Question on when to collect and pay taxes on plants

Discussion in 'Starting a Lawn Care Business' started by garden.nanny, Sep 20, 2010.

  1. terrapro

    terrapro LawnSite Bronze Member
    Messages: 1,234

    Yep, if you don't mark it up and you paid sales tax when you purchased the materials then you don't need to collect again because it has already been paid. In your accounting just call it material reimbursment or something along those lines.
  2. garden.nanny

    garden.nanny LawnSite Member
    Messages: 29

    Love the government! Why, if I buy from a retailer, and pay the tax and show the receipts showing tax was already paid, why would it have to be collected again? I don't even mark up the plants. It's like being a personal shopper. I give the receipt to the customer and they reimburse me.

  3. garden.nanny

    garden.nanny LawnSite Member
    Messages: 29

    P.S. I charge them for the time I put into shopping for them. I don't plant many plants - just usually replacements for those that have bit the dust. So marking them up isn't going to make me rich. I'm a one person operation- maintenance is my specialty and I am not a landscaper.
  4. garden.nanny

    garden.nanny LawnSite Member
    Messages: 29

    Another P.S. Plus doing it that way - the retailer guarantees them for 1 year and I don't have to lose $$ on replacement. Just show the receipt and voila.
  5. starry night

    starry night LawnSite Gold Member
    Messages: 3,318

    Those are good points, Susan. In Ohio it is OK to pay the tax on resale items and then merely include that to your customer. But again, you are filing a sales tax return through your service vendor's license for your labor, right?
  6. Andover Landscape Co.

    Andover Landscape Co. LawnSite Senior Member
    Male, from Lexington,KY
    Messages: 573

    I agree with Marc. It seams this doesn't work in Ohio..That must stink for you guys...I checked into service tax in KY and found that there is none as of this year but they are looking into it....If you buy in KY and plant in OH or vise versa who knows?... Id go with OH just to be safe, They will always find a way to stick it to ya....
  7. starry night

    starry night LawnSite Gold Member
    Messages: 3,318

    That's why so many businesses started leaving Ohio 20 years ago.
    (Not because of sales tax.) Statewide income tax and many other taxes which made Ohio business-unfriendly.
  8. silverado212

    silverado212 LawnSite Senior Member
    Messages: 373

    Ohio sales and use tax law says that you have to collect sales tax on mowing services also. Sucks but better to be safe than sorry. You have to give a tax exempt form either unit or blanket to the supplier you are purchasing from. You pay flat rate to supplier then collect appropriate tax per county in OH. Susan not to sound like an a$$ but hopefully you are collecting and paying tax on your services. All the info you want to know is online and in the info you receive from the state when you get your service vendors license.
  9. integrityman

    integrityman LawnSite Bronze Member
    Messages: 1,713

    clark is 100% correct....buttttt I can buy them for you and charge a small mark up + tax..... PM me with what you want and I can get ya prices and product...

    Licensed...bunches of em....:cry::cry::cry: Nurserymens license went up to 125$ from $75... a-holes!
  10. starry night

    starry night LawnSite Gold Member
    Messages: 3,318

    You forget that she is looking for a guarantee; can't get it from the wholesaler or you as a re-wholesaler.

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