How to handle sales tax when quoting

Discussion in 'Bidding, Estimating and Pricing' started by JVLawn&More, Jan 10, 2019.

  1. JVLawn&More

    JVLawn&More LawnSite Member
    Messages: 5

    Hey guys, I'm curious for those of you who deal with state sales tax, how do you figure it when quoting on labor only jobs? I'm a new start up in CT concentrating on mowing and snow removal to start. It seems like people want a whole number, $35, $40 etc. I'm used to estimating service repair jobs where you quote or estimate a job "plus" tax and/or shop supplies. Is this the way this business is usually quoted $35 plus tax or do you say to your self I want to get $35 for this lawn, tax will be approx 3.45 so I'll quote $40 and calculate the tax out later? I'm sure there is more than one way to skin the cat just wondering how everyone else does it. Also if your whole number quoted amount includes the tax, do you break it down on the customer's invoice or just show the total amount?
  2. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,206

    Why wouldn’t you add the sales tax on a separate line. $35 plus tax?
    BMWNJ likes this.
  3. JVLawn&More

    JVLawn&More LawnSite Member
    Messages: 5

    Certainly the way I would prefer to do it, again just trying to feel out industry norms. I've just never seen plus tax in any advertising around here.
  4. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,206

    Most grocery stores don’t list “plus tax” on their advertisements. I mainly see the “plus tax” when there is a discount or some sort of sale going on.

    I’d just be sure to fill out the sales tax line on the estimate so they are fully aware of it. I’d rather see I’m paying sales tax than have it hidden and never know.
  5. JVLawn&More

    JVLawn&More LawnSite Member
    Messages: 5

    This is true. Thanks for the reply's.
    Matthews Lawn Care likes this.
  6. Hitch82

    Hitch82 LawnSite Member
    Messages: 9

    I personally do the tax separately on the invoice. I have a dashboard on the invoicing program that allows me to pull that info easily at the end of the year (or whenever I want) to make filing easier. If you do the way you mentioned “35 rounds up to 40 ect)” that will possibly be a problem later in the season or EOY. Hope this helps.
  7. LawnSite Fanatic
    Messages: 5,353

    If you don't separate out the tax YOU will pay tax on the $40 because according to invoice you charged $40.
    Not $35 and rounded up.

    I bid the price of the lawn.
    Then on invoice add the tax of 6.875%.
    I've only had 1 person ever complain they weren't aware that lawncare was taxed.

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