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Sales tax exemptino for Lawncare and Landscaping in Ohio

Discussion in 'Lawn Mowing' started by brentsawyer, Jan 21, 2002.

  1. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    I was looking for what sales tax to charge for a landscaping job in Ohio and I came upon the following link. In it it has a exemptions and exceptions part that list areas where sales tax isn't collected and what do I find. You got it. Lawncare and landscaping listed in #2. Since I don't live in Ohio, I don't know if I am reading something wrong here, but please take a look and direct me in the right direction. http://www.state.oh.us/tax/Publications/2000_Annual_Report/27-sales.pdf
    I am also unsure since I live in Kentucky what the requirements are.
  2. ohiolawnguy

    ohiolawnguy LawnSite Senior Member
    Posts: 391

    th link isnt working for me, so i didnt see that. in the early 90's 1993 i believe the state began to require that LCO's charge ohio sales tax for all services. ohio sales tax is 5.75%, and I think that everyone with the exception of churches and non-profit organizations, are supposed to be charged sales tax.
  3. ohiolawnguy, It's a pdf document. You need Acrobat Reader to open it.

    brentsawyer, I think you read it wrong. [​IMG]

    #2 is a list of taxable services.

    The language is confusing.

    You gotta pay the man. [​IMG]
  4. KDJ

    KDJ LawnSite Senior Member
    Posts: 325

    Down here in Florida the Lawn Care industry is not required to charge State sales tax even if there is product involved.

    Laws change from state to state.
  5. plow kid

    plow kid Banned
    Posts: 516

    I have always collected tax on MATERIALS not labor, and ohiolawnguy, Ohio Tax is 6.25%
  6. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    Ohio is pretty weird. It looks like Ohio as a state charges 5%. The additional is up to individual manucipalities. Therefore, one county could have a different rate than another.
  7. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    That is very common. Each city has it's own government and their own expenses so yes sales tax will change from city to city within one state.

    Here are all the rates in Texas.... Click Here
  8. LAWNMAN017

    LAWNMAN017 LawnSite Member
    Posts: 3

    Ohio makes you pay sales tax on your materials and your labor and the sales tax is different in each county like mahoning county is 6% unless your snowplowing you charge tax for salting but not plowing ! ohio is a messed up state
  9. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Here is KS that is no tax for mowing, only for installs and that is for materials. If YOU pay tax at the time you pruchase materials, then you can just charge that cost into the job you are doing. This is called "streamline bookkeeping". By that I mean you don't have to fill out any extra forms and pay the IRS. Most in this industry perform a service and not retail sales. As stated above, all state governments are different.

  10. The Good Earth

    The Good Earth LawnSite Member
    Posts: 171

    This is how it breaks down for you:

    You are in Lexington, Ky. Most of your work will be in Hamilton, Warren, and maybe Brown counties. Anyway, whatever county you are working in find out what the sales tax rate is in that county. Most counties are different by a 1/4 or 1/2 percent.

    It's really not that hard, you just have to figure out what each county cost. For example Hamilton county could be 5.75% while Warren could be 6%. Adjust your invoies accordingly to reflect what county you are in for your customers.

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