how is mowing taxed

Discussion in 'Business Operations' started by shelbymustang616, Apr 4, 2012.

  1. shelbymustang616

    shelbymustang616 LawnSite Member
    Posts: 117

    We are adding mowing to our services for this year. When you bill your clients is tax already included in a 50 dollar cut or do you add tax to this 50.00.
     
  2. highlander316

    highlander316 LawnSite Senior Member
    Posts: 332

    i add it. If it's a $50 cut, I want that $50. Not giving part of it to the government.
     
  3. fastlane

    fastlane LawnSite Senior Member
    Posts: 347

    $50.00 + tax
     
  4. Roger

    Roger LawnSite Fanatic
    Posts: 5,919

    I presume you mean a Sales Tax. This has been discussed often -- a long thread in Business Section a few weeks ago.

    Sales Tax is a state issue. I see you are in PA. Go to PA Dept of Revenue web page, and get the instructions for applying for a license, what services are taxed, which are not, and how to use eTides for the monthly remittance of the revenues collected. The remittance is only done electronically. Remember that some places in PA collect 6%, others 7%. This will all be spelled out in the instructions.
     
  5. Shawn S

    Shawn S LawnSite Member
    Posts: 87

    Sales and excise taxes are collected by the seller on behalf of a government entity. The entity may be a state, county, city, etc. You need to contact the Dept of Revenue for Pennsylvania and figure it out. Most sales taxes are added on top of the sale. Most excise taxes are part of the total price.

    Edit: This page says that lawn mowing is subject to sales tax: https://revenue-pa.custhelp.com/app/answers/detail/a_id/2825

    And here it says you pay 6% state tax, and possibly local tax as well: http://www.revenue.state.pa.us/portal/server.pt/community/businesses/11406/tax_rates/580557

    Since it's a sales tax it's on top of the sales price.
     
    Last edited: Apr 4, 2012
  6. IHA Services

    IHA Services LawnSite Member
    Posts: 15

    Sales tax?! Maybe my state is different but as far as Illinois goes services are NOT taxed.

    Sales tax is only for when you are selling a product. Mowing is a service.
     
  7. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    As stated,each state id different. In NY mowing is taxable. 8.75% for me.
     

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