Sales tax on lawn care??

Discussion in 'Lawn Mowing' started by 25nbl, Oct 19, 2004.

  1. 25nbl

    25nbl LawnSite Member
    Posts: 39

    One of my new customers from last month, I quoted her $50 per cut. Well, I billed her for four cuts at $215 which includes our 7.50% sales tax. I have never had a customer complain because of sales tax before until now. She says that I shouldn't be charging sales tax on a service, which in Texas as far as I know, you do have to charge sales tax on lawn service even though it is a service. I told her that I would go ahead and take care of the sales tax out of my pocket, but I also told her that the sales tax goes to the city, not in my pocket. I wish I didn't have to charge it, but the law is the law. Anyone else in Texas ever run in to this problem or anyone not pay sales tax for some reason and never had a problem?? Any other states have to pay sales tax on lawn service?
     
  2. Kelly's Landscaping

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

    I have had 2 that refused to pay but we are talking 1 time jobs and that was it. If this is a lawn account you can not go on eating this cost she needs to pay or she needs to go.
     
  3. dkeisala

    dkeisala LawnSite Senior Member
    Posts: 911

    I just today sent Washington state a check for $1645.50 for sales tax that I have collected, on their behalf, over the last fiscal quarter. If you live in a sales tax state, many (if not most) services are subject to retail sales tax.

    If you have a lot of people that balk about it (and many do) simply build it into the price then they never see it.
     
  4. oneandonlyjojo

    oneandonlyjojo LawnSite Member
    from NY
    Posts: 125

    explain to them taht it is the law and that most likely there l;ast landscaper was not licensed or insured thats whythey where not charged it. tell her if one of them broke anything or hurt anyone on there prop they would have been ****** so that 7.5% u charge for the state shows u are legit and safe
     
  5. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,073

    You're not charging sales tax, you are collecting it for the state of Texas. That's how we explain sales tax to our customers, it's 6% here.
     
  6. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    We don't have sales tax on lawn care in MI, yet. Granholm wants to change that soon, though. If we do have to start collecting tax, it's coming outta the customer's end, not mine, and I'm not going to eat that just to keep a customer.
     
  7. Frank2

    Frank2 LawnSite Member
    Posts: 102

    Exactly!!!
     
  8. beransfixitinc

    beransfixitinc LawnSite Senior Member
    Posts: 592

    Actually, that is illegal (in TX at least). If you are doing that, and get audited by the state, you better be ready to cough up what they figure your sales tax owed to be. The sales tax must be plainly stated as a seperate line item on the invoice, or your invoice must include the words "Sales Tax Included".
     
  9. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    You should not have agreed to "eat" the sales tax. It shows that it must not be fully legitimized if you just say,"OK, I'll take care of that for you..". A law is a law, and if they can't understand and respect that, drop them now before it gets worse. As Jodi said, we collect the tax for our respective states, not charge a tax for the state..big difference. Regardless, you are ultimately responsible for making that payment to the state, so pony up...
     
  10. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Here in MN, you have to pay sales tax on lawn care, but not snowplowing, or firewood sales. Go figure.
     

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