Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #11  
Old 09-22-2010, 08:58 AM
terrapro's Avatar
terrapro terrapro is offline
LawnSite Bronze Member
 
Join Date: Sep 2006
Location: mid-mich
Posts: 1,234
Quote:
Originally Posted by MarcSmith View Post
so if I pay 10bucks for a plant with a 6% sales tax. I pay the retail cost plus tax. 10.60 I then charge my client $10.60. no markup no fees. they are the end user. the retail sales tax has been paid...

but in a nutshell, it would be hard to prove that you did not mark up the materials cost. but again if you have the client buy there material and pay the sales tax on it. they are the end user... they have paid the tax, you are just installing what they bought...

the problem with doing it this way is that you lose the retail markup, which will add significantly to the profit on any job...
Yep, if you don't mark it up and you paid sales tax when you purchased the materials then you don't need to collect again because it has already been paid. In your accounting just call it material reimbursment or something along those lines.
__________________
Terrapro Landscape Service
Landscape maintenance and gardening services
Licensed and insured professional horticulturalist
Snow removal- commercial and residential
www.terraprolandscape.com
Equipment list- A bucket and some pruners.
Reply With Quote
  #12  
Old 09-22-2010, 09:01 AM
garden.nanny's Avatar
garden.nanny garden.nanny is offline
LawnSite Member
 
Join Date: Jul 2010
Location: Cincinnati, OH
Posts: 29
Love the government! Why, if I buy from a retailer, and pay the tax and show the receipts showing tax was already paid, why would it have to be collected again? I don't even mark up the plants. It's like being a personal shopper. I give the receipt to the customer and they reimburse me.

Craziness.
__________________
Susan
The Garden Nanny
Reply With Quote
  #13  
Old 09-22-2010, 09:05 AM
garden.nanny's Avatar
garden.nanny garden.nanny is offline
LawnSite Member
 
Join Date: Jul 2010
Location: Cincinnati, OH
Posts: 29
P.S. I charge them for the time I put into shopping for them. I don't plant many plants - just usually replacements for those that have bit the dust. So marking them up isn't going to make me rich. I'm a one person operation- maintenance is my specialty and I am not a landscaper.
__________________
Susan
The Garden Nanny
Reply With Quote
  #14  
Old 09-22-2010, 09:06 AM
garden.nanny's Avatar
garden.nanny garden.nanny is offline
LawnSite Member
 
Join Date: Jul 2010
Location: Cincinnati, OH
Posts: 29
Another P.S. Plus doing it that way - the retailer guarantees them for 1 year and I don't have to lose $$ on replacement. Just show the receipt and voila.
__________________
Susan
The Garden Nanny
Reply With Quote
  #15  
Old 09-22-2010, 09:17 AM
starry night's Avatar
starry night starry night is offline
LawnSite Silver Member
 
Join Date: Feb 2009
Location: Ohio's North Coast
Posts: 2,105
Those are good points, Susan. In Ohio it is OK to pay the tax on resale items and then merely include that to your customer. But again, you are filing a sales tax return through your service vendor's license for your labor, right?
__________________
Phil Bauer
Starry Night Lighting


"This little light of mine, I'm gonna let it shine."
Reply With Quote
  #16  
Old 09-22-2010, 09:37 AM
Johnny test's Avatar
Johnny test Johnny test is offline
LawnSite Senior Member
 
Join Date: Dec 2006
Location: Lexington,KY
Posts: 568
Quote:
Originally Posted by dirtandhoops View Post
Susan, I assume you are collecting sales tax for Ohio when you do your maintenance work. So why wouldn't you collect it on the plants, also.

(For those of you not in Ohio, up until 20 years ago landscapers only collected sales tax on materials. The state needed more revenue and started applying sales tax to certain services, among them landscaping and auto repair.)
I agree with Marc. It seams this doesn't work in Ohio..That must stink for you guys...I checked into service tax in KY and found that there is none as of this year but they are looking into it....If you buy in KY and plant in OH or vise versa who knows?... Id go with OH just to be safe, They will always find a way to stick it to ya....
__________________

97' ISUZU NPR (16' bed)
John Deere F687 60" 7iron w/MCS
John Deere GS30 36"
John Deere GS45 48"
John Deere JS45 21"
Stihl FS80 Pro Trimmer
Stihl FS46 Trimmer
Stihl BG55 Blower
Stihl BR56 X2
Stihl BR600 X2
Red Roo Auger
BRD-280 Bed Redefiner
Echo PE-280 Stick Edger
Echo SHC 212 Hedge Trimmer
Bluebird 24" De-Thatcher
Olathe 88 Plug Aerator
Yard Machines walk-behind Edger
Craftsman Lawn Vacuum/chipper
2-Homelite BP250 backpack blowers
McCullock FR56 Trimmer


Reply With Quote
  #17  
Old 09-22-2010, 10:30 AM
starry night's Avatar
starry night starry night is offline
LawnSite Silver Member
 
Join Date: Feb 2009
Location: Ohio's North Coast
Posts: 2,105
Quote:
Originally Posted by Johnny test View Post
Ohio....They will always find a way to stick it to ya....
That's why so many businesses started leaving Ohio 20 years ago.
(Not because of sales tax.) Statewide income tax and many other taxes which made Ohio business-unfriendly.
__________________
Phil Bauer
Starry Night Lighting


"This little light of mine, I'm gonna let it shine."
Reply With Quote
  #18  
Old 09-22-2010, 08:27 PM
silverado212's Avatar
silverado212 silverado212 is offline
LawnSite Senior Member
 
Join Date: May 2009
Location: Cincy, OH
Posts: 373
Ohio sales and use tax law says that you have to collect sales tax on mowing services also. Sucks but better to be safe than sorry. You have to give a tax exempt form either unit or blanket to the supplier you are purchasing from. You pay flat rate to supplier then collect appropriate tax per county in OH. Susan not to sound like an a$$ but hopefully you are collecting and paying tax on your services. All the info you want to know is online and in the info you receive from the state when you get your service vendors license.
__________________
The human body has two ends; one you create with and one you sit on. Sometimes people get them reversed and thats when they need a good kick in the seat of their pants. - Theodore Roosevelt

http://www.razorsedgelawn.com/
Reply With Quote
  #19  
Old 09-22-2010, 10:41 PM
integrityman's Avatar
integrityman integrityman is offline
LawnSite Bronze Member
 
Join Date: Mar 2007
Location: North West Ohio
Posts: 1,686
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!
Reply With Quote
  #20  
Old 09-22-2010, 11:17 PM
starry night's Avatar
starry night starry night is offline
LawnSite Silver Member
 
Join Date: Feb 2009
Location: Ohio's North Coast
Posts: 2,105
Quote:
Originally Posted by integrityman View Post
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.
__________________
Phil Bauer
Starry Night Lighting


"This little light of mine, I'm gonna let it shine."
Reply With Quote
Reply

Tags
kentucky , ohio , sales , service , tax

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 12:12 AM.

Page generated in 0.10659 seconds with 9 queries