Texas Roll Call

Discussion in 'Network: South' started by PlantscapeSolutions, Dec 24, 2011.

  1. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,184

    I have considered it but have not tried it. I think you can get pretty granular on how localized you want the ad's and demographics.
  2. Hope Landscaping

    Hope Landscaping LawnSite Senior Member
    Posts: 278

    Yeah, I went through the process to see how detailed it was, but didn't finish it.

    BROWNS LAWN CARE LawnSite Senior Member
    Posts: 615

    question on sales tax for you texas guys...

    the law reads:

    the line bolded to me says if my YTD earnings (let's say at the end of quarter 2) are $5,001 or $50,001, i don't have to collect/pay sales tax until the first day of quarter 3...

    is this correct?

  4. PlantscapeSolutions

    PlantscapeSolutions LawnSite Silver Member
    Posts: 2,979

    Your best bet is just to call the comptrollers office and seek clarification. When I started we were able to pay quarterly but once we hit a certain level of sales we had to pay monthly. Monthly is really better so your not sitting of thousands of dollars that are not yours to spend.

    The only non taxable things I do are consulting and retaining walls. If you do ponds those are also non taxable since ponds and wall will ad value you will be taxed on from property taxes.

    I did irrigation years ago and if I recall correctly residential labor was not taxable but commercial was. I'm sure someone else can chime in on this.
  5. Hope Landscaping

    Hope Landscaping LawnSite Senior Member
    Posts: 278


    You would need to pay sales tax on it, they would be due by the 20th of July if it was from the 2nd Quarter. You may need to file an extension if you missed the 2oth. Best thing to do would be find a good CPA and have them do those things for you. They really are worth it.

    BROWNS LAWN CARE LawnSite Senior Member
    Posts: 615

    sales taxes aren't due until the 22nd of july for 2nd qtr this year. i can still make it by filing online, just need to understand the law.

    i still don't understand what either of you are saying. do i owe sales tax on anything over $5000 or do i owe tax starting in the qtr after i go over $5000 in income?
  7. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,184

    The most recent 4 quarters is the key here. If you are just starting out as a loner then you do not worry about Sales Tax until you break the 5K mark in gross sales. The moment you break 5K you owe sales tax on all of it.

    BROWNS LAWN CARE LawnSite Senior Member
    Posts: 615

    ok, so i owe sales tax on all of my income for the year, as last year was my first and i did not pick half of my last years customers until very late.

    thanks for your reply ELS, that makes sense.

    it's only if your most recent 4 qtrs stay under $5K they let you get away with it. like a retirement job...
  9. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    I'll pose the answer as an example just for clarification and understanding. Say you started April 1st last year and your income was $1250 for Q2 of 2012, $1250 for Q3 of 2012, $1250 for Q4 of 2012 and $1251 for Q1 of 2013. Your previous 4 quarters would have exceeded the $5000 mark ($5001) and you would begin to collect sales and use tax on the first day of Q2 2013 (April 1st). If you had made $1 less in Q1 of 2013 then the clock for collecting sales tax would not have kicked in yet and you would have to wait and see what your Q2 2013 numbers were to know if you needed to start collecting in Q3. I hope the example helps clarify the code. It's always dependent on a running total of your most recent previous 4 quarters that you look at.
  10. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,184

    The intent seems to simplify for the retirement job as you say or the high school kid mowing a few lawns.

    Keep in mind you can do this two ways. Just collect the money and tell the state your gross sales and pay the taxes out of pocket or do like most other services and add the sales tax to the invoice. :waving:

    Edit: and do not do like I did and collect and pay based on the location of service. You pay based on your location. If you are less than 8.25% then you may have to collect the extra based on the service location. It is crazy in that regards, but it is not a worry if you operate out of an area that already has 8.25% sales taxes.

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