Sales tax on the customer

Discussion in 'Lawn Mowing' started by The mayor, Jun 16, 2005.

  1. The mayor

    The mayor LawnSite Senior Member
    Posts: 592

    I have been having a problem with some of my new customers this year complaining about being taxed. I am thinking about bidding out higher prices and not showing tax. I guess they feel like they souldn't have to pay sales tax. Anybody else have this problem. It's not like I am pocketing it.
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Well my business is a 'service' company and thus NOT allowed to do retail sales. This makes it easier because all I charge the customer for is Labor and I don't gotta worry about MORE tax-related paperwork. Far as the sales tax, I pay that when I get the supplies, and I charge the customer what I paid. Of course there has to be a little money in it, so I charge a small 'delivery' fee but simply include it in the price. 20 minutes labor for 'delivery' is usually good, if you pick up supplies for 1 customer then you lose out a bit, 2 customers at a time you break even, 3 and you make a profit.

    This also gives me the incentive to combine trips because it saves gas, time, and money.

    That's how I do it.
     
  3. LawnScapers of Dayton

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

    I have not had the problem....but explain to them that by running a legitimate business and being licensed by the state you are required to collect (not charge) sales tax. It is a matter of educating them..... If they have had the neighbor kid mowing before then they have no idea what a true business has to do to be legit.

    Derek
     
  4. wacamaster

    wacamaster LawnSite Member
    from MI
    Posts: 198

    You shouldn't charge taxes on your services. If you bid someone at $40.. $40 is the price. It's probably against the law to tax on a service.
     
  5. gogetter

    gogetter Banned
    Posts: 3,256

    I was always under the impression that the tax had to be itemized separately on the invoice, so that's what I do.
    If the customer doesn't like it, boo friggin' hoo. Let them find a lawn boy!
     
  6. The mayor

    The mayor LawnSite Senior Member
    Posts: 592

    Lawnservice is taxable in the state of wisconsin.
     
  7. TJLANDS

    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    Sales Tax on lawn service in NJ but not Landscaping,...... pain in the butt
     
  8. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    The only people that have a problem with tax is older people (from what i've seen). So what i always do is I figure in the tax and charge that price. Say I price it at 25, its 26.75 with tax, i'll either go with that or bump it up to 27. Then they don't see it.

    I always tell them that I just collect it for my uncle sam, I don't charge you for it.
     
  9. SCW

    SCW LawnSite Member
    Posts: 29

    To the person that said you don't charge tax on service...every state is different. Check your state tax laws. In TX, if we're not a solo op under a certain gross, then we have to charge sales tax on everything we do. When we've had people question us about it, or complain, we give them a sheet from the state that talks about sales tax being required for lawn & landscaping services. I simply went to our state's website, went to that section in the tax law, and printed it out. Yea---it's a pain---but it's not our fault, and like you said, we're not pocketing the money. They want to complain? Tell 'em to gripe to the lawmakers.
     
  10. The mayor

    The mayor LawnSite Senior Member
    Posts: 592

    I will just ad it in. I never had this issue before. It is mainly older people, and a school teacher. go figure.
     

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