Tax on Mowing. Unbelievable...

Discussion in 'General Industry Discussions' started by tinman, Feb 15, 2010.

  1. tinman

    tinman LawnSite Bronze Member
    from ga
    Posts: 1,348

  2. DiyDave

    DiyDave LawnSite Bronze Member
    Posts: 1,695

    This one is going to go political. For the record, Maryland tried it a coupla years ago, failed miserably, as I recall, but these are different times, and Michigan is a different, and broker state. Maryland's motto is if you can dream it, we can tax it! Michigan's is, it seems, we tax dreams, too!:laugh::laugh::waving:
  3. meicher806

    meicher806 LawnSite Senior Member
    Posts: 385

    Wi has been taxing us for as long as i can remember on the lawn/landscape side, still no tax on plowing, we cant charge sales tax for salt, yet we incure the tax when we buy it.
  4. Ohio has sales tax on mowing service, and I like it. Because anyone who is going to deduct the expense of mowing has to have a service provider that collects and pays in sales tax. Otherwise they'll be flagged for an audit.
    It's better than a license to keep out the fly-by-night operators.

    It ain't like it's a tax on ME. I just collect it and pay it in to the state.

    Sure it's a big PITA to operate a business. (OK, pain for my wife) With all the taxes, insurances, license etc.

    More and more, the computer bases are linked. Workers Comp, IRS, Pesticide license, and insurance. And those figures had better match.
    Without taxes it's all kind of toothless, and lets a lot of guys fly under the radar. Not so when you involve the IRS. "They don't mess with the IRS".

    So if you're having problems with illegal labor, unlicensed competition and the like you can learn to appreciate a sales tax.
  5. Swampy

    Swampy LawnSite Bronze Member
    Posts: 1,435

    On the landscape side WI doesn't tax Decks, patios, Retaining/decortive walls, or fencing. So those are safe to. See Pub 210
  6. terrapro

    terrapro LawnSite Bronze Member
    Posts: 1,234

    Michigans Government is mentally ********. This is the third year in a row they have tried to tax lawn/landscaping but NOT! BS is what I say, getting your lawn mowed and buying a gumball(yes gumball machines will be taxed) is a luxury but golfing is not.

    They want to lower the sales tax to 5.5% and inact this stupid luxury service tax. I would not mind the sales tax being increased which will effect everyone across the board and buying new TV's and cell phones is a luxury it should be taxed...ALOT.
  7. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Posts: 774

    Here in PA some landscaping is taxed, some is not. Makes things confusing sometimes. Mostly if it is a service, like mowing, then its taxable. New installs that improve the property are not taxable. On the service end, mowing is taxable, but trimming of shrubs isn't. Both seem to be services to me! Like most states snow plowing isn't taxable. Our Governor wants to reduce the state tax from 6% to 4% and add 74 new items to the tax list, don't know if any of the 74 are related to our business. IMO, lower the rate to 3% or 2% and make everything taxable. Would make things easier for everybody. I have had customers complain when I charge tax because their previous LCO didn't. I tell them I can't explain why their previous LCO didn't charge, but it is a taxable service. I carry a copy of the state code with me just in case!
  8. Sammy

    Sammy LawnSite Bronze Member
    Posts: 1,734

    We will be glad when Granholm is gone.
  9. anotherturfgeek

    anotherturfgeek LawnSite Member
    Posts: 200

    This came up in NC. Alot of talk about it from the political movers and shakers.
    It died a few months back. RIP!!
  10. Merkava_4

    Merkava_4 LawnSite Bronze Member
    Posts: 1,280

    There should never be a tax on labor. :nono:

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