Ohio's 7.5% Sales Tax on Mowing.

Discussion in 'Lawn Mowing' started by afftandem, Jan 7, 2005.

  1. afftandem

    afftandem LawnSite Member
    Posts: 196

    theres a 7.5% sales tax on services in ohio, including lawn mowing.
    how are you guys with states that have a sales tax charging?? for example a $25 lawn.

    1. do the job for $25 then just pay it myself? (big chunk outta profits)

    2. say i'll do it for $25 then add the tax when i collect. If they complain, just tell them to call their congressman, and explain that everything is taxed.

    3. just advertise $27 and pay it myself (yet $25 is so much better sounding and would pull in many more lawns)
     
  2. naturescaretaker

    naturescaretaker LawnSite Senior Member
    Posts: 851

    We don't tax services here but we do tax materials. I add it to whatever the job was. The contract says tax is additional based on materials.
     
  3. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,414

    The people know even if you do not. So tell them what they expect to hear 25 dollars plus tax. We got 6% here and there is no way in hell that I would eat that start paying 4-6k a quarter in sales tax and you will know what I mean.
     
  4. yrdandgardenhandyman

    yrdandgardenhandyman LawnSite Senior Member
    from midwest
    Posts: 953

    In Iowa it's illegal to not bill sales tax. In other words, you HAVE to have it as a seperate charge. It's a good idea to take some business and tax courses at your local community college.
     
  5. Popsicle

    Popsicle LawnSite Member
    Posts: 189

    Washington state requries businesses to "collect" sales tax for all services and materials. I work in two counties which are 8.6% and 8.8%. You'd be crazy to absorb the tax.

    Show the tax on your proposals and make sure you point out to the client that you will be collecting the sales tax on services renedered.
     
  6. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983

    In INDIANA it is 6% on a job with MATERIALS, BUT THE LABOR is included as a "UNITARY" part of the project. (Huh???)

    IF you do a job with materials (mulching for example), you have to charge tax for the mulch, BUT you also have to charge tax for the labor to put it down (if you put it down).

    IF there is no material (mowing for example), then you don't have to charge any tax on the labor.

    That being said, I'd guess 25% or less of LCO's in Indiana ACTUALLY charge (and Pay) the tax. Many choose to ignore/non-comply, especially the smaller operations. Too much paperwork ($25 intial cost to set up account & monthly filings & payments) involved & apparently little to NO enforcement!

    Mike
     
  7. Lawrence Lawns

    Lawrence Lawns LawnSite Member
    from zone 7
    Posts: 23

    PA has a 6% sales tax on all lawn services except lawn installation. We generally tell customers what the charge is + tax. The invoice must show the tax charge and then the tax is paid in to the state quarterly. You might want to talk to your tax consultant or call the state for the correct way to collect in your area.
     
  8. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Thank god Oregon does not have sales tax. What a big pain in the arrs. To try to keep track of every thing else on top of the chunk that the state gets through sales tax. No way not for me.
     
  9. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    to the man starting the thread it is not a state tax it is just your county in OHio my county Stark is 6.5 and i figure it into the mowing rounding up as always. On big jobs i estimate saying plus tax.
     
  10. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    how do you find out if your state requires you to collect sales tax? i live in kentucky just in case someone already knows... thanks. :)
     

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