Sales Tax

[1MajorTom]

Hiya,<p><br>I have a question concerning sales tax on grass cutting, hedge maintenance, etc...<p>Is everyone charging it?<p>Here in Pennsylvania, sales tax is 6%.<br>Our first year, we made a mistake when doing our bids. We did not include sales tax in the bids.<p>So say we bid a yard at $45.00 per cut.<br>Because we said $45.00 initially, I kept it that way. So $42.45 would be the price and $2.55 would go for sales tax.<p>This year we really wised up. A $45.00 yard is now $47.70. We tell each customer upfront that we charge sales tax.<p>But we find that some people balk at the idea. They say they want to pay us cash instead. We explain to them that we are a fully insured legitimate business and that we must charge the tax.<p>So my question to you guys/gals out there, are you all charging the sales tax? And if you do, then do your customers understand? Our accountant said that we had to charge the tax, no way around it. <p><br>Major Tom's wife

[mowerman90]

Speaking as a former &quot;Pittsburgher&quot; (born and raised in PA)the soulutions a simple one: Move to Florida! There's no tax on labor, also no state income tax. The only thing I miss about PA is the Steelers.

[CA Enterprises]

Yes, I charge it!!!! When I do a bid I tell them it doesn't include the tax. And if it is a formal bid on a bid sheet at the bottom I add the statement &quot;Does not include Tax&quot;. I haven't had anyone question this yet. If they did they can pay or I walk. <p>There is another guy here who doesn't say anything about tax but adds it to his bid, it is included already.<p>Adam:)<br>

[GroundKprs]

In Indiana there is no tax on services, just on sales of products. We have to charge tax for fertilization, and for materials like shrubs, edging, flowers, sod, etc. The customer gets the labor without tax. <p>----------<br>Jim<br>North central Indiana

[yardsmith]

In Ohio I have to pay sales tax by the 23rd of every month.<br>Customer gets 6.25% added onto their bill for mowing. Only had 1-2 people ever say anything about it. Others accept it- it's not my law, it's the state! If I do landscape renovation, I add sales tax to labor only, not materials (that's in their cost already). A $25 lawn is billed for $26.56.<p>----------<br>Smitty ô¿ô<br>

[MOW ED]

Yes I charge the sales tax on both lawn care and fertilization. I still bid as you did with a round number as I padded my estimates to include this tax. I found it to be easier. It now gives me the opportunity to raise my rates by 5% if I want to by implimenting the tax. <br>I just started my fert business this season and all customers get an invoice that has tax itemized. On the other hand, I have a sellers permit and don't pay tax on any of my ferts or pesticides when I purchase them from the dealer. Good Luck.

[Scraper]

From PA here too and of course I charge sales tax as required by law. If the customer has a problem with it I keep a copy of the tax regulations in my truck which shows what are taxable services and what are not. Haven't had a problem yet. Although I had some new accounts tell me that they weren't paying their &quot;old&quot; lawn service sales tax. My reply is...&quot;well I guess that your &quot;old&quot; lawn service probably wasn't insured either&quot;. Makes my biz look like a class act!

[Eric ELM]

I'm sure glad Illinois don't have tax on labor. Sounds like a hassle<p>----------<br>&lt;a href=&quot;http://pages.prodigy.net/eric.erickson/&quot;&gt;Eric@ELM&lt;/a&gt;<br>The Grass is always Greener on the other side of my competitors fence

[Greenkeepers]

Same as Smitty here! We have to charge it too!! Like others we made the mistake and included it in the price of a cut. This year it is on top. We charge tax on everything, mulch,shrubs,fertilizer etc....<p>Mike<br>Greenkeepers

[jcoat]

If your state has one, goto the tax commission web-site and find if they offer classes on taxation. Oklahoma offers the workshops for free and the administrator offered his # and e-mail for business-related questions. It sure ironed out a lot of questions I had and the class was only two hours long.<br><p><font size="1">Edited by: jcoat

[Prime Seasons]

welcome to michigan. <p>Our sales tax is 6% on products sold (not services) only.<p>gus

[richard2]

in wash state it's 8.6% and gonna go up!

[thelawnguy]

Make it perfectly clear to your customers, you do NOT &quot;charge&quot; sales tax, you &quot;collect&quot; the sales tax as an agent for the state. This will take the heat off yourself for the extra amount.<p>Go to the seminar your state dept of revenue services has maybe once a month, this is the first thing they drill into the heads of new tax permit holders.<p>Bill

[bdemir]

Say Yes to Michigan!

[Richard Martin]

There is no sales tax on labor in Maryland.

[Getmow]

No tax on services in VA.

[Charles]

No tax on services in SC.

[Tony S]

No labor tax in MA. Materials is 5%<p>----------<br>&lt;A HREF=&quot;mailto:procutlawn@hotmail.com&quot;&gt;Tony S.&lt;/A&gt;<br>

[1MajorTom]

Thanks guys for all the response.<br>Definitely liked the hint from lawnguy stating that it is best to tell customers that we 'collect' sales tax, not charge it.<br>I'll be sure to say that next time.<p>

[Twotoros]

As of about 5 years ago , here in Wa. state , some services had to start charging the tax. Lawncare was one . Haircuts were not(???!!)It was mid-season ,july;<br>and I had to explain the new charge to all my customers . I lost about ten because of the new tax. It sucked but now is a way of life .Of coarse the local scabs charge no sales tax,

[Blackhawk Lawn Care]

In Wisconsin, its 5.5% on products sold and services provided. There are a few services that are tax free or exempt. Personally, I pay the sales tax up front on products, bought, it saves the hassle of figuring it out on partial product sold, and overcollection of tax....

[cutntrim]

Ontario charges 7%GST (Goods & Services Tax) so we collect it from our customers on all work done and remit it to the government quarterly. If we were a nursery we'd also be charging 8%PST (Provincial Sales Tax). Just about everything we buy up here has that 15% tacked on to the final price...sucks.<p>----------<br>Dave in S.Ontario<br>www.cutntrim.com