Sales tax in Ohio.......question???

Discussion in 'Business Operations' started by LawnScapers of Dayton, Dec 10, 2003.

  1. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    According to my accountant as of Jan 1, 2004, I am supposed to charge sales tax on all services provided.

    What is the best way to handle this???

    If I have a lawn that I get $30.00 for, and I raise rates since I haven't for 3 years to $35.00 and now I have to charge sales tax (7%) which will bring the price to $37.45.

    That is a pretty steep increase.....

    I am thinking about just stating in my beginning of the year letter that I will have to charge sales tax this year and leave it at that until the first round on bills go out.

    Derek
     
  2. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    According to my accountant you should have Already been charging sales tax. I've had to charge sales tax for yrs. I just have it in my contract where it says XXXXXXX of $$$ plus tax. never had problems with it except once.

    Mac
     
  3. lrose2

    lrose2 LawnSite Member
    Posts: 165

    :blob2:
    If you have the necessary service vendors license from the state of Ohio you should have been charging and paying sales tax all along. Also, the sales tax rate for Montgomery County (Dayton, OH) is 7.5% not 7%. If you don't charge the right amount and collect same guess who has to pay the difference at payment time? RIGHT! Good guess. Don't worry. Ohio will send you frequent sales tax brochures with updated sales tax rates for each county in Ohio.
     
  4. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900




    and send and send and send and send



    :laugh: :laugh: :laugh: :laugh:


    I think some one needs a new accountant
     
  5. turfsurfer

    turfsurfer LawnSite Senior Member
    Posts: 364

    Your Ohio sales tax account should have automatically been setup and the forms mailed to you when you applied for your Service Vendors License, which makes you a legal and legit operation.
     
  6. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    Wow, am I glad I live in a state where services are not taxible. That whole sales tax thing seems like a pain in the butt.

    Although, with my state being so broke, I am sure it's only a matter of time before I'll have to be doing just that.

    :D
     
  7. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    OK.....so here is the deal....my new accountant was correct in that per my service venders license I offically will start collecting Ohio sales tax on Jan 1.

    As well I am a victim of #1 bad business advice and #2 not personally double checking information received.

    Things are good now LLC's are done, SVL is done, GL policy is done and I have a new accountant that isn't an elderly family member that use to work for an accountant....

    I have yet to receive the service vendors license/tax info since I did that at the local state office rather than through the mail.

    I also bought Quickbooks and have that set up.......Boy the road to legitimacy is a long one....but kinda fun....

    Thanks for all your advice.....Lawnsite (members) sure is an asset to me...

    Derek
     
  8. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Posts: 4,369

    Most vendors ask for a vendors licence in OHIO before they give you trade prices and or tax exemption. How have u been dealing wih this.
     
  9. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    Never been asked...

    Also just got my bill for my GL policy....Only $560 /yr... that is half of what I expected....and it also covers my rental properties...

    I do need to double check the way it handles stolen or destroyed equipment.....


    Derek
     
  10. lrose2

    lrose2 LawnSite Member
    Posts: 165

    OK, Derek. It sounds like you are getting there. If I can be of any assistance to you give me a call. I'm in Bellbrook. Be glad to help!
     

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