Sales Tax??

Discussion in 'Business Operations' started by 24ON48OFF, Mar 6, 2005.

  1. 24ON48OFF

    24ON48OFF LawnSite Member
    Posts: 52

    How do you do the sales tax. Do you say $25 plus tax or take it out of the $25. Or another option quote a price of $27. Does $27 sound funny to the customer?
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    are you talking about service taxes or item taxes?
  3. Toy2

    Toy2 LawnSite Bronze Member
    Posts: 1,924

    I think I read somewhere that i have to hit $5000.00 first in sales and then required to charge tax, I might be wrong..
  4. eruuska

    eruuska LawnSite Senior Member
    Posts: 454

    You would do well to check with the state dept. of revenue. Don't go by something you think you read somewhere. You can cause a lot of trouble for yourself if you don't get the facts.

    I don't know how it is in Texas, but in Indiana services are not taxable, just merchandise. If services are taxable, people expect there to be sales tacked on, so you don't need to say "plus tax". Just add it to the bill and you won't have any problems. Also be sure to forward it to the proper agency. payup Could come back to bite you if you don't.

    Hope this helps.
  5. 24ON48OFF

    24ON48OFF LawnSite Member
    Posts: 52

    IT would benefit you to charge the tax from the beginning. When you hit $5001 then you owe tax on all the money you made from the first $ :dizzy:
  6. Toy2

    Toy2 LawnSite Bronze Member
    Posts: 1,924

    Ok, quote " if I exceed $5000.00 during the most recent four quarters then I can begin to collect taxes on the first quarter after the threshold is exceeded"??
  7. 24ON48OFF

    24ON48OFF LawnSite Member
    Posts: 52

    wont you still be $5000 behind at the beginning of the next quarter?
  8. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    It should read, "If you are going to make over $5,000 over the next four quarters you need to be collecting sales tax." Thats the law in Texas. You don't have to take my word for it, but you can check the state website and it will say the same thing. And yes, you should be collecting sales tax on that first $5,000 as well.
  9. Toy2

    Toy2 LawnSite Bronze Member
    Posts: 1,924

    Thanks for the update. :)

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