Charging tax on lawn services....

Discussion in 'Business Operations' started by RLS2005, Feb 3, 2005.

  1. RLS2005

    RLS2005 LawnSite Member
    Messages: 50

    I was just wondering if you guys charge taxes on lawn mowing or any landscaping work that you guys do when you send them their monthly bills. I didnt know if this is something that you want to show them on their bill for example....$25 per cut, 4 cuts...$25x4=$100 x1.06= $106 or do you just include the taxes as part of the $25 per cut....thanks for the info :help: . I didnt want to look stupid or cheap when I start sending out bills.

    Ron :cool2:
  2. K.Carothers

    K.Carothers LawnSite Bronze Member
    Messages: 1,124

    You won't look cheap charging sales tax. It shows that you are a true,honest and ethical business. Make sure you tell your customers at first that you have to charge sales tax. you can flat charge but I found that I'm the one that loses out(7%). Do your estimates based on what you need to make to turn a good profit and let the customer pay the sales tax. :waving:
  3. DR Lawn & Landscape

    DR Lawn & Landscape LawnSite Member
    Messages: 9

    well I asked this same question earlier tonight. but agree with first reply. I plan on letting all my clients know that I am having to charge taxes. check with your local field tax office for laws in your area.
  4. promower

    promower LawnSite Bronze Member
    Messages: 1,233

    I didnt the first year my accountant told me I didnt have to. Then I was talking to a good friend of mine that operates in the same area as me and said that it was required to charge the tax. Called my accountant she assured me I didnt have to, but for peace of mine I told her to double check. Calls me back about a half hour later said she was wrong so I ended up having to pay on the prior years income, then my accountant sent me a bill for $110.00 to look up that info for me :dizzy: I couldnt belive it she screws me the first year and then charges me (an outrageous amount I thought) needless to say I have a new accountant and charge sales tax. Sorry got a little off topic but that still burns me.
  5. CuttingCrew

    CuttingCrew LawnSite Member
    Messages: 193

    When customers say "you have to charge me sales tax?" my reply is "The State of Ohio charges you sales tax, I just have to collect it for them."

    CURB APPEAL NC LawnSite Member
    Messages: 118

    In NC you cant charge sales tax on a service only on a sale of a product hence the word sales tax! Are you guys gharging for service or the products you use on there properties?
  7. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    Curb, not every State's law is the same on sales tax. Some states do require that you charge sales tax on services.

    Just like in NC (at least for the time being, that could oon change due to the $1B the new General Assmby has to find this tax year) you don't charge for certain services. BUT if you are buying your supplies such as pine needles, mulch, etc at Wholesale and not paying State Sales Tax then you must have (we do) a State Sales Tax ID Number and charge the customer.

    CURB APPEAL NC LawnSite Member
    Messages: 118

    Damn! before long their going to tax you to take a sh!t !!!
  9. mastercare

    mastercare LawnSite Senior Member
    Messages: 289

    Sales tax only has to be charged in states that require it. It must also be a separate line item on your bill. Here in MI, no sales tax currently charged for services. However, that #$#%^ governor Granholm is looking to change that. Way to screw over those who elected you....again.

    I have a question though: How many of you in MI do mulch installs, and charge sales tax on the mulch? What's the ruling on this? You're providing a service which requires the purchase of materials. Does that mean you have to get a state tax license and tax the customer? Or, can you just call it a service, and install it for a flat fee, since most of your bill is labor, and you already paid the tax when YOU bought it?
  10. Mycannon

    Mycannon LawnSite Member
    Messages: 98

    State of louisaina you don't charge sales tax on service

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