Taxing in a neighboring county?

Discussion in 'Business Operations' started by MOW ED, Sep 7, 2003.

  1. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    I feel sort of goofy with this one but thats what the forum is for.
    I am in Brown County where my sales tax is 5.5%, no problem. All my customers pay the 5.5%

    Now if I get a mowing job in a neighboring county that has a 5% tax do I charge my 5.5% or the 5% that their county requires? I know I can find out by calling my DOR but what do you guys do? Don't say I don't pay either:angry: . Thanks
  2. Way it works here
    Collect appropriate % for city/county you are working in and pay it to that entity. Need a separate sales tax license for each.
    Luckily we don't collect tax on labor, just materials.
  3. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    As Bob said, charge % for area you perform the work in. Wisconsin doesn't require any seperate licenses for different counties.

    Besides, do you even pay taxes Ed? :p J/K

  4. GLAN

    GLAN Banned
    Posts: 1,647

    Realisticaly you will need to be licensed for the county and all the appropriate paper work associated with it.

    Also bear in mind that some localized incorporated villages may have their own contractor licenses, though they are not involved with the county tax.
  5. bruces

    bruces LawnSite Senior Member
    Posts: 648

    First of all, the state sales tax laws are state specific, so take any advice from someone from out of state with a grain of salt, it might not be the same in your state.

    In Missouri, services aren't taxable, but sales are taxed in the jurisdiction that the transaction takes place in. So in your instance, if the laws are similar, you would charge the rate for the other county.

    Check with your accountant or the state's web site to see if you can find more information.
  6. GLAN

    GLAN Banned
    Posts: 1,647

    I wish services weren't taxable in NY

    In fact all our suppliers charge us sales tax for the materials we buy. We then sell it at a higher rate and tax that. We can how ever deduct the amount of tax we paid to the supplier.

    Wheels of Government are not so dumb. They realize this is a cash business and figure they would get something on the front end.

    Talking about sales tax.

    New York City earlier this year did an internal tax audit for restaurants. Found that the City is owed some $200 million, not including penalties. Reason why the City did this is cause they are broke. So is the State and the County I live in.

    State this past mid July raised sales tax .25%

    Now I am just waiting for news that out County Tax Dept is going around looking for non payed or under paid sales tax. I hope they do.
  7. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    I don't pay sales tax on services in MI either.

    :D :D :D
  8. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi MOW ED,

    Our software allows you to set up as many sales tax regions as you need. Once it's set up, you don't have to worry if you are collecting the right % for the right county.
  9. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Thanks for all of the replies folks.
    I know the tax laws are specific to each state and I was curious as to what others do as well as in Wisconsin.
    Randy, Thats a good one. I know you are kidding. Do you know how hard it is for me (a Bear fan from Chicago) to pay that EXTRA tax to help build Lambeau field.:angry:
    Ya even though I am a mini lawn care operation, I pay em and have been the whole 8 years. I never encountered the cross county problem before. Thanks again!

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