Lawn Cutting & Tax

Discussion in 'Business Operations' started by zinkjo, May 10, 2005.

  1. zinkjo

    zinkjo LawnSite Member
    Posts: 98

    This is our company's first year cutting grass. We only accepted a small client base (10 accounts) for our first year. When giving the initial proposals we charged anywhere from 27-30 $'s per cut. We bill on a monthly basis and even have a WEB site where the customer can view their current bill for the month. When we gave out the initial proposals we didn't mention anything about tax. When we sent out our first bill's last month we had one customer throw a fit and actually just dropped us today. Instead of their expected $54 they received a bill for $57.24.
    No one else had a problem with it. To avoid future problems I will include a "not including tax" on the estimate.
    Do you think we misrepresented the customer by not showing tax on the $27/cut proposal or is this just a cranky customer?
     
  2. jbell113

    jbell113 LawnSite Senior Member
    Posts: 654

    When you tell a customer $50 for a month ....you better send a bill for $50 that month. You should include your tax in the estimate and not even tell them. that way they have no idea there paying tax.
     
  3. gwwilson

    gwwilson LawnSite Member
    Posts: 89

    ALWAYS !!!!!!!!!!!!!!!

    put in somewhere in your literature +++++ estimates *********

    always include the following statement.........

    6% Sales Tax

    we'll your learning now ........................................
     
  4. Dashunde

    Dashunde LawnSite Senior Member
    Posts: 628

    Is this truly a taxible thing? I dont think labor has a sales tax in MO.
     
  5. zinkjo

    zinkjo LawnSite Member
    Posts: 98

    yes. it is taxable in nj.
     
  6. greenwithenvylandscape

    greenwithenvylandscape LawnSite Member
    Posts: 134

    We deal with a nursery here in FL and they have a sign up that says "we don't charge tax, we collect it"
     
  7. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    Yea i always tell customers its $XXXX Plus tax (7% here). Clears up confusion.
     
  8. brunosplace

    brunosplace LawnSite Member
    Posts: 33

    I agree with the others, you should have said it up front, or broke down the invoice to show the taxes, bringing the total to the $54 that the customer was quoted. Most people don't like surprises on the invoice even if it is a small amount. Thankfully there is no sales tax on labor here in MI.
     
  9. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    <marquee loop="infinite" bgcolor="#DDDDDF"><font color="#000000">Have a tax question? Ask our CPA. Click Here </font></marquee>

    Hi zinkjo,

    I am sorry that happened, but how would you have known? This is just a live and learn moment.
     

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