Sales Tax

Discussion in 'Lawn Mowing' started by 1MajorTom, Jun 27, 2000.

  1. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,073

    Hiya,<p><br>I have a question concerning sales tax on grass cutting, hedge maintenance, etc...<p>Is everyone charging it?<p>Here in Pennsylvania, sales tax is 6%.<br>Our first year, we made a mistake when doing our bids. We did not include sales tax in the bids.<p>So say we bid a yard at $45.00 per cut.<br>Because we said $45.00 initially, I kept it that way. So $42.45 would be the price and $2.55 would go for sales tax.<p>This year we really wised up. A $45.00 yard is now $47.70. We tell each customer upfront that we charge sales tax.<p>But we find that some people balk at the idea. They say they want to pay us cash instead. We explain to them that we are a fully insured legitimate business and that we must charge the tax.<p>So my question to you guys/gals out there, are you all charging the sales tax? And if you do, then do your customers understand? Our accountant said that we had to charge the tax, no way around it. <p><br>Major Tom's wife
     
  2. mowerman90

    mowerman90 LawnSite Bronze Member
    Posts: 1,491

    Speaking as a former &quot;Pittsburgher&quot; (born and raised in PA)the soulutions a simple one: Move to Florida! There's no tax on labor, also no state income tax. The only thing I miss about PA is the Steelers.
     
  3. CA Enterprises

    CA Enterprises LawnSite Member
    Posts: 82

    Yes, I charge it!!!! When I do a bid I tell them it doesn't include the tax. And if it is a formal bid on a bid sheet at the bottom I add the statement &quot;Does not include Tax&quot;. I haven't had anyone question this yet. If they did they can pay or I walk. <p>There is another guy here who doesn't say anything about tax but adds it to his bid, it is included already.<p>Adam:)<br>
     
  4. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    In Indiana there is no tax on services, just on sales of products. We have to charge tax for fertilization, and for materials like shrubs, edging, flowers, sod, etc. The customer gets the labor without tax. <p>----------<br>Jim<br>North central Indiana
     
  5. yardsmith

    yardsmith LawnSite Senior Member
    from Ohio
    Posts: 627

    In Ohio I have to pay sales tax by the 23rd of every month.<br>Customer gets 6.25% added onto their bill for mowing. Only had 1-2 people ever say anything about it. Others accept it- it's not my law, it's the state! If I do landscape renovation, I add sales tax to labor only, not materials (that's in their cost already). A $25 lawn is billed for $26.56.<p>----------<br>Smitty ô¿ô<br>
     
  6. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Yes I charge the sales tax on both lawn care and fertilization. I still bid as you did with a round number as I padded my estimates to include this tax. I found it to be easier. It now gives me the opportunity to raise my rates by 5% if I want to by implimenting the tax. <br>I just started my fert business this season and all customers get an invoice that has tax itemized. On the other hand, I have a sellers permit and don't pay tax on any of my ferts or pesticides when I purchase them from the dealer. Good Luck.
     
  7. Scraper

    Scraper LawnSite Bronze Member
    Posts: 1,656

    From PA here too and of course I charge sales tax as required by law. If the customer has a problem with it I keep a copy of the tax regulations in my truck which shows what are taxable services and what are not. Haven't had a problem yet. Although I had some new accounts tell me that they weren't paying their &quot;old&quot; lawn service sales tax. My reply is...&quot;well I guess that your &quot;old&quot; lawn service probably wasn't insured either&quot;. Makes my biz look like a class act!
     
  8. Eric ELM

    Eric ELM Husband, Father, Friend, Angel
    Posts: 4,831

    I'm sure glad Illinois don't have tax on labor. Sounds like a hassle<p>----------<br>&lt;a href=&quot;http://pages.prodigy.net/eric.erickson/&quot;&gt;Eric@ELM&lt;/a&gt;<br>The Grass is always Greener on the other side of my competitors fence
     
  9. Greenkeepers

    Greenkeepers LawnSite Senior Member
    from NE Ohio
    Posts: 695

    Same as Smitty here! We have to charge it too!! Like others we made the mistake and included it in the price of a cut. This year it is on top. We charge tax on everything, mulch,shrubs,fertilizer etc....<p>Mike<br>Greenkeepers
     
  10. jcoat

    jcoat LawnSite Member
    Posts: 112

    If your state has one, goto the tax commission web-site and find if they offer classes on taxation. Oklahoma offers the workshops for free and the administrator offered his # and e-mail for business-related questions. It sure ironed out a lot of questions I had and the class was only two hours long.<br><p><font size="1">Edited by: jcoat
     

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