Who collects sales tax????

Discussion in 'Landscape Architecture and Design' started by fool32696, Oct 8, 2007.

  1. fool32696

    fool32696 LawnSite Senior Member
    Posts: 992

    I'm in the process of setting up a legitimate lawn maintenance and landscape business in Florida. The state is telling me that I need to collect sales tax on plants that I install. How many of you guys do this? What does your state require?
     
  2. Crusis

    Crusis LawnSite Member
    Posts: 40

    You know, that's a pretty good question. I've just been paying the sales tax when I buy, and just charging the customer the price I pay + the sales tax I pay for physical goods, and then $65 an hour for labor. I assume that since I paid for the sales tax when I bought it, that I'd be good with the state since my state doesn't tax services.

    To be honest, though, I'm not sure if I'm supposed to do it that way. The end result is the same since I would save my customer sales tax by charging them the minimum on the hard goods I can and a bit more for labor.
     
  3. jrc lawncare

    jrc lawncare LawnSite Senior Member
    Posts: 420

    I do. Required in NY, what a surprise.:rolleyes:
     
  4. General Landscaping

    General Landscaping LawnSite Senior Member
    Posts: 802

    When you are paying tax on your purchase, then re-selling as installed...you do not collect sales tax for the state.
    If you were to buy and re-sell at your lot, then you would not pay tax on the purchase; but you would collect tax for the state upon selling.

    Even if you were to have a half pallet of sod left over, and the customer's neighbor wanted to buy it off the trailer, technically, you should collect tax on that sale. I'm not sure if charging "delivery" would negate that requirement.

    No tax on services.
     
  5. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    Heck no, more crap to keep up with and time I don't have. If asked, all margins are 'labor'.......never sell a product directly in the eyes of the state.
     
  6. fool32696

    fool32696 LawnSite Senior Member
    Posts: 992

    I like where you're head's at tthomas. Have you ever had any problems dealing in that way?
     
  7. LTL

    LTL LawnSite Member
    from Tulsa
    Posts: 98

    It doesn't matter if you pay the tax at the nursery or if you charge the customer the tax. As long as the item has been taxed it doesn;t matter who pays it. Make it easy on yourself and pay the nursery. If you charge the customer the tax it's just more paperwork for you and thats no fun.
     
  8. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    ditto

    There is no issue. We are not retailers. Buy your product and sell it to your customer. Nobody on here buys a $200 tree and sells it to the customer at a mark up price for them to install. If you do, well, keep your eye on the help wanted adds for a job.

    Really, there is nothing to be sneaky about. Simple as are you a retailer or not........answer is NO.
     
  9. Mike33

    Mike33 LawnSite Bronze Member
    Posts: 1,649

    Maryland is proposing a tax on labor, i think it will be a nightmare if it happpens. I remember when i was in the auto-body business ( earlier lifetime ) i live with in 2 miles from Pa. and had customers from there. I had some insurance work at times where they actually allowed for the tax on labor. here in md there is 5% on goods but none on labor. Could you imagine doing the breakdown on the labor , sitting it aside then paying every quarter. Or worse yet telling your customer btw an extra 5% for tax. Does any one else from other states have to deal with this?
    Mike
     
  10. General Landscaping

    General Landscaping LawnSite Senior Member
    Posts: 802

    When I got all set up, everything was OK... then I got a call from the Dept. of Revenue a few months later asking about my tax ID #....... Crap:eek:

    As it turns out, I don't even need one:cool2:

    You'll be OK, just sell everything installed.




    I worked at an auto shop years ago and one job comes to mind. Broken exhaust studs on a 2.4 DOHC turbo. If the ticket has any parts on it, there is tax on the whole job. There was $600 in labor and $7.50 in parts.
     

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