Sales Tax

Discussion in 'Business Operations' started by Greenbrier, Jan 7, 2006.

  1. Greenbrier

    Greenbrier LawnSite Member
    Posts: 30

    Do any of you quote a price, then add sales tax? Or do you just quote a price and worry about the sales tax at the end of the year? Do you do , say, $35 an acre plus sales tax, or just the $35 -$40 acre. The question is, how do you handle sales tax? Not how much you charge per acre. I am thinking about having a standard rate per acre, then tacking on a sales tax of %15 (Fed and State, city) but that might put me over on competition. What do you folks do??

    Thanks,

    Coop
     
  2. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Posts: 1,734

    In my county in Ohio we are suppose to charge 6.5% sale tax so thats what I add onto the invoice when the work is complete. No complaints yet besides them saying that Governor Tax wants are money. Welcome to the tax State!
     
  3. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

    you have to list tax seperate on the invoice. min is also 6.5% so on a $100 bill it would be $100 plus tax =$106.50. if your comperators are legit then they have to charge tax toand BTW there is no fed sales tax thats done by state and county. customer is responsible for paying sales tax it does not come out of you profits
     
  4. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Posts: 1,170

    It's easy here in NC... we don't have to put tax on labor!
     
  5. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    On mowing I usually don't quote somebody $35 + tax. I just tell them $35, when getting statements ready the tax is figured in (.07 x 35 ) total bill $37.45.

    When giving estimates on full maintenance, fert & squirt program, landscape or hardscape I then provide estimate with tax included. Don't know why I started doing this, I guess because usually when giving an estimate for mowing I pretty much shoot them a figure then and there, larger job bids sometimes (not all) require a bit more time.
     
  6. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    Greenbriar ... I don't know what you mean by "worry about the sales tax at the end of the year." In reality, you are not charging sales tax, you are the collector of the tax for the state. From your comment about the end of the year, do you mean you will add a single lump amount to the last invoice, the amount being the tax for the entire year? This is not permitted as I understand the codes. The tax must be collected for payments. If you are a legit business and comply with regulations, then you must have all the information regarding collecting the tax, and how/when you are required to pass along the money.

    I have had debates from my taxing agency regarding paying them tax on work done vs. paying them tax on money collected. They are not consistent with their own story on this point. Our work, with monthly invoices, isn't quite as simple as retail sales when the business owner collects the tax at the time of sale.

    I never quote the tax directly, but provide a quotation, with a "plus tax" clause. And, yes, some have objected in adding the tax with a payment, because "I don't think they should charge tax for this kind of work," or statements to that effect. This issue is not what they, or I, think about the matter, rather what is required of the business owner.
     
  7. RonB

    RonB LawnSite Senior Member
    Posts: 429

    Sales tax end of year?

    I have to send in the last month collections in by the 20th of the following month - what I collected in Dec. is due Jan 20th.

    If you don't collect it, you will need to take it out of that $30 (whatever) for the cut. On your paperwork you'd show a billing of $28.04 and sales tax of $1.96 is sent in. 7% here.
     
  8. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420


    Ours are due on a quarterly basis
     
  9. sheshovel

    sheshovel LawnSite Fanatic
    Posts: 5,112

    I only charge tax on materials that I have to pay the tax on
     
  10. Reliable Lawns

    Reliable Lawns LawnSite Member
    Posts: 95

    I only have to collect sales tax on pesticides like grub control, all others like mowing, there is no tax on that labor/service.
     

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