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Old 09-20-2010, 07:25 PM
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garden.nanny garden.nanny is offline
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Question on when to collect and pay taxes on plants

I am in Ohio. I have been asked to install some shrubs and trees for one of my clients in Ohio. The client had some shrubs/trees die and wants them replaced. This is not what I normally do - I usually only do maintenance services. I don't want to turn it down for another company to come in and install over the top of my servicing. I need to purchase them at the wholesaler because I cannot find the plants at a retailer. I have always purchased retail for customers so I do not have to deal with the tax. Then I charge my client a fee for my shopping service and let them pay for the plants from the nursery receipt.

1- However, to purchase the plants wholesale what do I need to present to them? A Vendor's license? Or is a Service Vendor's License enough?

2- If I am "installing" the plants, do I even charge sales tax or is it covered on my service tax?

3- Do I need to hold a license in every state I purchase in? Which seems crazy since I am not installing in the same state I purchased the goods. Plus that would be impossible to pay Ky and Oh a cut....sorry if I sound confused but I am.

4--If I purchase wholesale in KY and install the plants in OH how do I handle the tax reporting, who do I pay the tax to?


Any and all help would be appreciated!
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  #2  
Old 09-20-2010, 07:56 PM
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CLARK LAWN CLARK LAWN is offline
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you need a service vendors license to buy wholesale, you buy tax exempt and then collect the tax from customer. you are also going to need a nursery dealers license, yes you read that right. dont try to get out of the sales tax thing it must be a separate line on your invoice. i guy i know ended up out of business do to sales tax. ( he never collected or payed the state, got caught and they went to the day he started his biz and assessed it on everything he made. with interest and penalties he was over 100K in the hole to the state)
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Old 09-22-2010, 09:41 PM
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integrityman integrityman is offline
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Quote:
Originally Posted by CLARK LAWN View Post
you need a service vendors license to buy wholesale, you buy tax exempt and then collect the tax from customer. you are also going to need a nursery dealers license, yes you read that right. dont try to get out of the sales tax thing it must be a separate line on your invoice. i guy i know ended up out of business do to sales tax. ( he never collected or payed the state, got caught and they went to the day he started his biz and assessed it on everything he made. with interest and penalties he was over 100K in the hole to the state)
clark is 100% correct....buttttt I can buy them for you and charge a small mark up + tax..... PM me with what you want and I can get ya prices and product...

Licensed...bunches of em.... Nurserymens license went up to 125$ from $75... a-holes!
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Old 09-22-2010, 10:17 PM
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starry night starry night is offline
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clark is 100% correct....buttttt I can buy them for you and charge a small mark up + tax..... PM me with what you want and I can get ya prices and product...

Licensed...bunches of em.... Nurserymens license went up to 125$ from $75... a-holes!
You forget that she is looking for a guarantee; can't get it from the wholesaler or you as a re-wholesaler.
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Old 09-22-2010, 10:28 PM
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True, but Id get her a great deal and help her keep some business and make some $$. Since she maintains it Im sure her work is great. I'd guarantee it if the purchaser/ customer promises me they will follow my care instructions to the letter.

My offer stands to her or anyone else on here needing good deals on wholesale stock. I can and will get it for ya for a small markup.
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Old 09-23-2010, 12:05 AM
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garden.nanny garden.nanny is offline
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Hey thanks! Mighty American of you!! I have found out that I can buy in KY with NO problem - wholesale.

And yes I got my license as of Aug. I didn't do any work in July. Before that it was like 3 jobs to make sure this was going to work. I want to only do it right or not do it at all. Someone asked me why I made it a business...Said to do it as a "hobby"....I guess to "hide" the money ????

Not to look a gift horse in the mouth BUT - how does someone else buying the plants for me fix anything? If I am still planting it doesn't that mean I have to have the license? The law states that if you purchase and plant that you have to have a license. You have to have a holding area to store it in between buying and planting It sounds like a huge government racket to me!!

What does the Nursery Dealer License protect? I'm just not understanding this. Is it so I don't install infested stock or what?

Please help me understand this stupid process! Sounds like we all need to march on Washington - The little guy has a hard enough time making $$.

No matter what - I have to have the license.
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Old 09-20-2010, 08:38 PM
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It will vary from state to state. here we dont need anything But our sales and use tax permit to prove were in the business. we show that and presto.
and we do not pay tax when purchaseing, we collect the tax from the customer then apply it like any other that we collect at the time we turn it in.

I say at the time. because here in TX. if you collect 500.00 or more per month you will have to pay monthly.
if NOT then it's quartley

you need to find out for your state. like stated above. DONT SCREW AROUND WITH THIS
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Old 09-20-2010, 09:31 PM
MarcSmith MarcSmith is offline
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what if....you bought them retail and then resold them to the the client. you have already paid sales tax...

Or have the client pay for the shrubs directly, and then you only charge for labor to transport and install....

one way around the sales tax issue...potentially....
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Old 09-20-2010, 10:21 PM
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CLARK LAWN CLARK LAWN is offline
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Quote:
Originally Posted by MarcSmith View Post
what if....you bought them retail and then resold them to the the client. you have already paid sales tax...

Or have the client pay for the shrubs directly, and then you only charge for labor to transport and install....

one way around the sales tax issue...potentially....
not here. also make sure you get your nursery dealers license. if the dept of ag catches you they will confiscate all your plants and by the time you get them back they will be dead.
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  #10  
Old 09-21-2010, 02:59 PM
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Thanks everyone for the wisdom and info! I like Marc Smith's idea - that's pretty much what I have been doing. Why is that not OK in OH Clark?
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