PA sales tax info

Discussion in 'Business Operations' started by tjcezar, Apr 3, 2004.

  1. tjcezar

    tjcezar LawnSite Member
    from PA
    Posts: 237

    What are you guys from PA charging sales tax on. I read the booklet the tax office gave me and I am really confused. Ex. when I do a mulch job do I tax the whole job or just the mulch. How about tree removals and clean-ups? I read in a previous post they would would just tax everything, but I dont want to do that. I want to do what I'm supposed to do, that way when I go up against someone for a job I don't have them telling the customer I'm collecting tax on something that isn't taxed. Then I would look like a thief. Any help would be appreciated. ;)
     
  2. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Honestly I still have to look things up because I can't always keep it straight what gets taxed and what doesn't.
    Check out this article here.
    Scroll down to the bottom.
    There you will find Taxable Lawn Services and Non Taxable Lawn Services. I actually printed out the bottom part and cut it out so I could keep it in a handy place.
    Hope it helps.

    http://www.lawnandlandscape.com/news/news.asp?ID=583&AdKeyword=+PA+sales+tax
     
  3. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    The PA tax law is a nightmare to understand ...there has been an effort to simplify the code as it pertains to landscape work but its bot come to bear yet....heres what I do and my accountant says I'm on the money.

    Taxable...all of it:
    Mowing, mulch install, pruning, plant installs...nearly everything we do in the lanscape should be taxed

    Exceptions...not to be taxed:
    Tree pruning/removal as a result of storm damage
    New lawn install
    SNow removal

    If you follow this guideline you'll be fair to your customers and legit with the state.

    Kudos to you for even asking the ? as allot of the yahoos in this biz dont collect ANY sales tax
     
  4. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Amen to that! We hear that all the time. "sales tax? our last guy never charged sales tax."
     
  5. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    Only about 20% of landscape companies charge it here also. I get same response from new clients.
     
  6. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    the sales tax subject really sends my blood pressure off the scale....

    frickin low life, ignorant, mouth breathing, goobers.....

    there....I feel better...

    remind me not to read anymore sales tax threads or I might have a stroke the next time....
     
  7. tjcezar

    tjcezar LawnSite Member
    from PA
    Posts: 237

    I've been charging tax on mulch stated seperately from installation(no tax) on my invoices. That was what I took from reading the pamphlet from the tax office. Also all mowing customers will be charged tAx. I figure If I want to grow to a decent size company I am goin legit from the get go. Even though some customers might be Like "the last guy didnt charge me tax" that is where I will let them know they have a REAL, LEGITAMATE, and PROFESSIONAL company who is reliable and does things the right way, not cutting corners and that should seal the deal.
     
  8. mmacsek

    mmacsek LawnSite Senior Member
    Posts: 543

    The tax rules are really vague. I understood it as taxable: lawn maint., applications, lawn seeding(repair only) and pruning if it was done the same time as lawn maint. Calling the state dept. was very little help. They sent one page on what is taxable. If I'm wrong please set me straight. Thanks Matt
     
  9. gogetter

    gogetter Banned
    Posts: 3,256

    LOL! Oh good, I'm not the only one!:D I also printed that page out and refer back to it once in a while.
     
  10. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Actually gogetter, I think a long time ago you might have posted that link for me on a question I had about sales tax. I've since saved it, and used it when necessary. Thanks.
     

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