NC considering adding sales tax to Lawn Servicing

Discussion in 'Lawn Mowing' started by Richard Martin, Apr 25, 2010.

  1. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Here we go.

    http://www.reflector.com/news/service-tax-prompts-discussion-32767

    I am one of the few tax paying solo operators in my area. No customer will want to pay an extra 8% on top of my, what would appear to be, premium prices. I've spoken to a lot of solos in my area. What one of them said to me puts the attitude of most solo LCOs in my area into perspective. "You're insured and pay taxes? It's almost like you have a real business."

    I only average $39 a hour now. If I have to absorb the 8% service tax I be down at $35.88.

    But, I already have a hard time selling $35 jobs when everybody else only wants $20 and $25. How could I possibly hope to sell a job when the price is jacked to $37.80 and no one else raises their prices.

    Most of my customers think I take their checks to the bank, cash them and then don't report it. I've told them repeatedly that that's not what happens. I don't have the time or money to drive all over town to do that even if I felt like doing it.
     
  2. rain man

    rain man LawnSite Silver Member
    Posts: 2,794

    I would consider contacting my state representative. They may or may not realize that 80% of this "industry" does not report income. It is not right to tax without equal enforcement and to do so is destructive.
     
  3. Two Seasons

    Two Seasons LawnSite Senior Member
    Posts: 791

    The problem is that those whose "represent" us won't stop spending OUR hard earned money for their pet projects...as we watch our infrastructure crumble around us.

    Even our president lied to us...$250K or less = no new taxes! A bunch of liars and cowards! All those entitlement programs cost a lot of money.

    People who are capable and won't work shouldn't eat or be sheltered by the taxpaying public. Where is the means testing for all these handouts?

    Have you checked the licensing and fees that your state is charging lately? Here in WI ours almost doubled for every thing the last couple of years.
     
  4. Roger

    Roger LawnSite Fanatic
    Posts: 5,917

    Why is there a reason for you to absorb the 8% sales tax? Undoubtedly the NC residents are paying that tax on many other goods, and/or services. The notion of them paying another 8% on top of the amount should not be foreign to them.

    If they have a complaint, their effort should be directed toward those who enacted the tax, not the service provider.

    We have had a 6% (7% next county) sales tax for a long time. It is just added to the bottom line, and people pay it, knowing that we are required to remit a tax on sales. If I don't add it on the bottom, then I'm taking it out of my sales revenue.

    PA has the 6% (or 7% in a couple of counties) on many services. Some property services are not included in the list. A current proposal on the table for consideration is to lower the tax (4%?), but apply it to nearly every service (and more goods as well, ones now exempted). The obvious intent is to generate more revenue.
     
  5. mhaley927

    mhaley927 LawnSite Member
    Posts: 129

    This is true, but what sounds easier to you... changing state law or switching lawn services?

    Richard, you might have to jsut take this one on the chin to avoid losing any.... You MIGHT be ok because for a lot of people (especially if theyre paying premium prices already) 6% isnt huge.

    My only potential suggestion would be to 1) explain the situation and 2) offer to split the tax with them so your hourly only drops 3%.

    Or I guess you could mow faster :p
     
  6. brodo374

    brodo374 LawnSite Member
    Posts: 141

    Not sure 39 bucks an hour with a 8% tax would be worth it.
     
  7. CincyWolf

    CincyWolf LawnSite Member
    Posts: 78

    With the current administrations raping of the country and unfunded mandates on the states there is a problem. The states are bound to balance the budget and when the Feds require something new then something has to give. Just a reality of spend and tax politics.
     
  8. CincyWolf

    CincyWolf LawnSite Member
    Posts: 78

    Might also be time for NC to get rid of that Democrat living in the Gov Mansion. She seems to be almost as bad as that crook she replaced.
     
  9. fastcat

    fastcat LawnSite Senior Member
    Posts: 799

    i know where your coming from. its hard enough now to get the normal decent $ out of a yard that little 8% could make some people leave and you know where they will go joe no tax paying blow. i have mentioned it to a couple of my customers and they dont mind paying the extra but i dont want the extra paper work.
     
  10. Roger

    Roger LawnSite Fanatic
    Posts: 5,917

    What is the extra paperwork?

    Any financial management software should include "taxable" or "nontaxable" for a task of work. The amounts are rolled up for you.

    Also, I'm doubting that any remittance would be by paper. Aren't they doing all the remittances and monetary exchanges electronically?

    I am doubting that any paper is involved. Right? Or, not right?
     

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