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aperfectlawn
08-26-2004, 01:09 AM
Does anyone include sales tax on their bid? Do you figure it in anywhere. Do you make a note saying "sales tax is not included"? Or do you show sales tax added on the final price?

printer88
08-26-2004, 01:30 AM
I just add it to the price when the work is done.If they don't want to pay taxes.I don't want to work for them.

olderthandirt
08-26-2004, 01:38 AM
On contract it list price for services and then it say + sale tax under that is a line we fill out like a check. Written as a total cost, IE. $1000 + $65 tax
total cost for sevices will be ONE THOUSAND AND SIXTY FIVE DOLLARS.


Mac

Dwan
08-26-2004, 01:56 AM
eather way. if people live in a tax area then they should expect to pay it weather it is on the perposal or not.

aperfectlawn
08-26-2004, 10:07 AM
Should I let them know when I give them a bid that sales tax is not included. Or should I give them a surprise come time for a invoice?

olderthandirt
08-26-2004, 10:54 AM
Originally posted by aperfectlawn
Should I let them know when I give them a bid that sales tax is not included. Or should I give them a surprise come time for a invoice?

The Surprise might be that they thought taxes were included and will look for someone cheaper. Why cause trouble for yourself? Let them know upfront.

Mac

LwnmwrMan22
08-26-2004, 11:21 AM
I just put in my bid "taxes are included". I figure out my price, then figure the tax. I add the two together and round up to the next $5. That's my total.

I then take my total and divide by 1.065 (or 1.0(whatever your tax amount is)) and that's the amount I'm actually charging for the service. Then the difference between that and the total is the amount of tax that I have to send in.

I know it sounds complicated, but that way my quotes always end in an even "5" number, I don't get quotes like $453.68, they would always be $455, a nicer number in my opinion.

It's not as complicated as it sounds since my accounting software does this for me.

QC Lawn Services
08-26-2004, 11:44 AM
We have totaled up our services and have included a line saying, "price w/o sales tax". As long as people know that it coming, I think they won't have the "surprise".

dkeisala
08-26-2004, 12:10 PM
I put in the bid that prices do not include state sales tax. It amazes me that people are surprised to find out we have to charge sales tax. I'll be sending the great state of Washington over $7,000 in collected sales tax this year!

Gravely_Man
08-26-2004, 12:14 PM
Either way you need to put a note that tax is included in the price or that tax is not included in the price. You can't surprise people on the bill and expect them to be happy.


Gravely_Man

dkeisala
08-26-2004, 12:21 PM
Originally posted by Gravely_Man
Either way you need to put a note that tax is included in the price or that tax is not included in the price. You can't surprise people on the bill and expect them to be happy.


Gravely_Man Yeah, but I also think this is BS and just proves how stupid people are. I go shopping for anything else and the price doesn't include sales tax on the sticker nor are there any signs or disclaimers laying around the store indicating I will be charged sales tax additionally. The only reason I do it is to avoid the stupid factor and to prevent yet another problem with an ignorant person.

Gravely_Man
08-26-2004, 01:44 PM
dkeisala, unfortunately you need to do this to prevent the "stupid" customers from raising hell.


Gravely_Man

fcl01
08-27-2004, 12:16 AM
our contracts have always said$__________.__ plus tax. but every year almost 40% of our clients claim that they were unaware of our intent to charge tax. even when i circled and highlighted that part, we still had problems. Now, i write it out in big idiot-proof writing and tell the client multiple times what the tax rate is and the sub-total, tax and total is. I dont want to argue with people before i get paid.

TrueTrim1
08-27-2004, 12:52 AM
On my bid, I include a subtotal line, a line for sales tax, and a total line. So it is clear to the customer what my bid is, what the sales tax is, and what the total amount they will be paying is. So far, I have had no probelms or complaints about surprises over sales tax.

aperfectlawn
08-27-2004, 01:28 AM
Two days ago I placed a bid and did not include sales tax. It slipped my mind. What should I do?

olderthandirt
08-27-2004, 02:08 AM
Wait and see if your bid is excepted, If it is make sure that there not tax exempt and if they are not, I would tell them at that point that you are a taxable business and the figure you quoted them did not include tax, but figured they already knew that but just wanted to be sure. You are not required to collect the tax if they won't pay it. Just turn them in to the state tax auditor and they will get it from them, of course you won't be doing anymore work for that customer if it goes that far.

Mac

Precision
08-27-2004, 08:27 AM
Life is good in Florida, we are specifically exempted from having to charge sales tax.

Don't know why but I am not complaining.