1. Missed the live Ask the Expert event?
    Catch up on the conversation about fertilization strategies for success with the experts at Koch Turf & Ornamental in the Fertilizer Application forum.

    Dismiss Notice

Sales tax

Discussion in 'Pesticide & Herbicide Application' started by RigglePLC, Feb 9, 2007.

  1. RigglePLC

    RigglePLC LawnSite Fanatic
    Messages: 13,723

    Michigan. :confused: Governor is talking about a sales tax on services--like lawn care. Is anybody in other states collecting this tax. How does it work and is the bookkeeping a big hassle? Do customers complain? How does your invoice have to change? Computer changes?
  2. MStine315

    MStine315 LawnSite Senior Member
    Messages: 789

    Thanks for bringing this up in this specific forum Riggle. I know it's all over Plowsite and other threads here, but my question is, do we tax for just our service, or do we have to seperate out the materials we are applying? I'm thinking this is going to be a huge headache!! Sure, 2% for mowers and plowers is hassle enough, but man, I don't know how we'd set up a seperate service fee. Something like a flat per stop fee and tax on that? My head's spinning, time for another beer!
  3. grassroots lawn

    grassroots lawn LawnSite Member
    Messages: 84

    Sales tax on lawn services in pa is a must by law but''according to my accountant'' if joe homeowner gives you cash after each service then there are ways around it..that could open a big can of worms
  4. indyturf

    indyturf LawnSite Bronze Member
    from Indy
    Messages: 1,901

    We have been collecting sales tax in Indiana for years. they say if you use a product to perform a service it's taxable. its just one more thing to do every month.
  5. MStine315

    MStine315 LawnSite Senior Member
    Messages: 789

    I know a lot of other states do tax on services, but that's my question, do you tax on just the service portion, or the whole visit, which includes materials that have already been taxed?
  6. teeca

    teeca LawnSite Bronze Member
    Messages: 1,202

    my understanding in indiana, and the way i have been doing it is as follows. if you itemized you billing (labor/materails) then you can divide the tax, ie... if you treat a lawn and bill it as: $30, then you need to tax the whole amount. but if you itemize, like: fert $20 and labor $10, then you charge tax on the $20. i do a ton of maintenance and thats how i charge, customers want a detailed bill anyway, makes them fell warm inside. hay indyturf, do you still have those old sprayers sitting aorund? i lost your number.
  7. MStine315

    MStine315 LawnSite Senior Member
    Messages: 789

    Cash will get you out of paying a lot more than just sales tax. I'll leave it at that.
  8. MStine315

    MStine315 LawnSite Senior Member
    Messages: 789

    Thanks Teeca, that's kind of what I was after.
  9. philk17088

    philk17088 LawnSite Fanatic
    Messages: 17,386

    And get you into paying a lot more too:laugh:
  10. Shades of Green LService

    Shades of Green LService LawnSite Bronze Member
    Messages: 1,011

    Always had it in Jersey. The most corrupt state in the WORLD!:cry:

Share This Page