Start charging sales tax in Wash. State?

Discussion in 'Business Operations' started by siclmn, Jun 10, 2005.

  1. siclmn

    siclmn LawnSite Senior Member
    Posts: 364

    I just got a new accountant and he wants me to start charging sales tax for my lawn mowing. I have not charged tax for 20 years, why should I start now? This will make all my $35 lawns cost $38 and I am always competing with those guys who still just charge $26 to $27 with no tax.
     
  2. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Ummm.....

    you might want to check out this link...

    http://dor.wa.gov/docs/pubs/excisetax/wataxfacts/taxfacts_mq_01_m06.pdf

    It's your sales tax fact sheet for WA state, and it lists that you're supposed to be charging sales tax.

    I had this happen to me about 4 years after I was in business, when I was doing about $1000 / month when I was 20. The MN Department of Revenue sent me a letter stating I was behind in my sales tax payments and they wanted me to cease all operations.

    I ended up owing just over $3,500, since I didn't know I was supposed to be charging sales tax, they were a little more lax on the penalties.

    Anyways, if you've not been charging since, it looks to me since 2001, you'd better start saving up, or at least start paying in now and hope they don't send you a letter saying where's the last 3-4 years of payments plus penalties and interest.
     
  3. ndunn

    ndunn LawnSite Member
    Posts: 47

    20 years and no audit while not paying sales tax is pretty damn lucky.
     
  4. Yard Perfect

    Yard Perfect LawnSite Member
    Posts: 133

    Charge tax - it is the law. Besides I get to use their dollars for three months prior to my quarterly payment. Nice fringe benefit.
     
  5. JFGLN

    JFGLN LawnSite Senior Member
    Posts: 961

    They changed the law about 10 years ago.
     
  6. JRAZ

    JRAZ LawnSite Member
    from NW
    Posts: 143

  7. DKinWA

    DKinWA LawnSite Member
    Posts: 76

    Wow! You might want to do some reading at the Dept. of Revenue website. I'm assuming you aren't paying your B&O tax either? The way I understand it, you aren't obligated to charge sales tax, but you are obligated to pay it.
     

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