Florida Sales Tax ???

Discussion in 'Starting a Lawn Care Business' started by Grits, Aug 29, 2006.

  1. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    ;) Being in Florida....do we have to include sales tax on our services? I have heard yes and no. OR where could one find this information. I have looked and can not seem to locate anything. Thanks you guys.
  2. Poncho25

    Poncho25 LawnSite Senior Member
    Posts: 369

    Depends on what your doing...if your selling a product to a client, like mulch, plants, sod and your not charged the sales tax from the nursery then yes you charge it, otherwise no. If your just doing lawn maintenance then no you do not charge any sales tax.
  3. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    Poncho25, Thanks for the info. That's kind of what I figured, but I wasn't sure.
  4. fulano

    fulano LawnSite Senior Member
    Posts: 319

    I don't know anything about floridas tax laws but I think you may be wrong.
    If a nursery charges you sales tax and you resale the plants for the same price you bought them for you may be okay but if you resale the plants to your customers for more than what you paid before taxes you are probably liable for the difference. You may also have to pay sales tax for the install of those plants.


    A. You paid $50 for some plants and tax is $5. You charge the customer $55 for the plants. That might be okay.

    B. You paid $50 for some plants and tax is $5. You charge the customer $100 for the plants. That is probably not okay because the state and local government are being cheated out of $45.

    Probably can find out more info on a florida dept of revenue website.
  5. Total.Lawn.Care

    Total.Lawn.Care LawnSite Senior Member
    Posts: 841

    Okay, from an accountant, here is the deal. Most of us are in this industry as a purely service industry. So, as you are providing a "Service" then NO, there is no sales tax. They way around this when you bring products to a job is all abotu how you write the invoice out. If you are installing a Flower Bed and you provide the Bushes, Flowers, Mulch and labor, then write the invoice as follows:

    Flower Bed Installation at XXX Main Street $1400.00
    Scope of Work Includes:
    - Installtion of XX Bushes
    - Installation of XX Yards Mulch
    - Treatment for Weeds
    - whatever else you provide

    This way you are not "Selling" them the plants, mulch etc.. It is part of the service you provide. So when you buy them, pay the sales tax on these items at purchase and then they become part of your service.

    That is how most of us do it in Georgia, because I am not keeping inventory nor am I going to do item maintenance for all fo thise small items. I provide a service, and may include these items in my service.

    This is no different that when you install an irrigation system. You are going to charge the customer a "Price" for the installation and you supply all of the matieral. You are not going to put a line item on teh customers invoice for 1400 ft of pipe at $XX plus tax.

    Just remember that it is all a service to the customer and you "Provide" the supplies in your price. I suspect that in most states that do not charge tax on services (which is the majority of the 50) would do their billing this way.
  6. Poncho25

    Poncho25 LawnSite Senior Member
    Posts: 369

    everything he said is a better way of what I said :) this is just more broken down and explained better on how it works.

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