Sales Tax

Discussion in 'Lawn Mowing' started by ChrisYanik, Feb 6, 2001.

  1. ChrisYanik

    ChrisYanik LawnSite Member
    from OHIO
    Posts: 50

    Just wondering how many of you collect sales tax from lawn care service.

    Do you add the tax to the total price of the weekly mowing or do you collect it seperatly.

    Seems to me it should be collected seperatly.

    The reason I'm asking is because I've been operating under the table for the past three years and decided its better to work legally from now on. Just thought some people may get upset if I begin to charge Sales tax.

    Ya I know...It's a dumb question, I was just wondering If any of you have had a similar situation?
     
  2. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    if its 20 bucks
    we add $1.60
    and collect $21.60

    Kris
     
  3. VLM

    VLM LawnSite Member
    Posts: 189

    In VA there is no sales tax on services (only on actual goods sold) so its not a problem for me. Are you sure there is a sales tax on services in your state?
     
  4. TJLC

    TJLC LawnSite Bronze Member
    Posts: 1,308

    It may vary from state to state, but I have never heard of anyone charging tax on services.
     
  5. ChrisYanik

    ChrisYanik LawnSite Member
    from OHIO
    Posts: 50

    Here in OHIO, there is a sales tax since I'm selling a service to people. Collecting sales tax on good sold is requires a standard venders license. Collecting sales tax on service's sold is also required here in OHIO and requires a service venders license.

    If anyone else is from Ohio please correct me if I'm wrong. I'm fairly sure that this is the law set forth in Ohio though.
     
  6. Pauls Mowing

    Pauls Mowing LawnSite Member
    Posts: 207

    I have to collect 4% state and the city tax from my customers. SD has always taxed services.

    Paul
     
  7. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    In New York when we buy products we are considered "tax exempt" if we will be charging the customers for those products.

    If I buy mulches, fertilizers, etc. I dont pay the wholesaler tax on the product because the customer pays for the tax as part of the service.

    If I am buying equipment, landscape fabrics, stakes for guying trees in a landscape installation then I pay the sales tax at the time of purchase because I dont bill these materials to our clients they are a cost associated with doing business.

    Hope I havent corn-fused anyone.
    Kris

     
  8. ChrisYanik

    ChrisYanik LawnSite Member
    from OHIO
    Posts: 50

    Paul Stated The Following

    Paul's Mowing I have to collect 4% state and the city tax from my customers. SD has always taxed services.

    Paul



    4% ON ALL SERVICES AND PRODUCTS SOLD!!!!!! ARE YOU SURE THAT'S RIGHT.

    Here in Toledo Ohio the sales tax is 6.25%. And the cost of living is considered to by LOW in this town which means mowing prices are low and fertilization prices are around $25.00 for 4000 sq. ft.
     
  9. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    6% sales tax on services rendered here in PA.

    If it's a $40.00 cut, with tax it is $42.40. We send in our sales tax quarterly.


    We have had a few people in the past balk at the idea of paying the sales tax. (Their neighboorhood boy wouldn't charge them of course). Well I brought sales tax up before here on lawnsite, and someone suggested when telling your customers that there is sales tax added to bill, tell them
    you do not charge sales tax, but instead you COLLECT it for the State of PA. Good idea there, and we now say that.


    [Edited by 1MajorTom on 02-06-2001 at 05:18 PM]
     
  10. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    Its all in the how you present it.

    Thanks Jodi.
    Kris
     

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