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Discussion in 'Lawn Mowing' started by Green Acres, Dec 6, 2000.

  1. Green Acres

    Green Acres LawnSite Senior Member
    Posts: 316

    I was wondering who added tax to the customers bill? For instance to you charge $30 or $30 plus tax? If you charge the tax how do you come up with the percentage? Thanks.
  2. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    Each state has its own tax laws which specify what services get taxed and at what percentage. You may have to have a certificate or license from your state to collect their taxes for them. Talk to your accountant. Hopefully Scraper doesn't see this one & tear ya a new one ;)
  3. Scraper

    Scraper LawnSite Bronze Member
    Posts: 1,656

    Don't get me started BRL :)

    I will refrain from responding to these posts til after the Holidays.

    Better yet...Green Acres...just pull a number out of that hat charge it and put the extra money in your pocket! No...just kidding. Listen to BRL and CALL YOUR ACCOUNTANT or STATE DEPARTMENT OF Taxation.

    P.S. BRL...Hunter Mountain has over 20 trails open!!! Let's figure something out!
  4. mike

    mike LawnSite Member
    Posts: 84

    Were I live tax is not added to labor work. Tax is added to material & supply. check with your CPA or advice from a lawyer friend.
  5. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Taxes laws can differ form state to state. In Texas you have to charge taxes for service as well as materials, etc. The percentage itself depends on the county that you live in. Sales and Use Tax (as it is called here) varies from county to county. Do a search on the web to find the comptroller's office for you state. The information that we found for our state is listed on the internet.
  6. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    In Wisconsin each county has its own tax rate and I am starting to put this tax on my new customers (.055%).

    I have a pretty heavy tax burden as this state is one of the worst around for taxes. I use Quicken Home and Business as I am a relatively small company and this program has taxing provisions built into the invoices. No one complained yet and its a good way to give yourself a raise while blaming it on the government.
  7. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    "its a good way to give yourself a raise while blaming it on the government."

    Are you saying that you are going to collect the state's tax & then not turn it over to them? Breaking those laws will probably land you in jail + fines, as opposed to not collecting them, and getting just fines when you get audited. Probably shouldn't post that at a public forum, the authorities love getting easy written evidence of fraud & tax evasion from perps.
  8. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Absolutely not! I pay all taxes collected. Let me clarify - if I have a customer that currently pays 30.00 per cut I will charge that customer 31.65 (1.65 or .055%)which is the states portion of the taxes. In essence I am making 1.65 because otherwise I have to subtract this amount from the 30.00. This works for the properties that can't justify a 5.00 per cut increase.
    Of course the Federal tax and fica is taken out by my accountant when I pay my income taxes.
    I have no secrets.
  9. TLS

    TLS LawnSite Fanatic
    Posts: 7,940

    MOW ED,

    You are not making any more money from the customer. Your just not lowering price so that it comes out to $30 with tax. State sales tax is added (6% here) to all mowings. If its a $30 lawn I add $1.80. This is giving me a 0 % raise. I would never back out the tax. A $30 lawn is a $30 lawn. Customers understand that its the Governer getting it and not me. Here in PA snowplowing isn't taxabe so I dont have to tax that.

  10. Greenkeepers

    Greenkeepers LawnSite Senior Member
    from NE Ohio
    Posts: 695


    I think the tax that you are talking about is sales tax. You will need to call your states treasurers office to see if you are required to collect sales tax. In OH we are.

    You have to remember that sales taxes are not an expense, they are a liability. When you send an invoice it includes all the sales tax collected. Then you submit the monthly amount to your treasurer.

    Hope this helps, email me if you have any more questions w/ taxes

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