then they have a new rate for things over 50k at 7% but it doesn't end there car rentals are now like 9%. You get the idea though each area can be different so read the laws very carefully.

newz7151
12-08-2011, 07:09 PM
Cool sounds like I am on track then. Do you charge tax for services though

I would advise you to check with you local comptroller or tax collector on both parts, and not rely on what you have just been told.

If you buy a car, you pay sales tax on it, if you resell the vehicle you are supposed to be collecting sales tax again and paying it in. Same goes for any equipment being used in your business, a lawnmower for example, you pay sales tax when you buy it, if you resell it to somebody else later, you are SUPPOSED to collect sales tax on that amount again...

Darryl G
12-08-2011, 07:14 PM
Here in CT everything is taxed but the state considers landscapers/contractors the end users and so you're supposed to pay the tax rather than buying it tax exempt and then seperately tax any markup, but nobody does it that way. I figure what's the difference, as long as they get their tax. However if it's something that I buy and keep in inventory and may not end up charging a customer for (like grass seed and straw for spring plow damage repair) I go ahead and have the vendor tax it at time of purchase.

I would find your state's tax revenue website online or call them and find out for sure because penalties can be nasty!

Kelly's Landscaping
12-09-2011, 08:44 AM
I would find your state's tax revenue website online or call them and find out for sure because penalties can be nasty!

Their favorite hit on us started about 3 years ago when all of a sudden sending the sales tax in quarterly wasn't good enough. Now it is monthly for us and has to be done online sounds simple enough. Here's where they screw us if your not required to pay it on line but choose too you can pay it 1 min till midnight the last day of the month and its considered on time. But if they say you have to pay it on line like they do for us they want it 3-6 days before the end of the month give or take. See where suppose to know what the gov workers are taking for holidays that month and how they want to handle the month weather it ends on a weekend or some gov worker 5 day weekend. Basically what happens and this has many times it's like the 26th or 27th of the month we go online to pay and the site goes ohh I'm sorry its 6 pm you now have a late penalty to add on this amount had you done this before 5 pm you would not have better luck next time. Now keep in mind this all automated and the money is taken out via wire so this is absolutely unnecessary its done as a way to cheat a little extra out of businesses. And the ever changing dates is how they trick you. Now they claim you can summit it early in the month and pick the date you want them to take it from your account sounds great but the next line states if they need it earlier you have just given them permission to take it when they feel like it. :laugh::laugh::laugh:

Darryl G
12-09-2011, 08:52 AM
Hmmm...I pay quarterly but now they have stopped sending me the forms to save money. I was 1 day late with my sales and use tax years ago and they applied their penalty to the gross sales, not the tax due, and if I recall it was like 8 or 9%. Luckily it was for the first quarter and we didn't have much snow that year, so it was only a few hundred dollars.