Taxes?

[eazy]

Hello,
Have a question on Taxes. I live in the Texas area were the sales tax is 8.25. The question is, If I estimate a job (mow a yard and so on) for 100 dollars, do I charge 108.25?
My girlfriends brother in law said that you cannot include sales taxes on services.

If you could, please give some input on how you include taxes so you will not get yourself in trouble.

Thanks for your time,
eazy

[Woody82986]

You don't need to tax residential lawns but any work you do for a commercial business you should be adding tax to and reporting that money to your collector.

[lawnman_scott]

charge $108.25. Your girlfriends brother in law is as crazy as your sales tax%

[badranman]

Ours is 15%!:eek:

[eazy]

Thanks for the early input. But, Why don't you have to charge sales taxes for residential lawns?

Thanks,
eazy

[Woody82986]

That's a good question. I'm not really too sure but that is what my accountant tells me.

[CLCODY3]

You do need to collect taxes for yard work check this link out.
http://www.cpa.state.tx.us/taxinfo/taxpubs/tx94_112.html

[eazy]

Hey CLCody 3, Great site, Thanks for your time and help!!

It is people like this and others with their input that make this site such a great one!!!

Thanks,
eazy

[missytheaccountant]

Come work in alabama.....there is no sales tax on labor....lol

[Grassmechanic]

No sales taxes on labor in MI, either. But our fine liberal governor is working to change that.

[gramps]

Originally posted by badranman
Ours is 15%!:eek:
cradle to grave costs.

[Hodge]

The statement of not on residental yards in TX is incorrect. Any sales of services, sales taxes are due on. The TX Comp Controller office in Austin would be of better help than that "CPA". Basically he is setting you up for a fall and owing a "large" chunk of cash at the end of the year... if it is being reported correctly.

[URL=http://www.window.state.tx.us/m23taxes.html[/URL]

[Team Gopher]

CLCODY3 great link. Very informative!