tax question

Discussion in 'Business Operations' started by touhey33, Feb 17, 2006.

  1. touhey33

    touhey33 LawnSite Senior Member
    Posts: 772

    Do you include the tax on an expense item? For example I rent a power rake for 35.00 total w/ tax is 39.20. Which amount do I use.
  2. work_it

    work_it LawnSite Senior Member
    Posts: 976

    Yes, include the taxes and list them seperately. Here in Kentucky you have to include taxes on expense items, landscape materials, and any delivery charges. If you just go ahead and list it as $39.20 or $40 on an invoice; then you will be taxed on the listed amount instead of the base price ($35 in this example).
  3. maintenanceguy

    maintenanceguy LawnSite Member
    from NJ
    Posts: 156

    This varies by state laws.

    In some states, you must eat the tax and bill the consumer for only the non-tax part. In some you don't pay sales tax, the consumer does. And there are probably other rules too.

    Call your state revenue dept and they probably have a nice shiny brochure to send you.

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