The Green Industry's Resource Center

tinman · #1 02-15-2010, 07:19 PM

Folks in this Michigan city need to voice their displeasure....
http://www.hometownlife.com/article/...98+a+bad+idea+

DiyDave · #2 02-15-2010, 08:42 PM

This one is going to go political. For the record, Maryland tried it a coupla years ago, failed miserably, as I recall, but these are different times, and Michigan is a different, and broker state. Maryland's motto is if you can dream it, we can tax it! Michigan's is, it seems, we tax dreams, too!

meicher806 · #3 02-15-2010, 09:15 PM

Wi has been taxing us for as long as i can remember on the lawn/landscape side, still no tax on plowing, we cant charge sales tax for salt, yet we incure the tax when we buy it.

Swampy · #4 02-16-2010, 07:13 AM

Quote:

Originally Posted by meicher806

Wi has been taxing us for as long as i can remember on the lawn/landscape side, still no tax on plowing, we cant charge sales tax for salt, yet we incure the tax when we buy it.

On the landscape side WI doesn't tax Decks, patios, Retaining/decortive walls, or fencing. So those are safe to. See Pub 210 http://www.revenue.wi.gov/pubs/pb210.pdf

terrapro · #5 02-16-2010, 08:42 AM

Michigans Government is mentally ******ed. This is the third year in a row they have tried to tax lawn/landscaping but NOT golf...wtf?! BS is what I say, getting your lawn mowed and buying a gumball(yes gumball machines will be taxed) is a luxury but golfing is not.

They want to lower the sales tax to 5.5% and inact this stupid luxury service tax. I would not mind the sales tax being increased which will effect everyone across the board and buying new TV's and cell phones is a luxury it should be taxed...ALOT.

KeystoneLawn&Landscaping · #6 02-16-2010, 10:46 AM

Here in PA some landscaping is taxed, some is not. Makes things confusing sometimes. Mostly if it is a service, like mowing, then its taxable. New installs that improve the property are not taxable. On the service end, mowing is taxable, but trimming of shrubs isn't. Both seem to be services to me! Like most states snow plowing isn't taxable. Our Governor wants to reduce the state tax from 6% to 4% and add 74 new items to the tax list, don't know if any of the 74 are related to our business. IMO, lower the rate to 3% or 2% and make everything taxable. Would make things easier for everybody. I have had customers complain when I charge tax because their previous LCO didn't. I tell them I can't explain why their previous LCO didn't charge, but it is a taxable service. I carry a copy of the state code with me just in case!

meicher806 · #7 02-17-2010, 09:25 PM

Quote:

Originally Posted by Swampy

On the landscape side WI doesn't tax Decks, patios, Retaining/decortive walls, or fencing. So those are safe to. See Pub 210 http://www.revenue.wi.gov/pubs/pb210.pdf

Ok, you got me there I dont do too much on the landscape side, i forgot that there are a few things that dont get tax'd

David Haggerty · #8 02-16-2010, 06:42 AM

Ohio has sales tax on mowing service, and I like it. Because anyone who is going to deduct the expense of mowing has to have a service provider that collects and pays in sales tax. Otherwise they'll be flagged for an audit.
It's better than a license to keep out the fly-by-night operators.

It ain't like it's a tax on ME. I just collect it and pay it in to the state.

Sure it's a big PITA to operate a business. (OK, pain for my wife) With all the taxes, insurances, license etc.

More and more, the computer bases are linked. Workers Comp, IRS, Pesticide license, and insurance. And those figures had better match.
Without taxes it's all kind of toothless, and lets a lot of guys fly under the radar. Not so when you involve the IRS. "They don't mess with the IRS".

So if you're having problems with illegal labor, unlicensed competition and the like you can learn to appreciate a sales tax.

JohnnyRocker · #9 03-15-2010, 10:39 PM

Quote:

Originally Posted by David Haggerty

Ohio has sales tax on mowing service, and I like it. Because anyone who is going to deduct the expense of mowing has to have a service provider that collects and pays in sales tax. Otherwise they'll be flagged for an audit.
It's better than a license to keep out the fly-by-night operators.

It ain't like it's a tax on ME. I just collect it and pay it in to the state.

Sure it's a big PITA to operate a business. (OK, pain for my wife) With all the taxes, insurances, license etc.

More and more, the computer bases are linked. Workers Comp, IRS, Pesticide license, and insurance. And those figures had better match.
Without taxes it's all kind of toothless, and lets a lot of guys fly under the radar. Not so when you involve the IRS. "They don't mess with the IRS".

So if you're having problems with illegal labor, unlicensed competition and the like you can learn to appreciate a sales tax.

I guess if the fly by nighter has commercial properties. I don't see home owners deducting. JMO

David Haggerty · #10 03-16-2010, 06:43 AM

Quote:

Originally Posted by JohnnyRocker

I guess if the fly by nighter has commercial properties. I don't see home owners deducting. JMO

True...Homeowners can't deduct unless they're medically unable to mow their own lawn. Then they have to itemize and most don't.

But homeowners are still obligated to pay sales tax. (there's an exemption in Ohio if your neighbor mows your lawn) So if they write the LCO a check, there's a record. And it better have sales tax.
If someone collects sales tax and don't pay it to the state, It's a crime.

I make it part of my sales pitch, "I'm licensed, insured and collect and pay in sales tax."
Then I watch their faces when they get an expression kind of like this;