Do You Guys Charge Sales Tax On Mowing?

Discussion in 'Business Operations' started by bishop65, May 13, 2002.

  1. bishop65

    bishop65 LawnSite Member
    from Ohio
    Messages: 6

    This is my second yera in the biz and I have noticed that I might be the only one in my area charge sales tax on weekly mowing. Isn't it against the law to not charge sales tax? My father in law and I do my taxes and I have been charging sales tax on materials and labor hours from the very beginning.

    Do you have to charge sales tax on mowing?

    Must of the competetion is getting flat rates for mowing (example $25.00)

    Thanks for your response

  2. E-man

    E-man LawnSite Member
    from PA
    Messages: 136

    It varys from state to state what you pay sales tax for. Here in PA we charge sales tax for mowing and landscaping unless its new construction. But we dont charge sales tax for plowing and salting or tree trimming or removal. Check your local tax office and they should be able to send you a list of whats taxable and whats not.
  3. Toroguy

    Toroguy LawnSite Bronze Member
    Messages: 1,075

    Your competitors may be figuring the tax into their price? Doesn't seem right?
  4. 1MajorTom

    1MajorTom Former Moderator
    Messages: 6,073

    Here in PA in the county we live in, it is 6%. Some other counties in PA are 7% though.

    Just because it is a round figure doesn't mean they might not be collecting the sales tax.

    We have already placed bids where we have said $50.00 a cut.
    That would take it down to $47.17 - $2.83 goes to the tax.
  5. wolfpacklawn

    wolfpacklawn LawnSite Member
    Messages: 120

    Here in Nevada there is no sales tax for mowing services or any other service that I know of. Sales tax on merchandise only. Thank goodness! Also, no personal state income tax.:blob3: This happens to be a very friendly tax state for your average person.
  6. Lanelle

    Lanelle LawnSite Bronze Member
    Messages: 1,361

    No sales tax for service labor here. You have to follow the laws of your jurisdiction.
  7. gogetter

    gogetter Banned
    Messages: 3,256

    Is there any requirements that the tax has to be itemized seperately on the bill/invoice? For some reason I thought it had to be.
  8. 1MajorTom

    1MajorTom Former Moderator
    Messages: 6,073

    Not sure about that, but we always invoice separately.

    So a $50.00 lawn cut 4 times would be billed out like this for us.

    4-04-02 - $47.17
    4-11-02 - $47.17
    4-18-02 - $47.17
    4-25-02 - $47.17

    Subtotal ------- $188.68
    PA Sales Tax ------- $11.32
    Total ------ $200.00

    Most times we have a $50.00 lawn though, it is $50.00 plus $3.00 tax.

    Just trying to show that because a lawn is calculated at a round number, doesn't mean that sales tax is not being withdrawn from the total and turned in.
  9. ohiolawnguy

    ohiolawnguy LawnSite Senior Member
    Messages: 397

    as far as strictly lawn mowing goes, yes, here in ohio you are required to charge sales tax.(since 1992) as you get into landscaping, the definitions regarding when to charge sales tax become a little fuzzy, and even confusing.

    we basically charge sales tax on everything except snowplowing, but we also charge sales tax on a salt application while snowplowing.

    Lawnlad made a good example of the interpretation of when to charge sales tax in ohio for certain types of landscape jobs in a recent thread. try a search, and see if you can find it.
  10. thelawnguy

    thelawnguy LawnSite Silver Member
    Messages: 2,412

    The only ones legally able to charge sales tax are state and local government. You as a businessowner only collect the tax charged by the gov't.

    There is a difference.

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