Tax Exempt?

Discussion in 'Turf Renovation' started by kbacon3231, Feb 20, 2006.

  1. NickN

    NickN LawnSite Bronze Member
    from Alabama
    Posts: 1,010

    Just apply for your reseller number.It's a pain at first,but when you're buying plants at 1/2 price,marking them up and then charging an install fee,you'll see why you need it.Those $$$'s add up pretty fast.In Alabama,if you get your money in on time,at the end of the month,you're allowed to keep a portion of it,so you do indeed make money on the taxes collected.
     
  2. yrdandgardenhandyman

    yrdandgardenhandyman LawnSite Senior Member
    from midwest
    Posts: 953


    Here, if you pay on time, they don't charge you 5% penalty. :) That's the best break they got.

    Every state is a little different. Check with your state's dept of revenue.
     
  3. old dog 80

    old dog 80 LawnSite Member
    Posts: 204

    In Penn you have to get a sales tax license.Contact your local Pa.
    Dept. of Revenue and ask for sales tax specialist
     
  4. crzymow

    crzymow LawnSite Senior Member
    from Pa
    Posts: 378

    Well at least in PA you still have to charge sales tax on the labor of installing the mulch. so im goin to have paperwork anyhow. So if i can save paying sales tax on 100 yds of mulch at $13 a yd that saves me $78. Then when i turn around and sell it to my customers i charge them the sales tax so its not coming out of my pocket then either.
     
  5. old dog 80

    old dog 80 LawnSite Member
    Posts: 204

    Just remember every state is different.What is law in Virginia may not be
    here in Pennsylvania.And the lawmakers are in office to make it rougher
    on everyone every year!
     
  6. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Just ask for contractors price.
    You should be shopping at the big whls. yards and not the TSC or the chain stores.
    Also when you claim tax exemt for materials you better be collecting and sending in your state sales tax each month
     
  7. kbacon3231

    kbacon3231 LawnSite Member
    from ohio
    Posts: 37

    olderthandirt I do have a Service vendor's liscense so i will be taxing cutomers and paying taxes. TSC was just an example of a place that asks every time your in there if you tax exempt. I mainly wondering about the mulch. Thats about the only materials i buy that i resell. Last year i was buying mulch from 25 to 30 dollars a yard locally. It is pretty hard to mark up the price, installation fee and delivery and still make a decent profit.I was only able to charge around $55 a yard installed without customer looking at me like im a lunatic. Surelly this year i should be able to have a higher profit margin. Thanks for all the great info it has helped alot
     
  8. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    what part of Ohio are you in? you can Pm if you want. mulch $12 a yd for double ground delieverd in walking floors 80-100 yds at a time. Or $10 a yd picked up any amount. and if your north or near any major city you should be getting $70 yd to deleiver and spread it.

    BTW--
    This was said to let you know thats one of the easiest way to get audited 10k in tax exempt purchases and onlt 20k in sales and you will be throwing up red flags
     
  9. crzymow

    crzymow LawnSite Senior Member
    from Pa
    Posts: 378

    where in ohio are u mac? Im near erie pa, curious as to where u get your mulch.
     

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