Tax Question regarding Mulch....

Discussion in 'Business Operations' started by Lawn Sharks, Jul 2, 2005.

  1. Lawn Sharks

    Lawn Sharks LawnSite Senior Member
    Posts: 394

    I am now living in South Carolina where the tax rate is 6%. I am just getting started here after having a business in Vermont.

    If I understand correctly SC does not require me to charge customers tax on labor but does on materials.

    I want to charge the appropriate tax on mulch jobs but don't know exactly how to go about it.

    I install mulch at $50 yard installed.

    How do I charge the tax on the materials without charging the tax on labor without revealing what I consider to be material cost to labor percent.

    Sorry if this doesn't make sense. I just woke up from a nap.
  2. lqmustang

    lqmustang LawnSite Senior Member
    Posts: 620

    In your case I would pay the sales tax up front at your supplier. Keep good records, and you can show that tax has already been paid for the materials if Uncle Sam wants to check you out. Of course if this changes your end price for the mulch, adjust your pricing accordingly.
  3. BigChaz

    BigChaz LawnSite Member
    Posts: 69

    If your doing 50 installed, arent you already eating the tax in the total?

    Or are you just hoping to get a few extra bucks and take back the tax money you already charged?

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