Sales Tax

Discussion in 'Christmas Trees & Seasonal' started by cmturner, Sep 11, 2009.

  1. cmturner

    cmturner LawnSite Member
    Messages: 37

    How do you all do the sales tax on your product. I know the guys that rent the lights aren't going to be paying it but what about the guys who sell it. I have actually been thinking of using a structure similiar to Davids but how do you do the sales tax or do you? I am thinking that if I am selling them the "Decorating Service" based on linear ft pricing that I won't have to collect sales tax. OR do you have to break that 6.50 a foot down for the tax man and say ok, 2.00 ft of it is materials? Then how does wreaths work for taxes? Thoughts and input would be greatly appreciated. I realize all states tax laws are going to be a little different as well.
  2. turf hokie

    turf hokie LawnSite Silver Member
    Messages: 2,751

    Not sure how it works in your state. But here, even renting, we have to charge sales tax on the entire amount. 8.375% across the board.
  3. hotrod1965

    hotrod1965 LawnSite Senior Member
    Messages: 587

    Check your state laws.

    Here, if I sell you an item, I have to charge you tax. So I would have to determine how much per foot is the item price and how much is installation. We don't have sales tax on most services here, but we do have use tax.
  4. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,645

    Christmas light service businesses have no sales tax here. Our pricing includes the install, and does not seperate out the product. If you have a retail store, then you are taxed.

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