Sales Tax

1MajorTom

Former Moderator
Location
Pennsylvania
Hiya,<p><br>I have a question concerning sales tax on grass cutting, hedge maintenance, etc...<p>Is everyone charging it?<p>Here in Pennsylvania, sales tax is 6%.<br>Our first year, we made a mistake when doing our bids. We did not include sales tax in the bids.<p>So say we bid a yard at $45.00 per cut.<br>Because we said $45.00 initially, I kept it that way. So $42.45 would be the price and $2.55 would go for sales tax.<p>This year we really wised up. A $45.00 yard is now $47.70. We tell each customer upfront that we charge sales tax.<p>But we find that some people balk at the idea. They say they want to pay us cash instead. We explain to them that we are a fully insured legitimate business and that we must charge the tax.<p>So my question to you guys/gals out there, are you all charging the sales tax? And if you do, then do your customers understand? Our accountant said that we had to charge the tax, no way around it. <p><br>Major Tom's wife
 

mowerman90

LawnSite Bronze Member
Location
Spring Hill, FL
Speaking as a former &quot;Pittsburgher&quot; (born and raised in PA)the soulutions a simple one: Move to Florida! There's no tax on labor, also no state income tax. The only thing I miss about PA is the Steelers.
 

CA Enterprises

LawnSite Member
Yes, I charge it!!!! When I do a bid I tell them it doesn't include the tax. And if it is a formal bid on a bid sheet at the bottom I add the statement &quot;Does not include Tax&quot;. I haven't had anyone question this yet. If they did they can pay or I walk. <p>There is another guy here who doesn't say anything about tax but adds it to his bid, it is included already.<p>Adam:)<br>
 

GroundKprs

LawnSite Bronze Member
Location
South Bend, IN
In Indiana there is no tax on services, just on sales of products. We have to charge tax for fertilization, and for materials like shrubs, edging, flowers, sod, etc. The customer gets the labor without tax. <p>----------<br>Jim<br>North central Indiana
 

yardsmith

LawnSite Senior Member
Location
Ohio
In Ohio I have to pay sales tax by the 23rd of every month.<br>Customer gets 6.25% added onto their bill for mowing. Only had 1-2 people ever say anything about it. Others accept it- it's not my law, it's the state! If I do landscape renovation, I add sales tax to labor only, not materials (that's in their cost already). A $25 lawn is billed for $26.56.<p>----------<br>Smitty ô¿ô<br>
 

MOW ED

LawnSite Fanatic
Location
N.E. Wisconsin
Yes I charge the sales tax on both lawn care and fertilization. I still bid as you did with a round number as I padded my estimates to include this tax. I found it to be easier. It now gives me the opportunity to raise my rates by 5% if I want to by implimenting the tax. <br>I just started my fert business this season and all customers get an invoice that has tax itemized. On the other hand, I have a sellers permit and don't pay tax on any of my ferts or pesticides when I purchase them from the dealer. Good Luck.
 

Scraper

LawnSite Bronze Member
Location
SE Pennsylvania
From PA here too and of course I charge sales tax as required by law. If the customer has a problem with it I keep a copy of the tax regulations in my truck which shows what are taxable services and what are not. Haven't had a problem yet. Although I had some new accounts tell me that they weren't paying their &quot;old&quot; lawn service sales tax. My reply is...&quot;well I guess that your &quot;old&quot; lawn service probably wasn't insured either&quot;. Makes my biz look like a class act!
 

Eric ELM

Husband, Father, Friend, Angel
Location
Chicago, IL USA
I'm sure glad Illinois don't have tax on labor. Sounds like a hassle<p>----------<br>&lt;a href=&quot;http://pages.prodigy.net/eric.erickson/&quot;&gt;Eric@ELM&lt;/a&gt;<br>The Grass is always Greener on the other side of my competitors fence
 

Greenkeepers

LawnSite Senior Member
Location
NE Ohio
Same as Smitty here! We have to charge it too!! Like others we made the mistake and included it in the price of a cut. This year it is on top. We charge tax on everything, mulch,shrubs,fertilizer etc....<p>Mike<br>Greenkeepers
 

jcoat

LawnSite Member
Location
Muskogee OK
If your state has one, goto the tax commission web-site and find if they offer classes on taxation. Oklahoma offers the workshops for free and the administrator offered his # and e-mail for business-related questions. It sure ironed out a lot of questions I had and the class was only two hours long.<br><p><font size="1">Edited by: jcoat
 
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