Tax Exempt Question

Discussion in 'Business Operations' started by CK82, May 9, 2006.

  1. CK82

    CK82 LawnSite Member
    Messages: 235

    I was called to remove a tree today for a church, I got back to them with an estimate and said it would be $385 + tax to remove the tree, the lady responds, "Were tax exempt" I said I think that only applies when you are purchasing materials for re-sale. She said no we have had snow removal service in the past and havent paid any tax. So is she right or what? Please help.
  2. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    Yes churches are Tax Exempt thus making them also exempt from state sales tax.....BUT in most states they are required to pay all sales tax and then apply to the state at the end of the year to get those funds back directly from the state. IF your state though does not require it be done like that then you need to make sure that you get a copy of the church's state sales tax exempt certificate and keep it with your records in case you ever go through a state sales tax audit. Simply saying that the church "said they were tax exempt" is not enough in an audit.
  3. CK82

    CK82 LawnSite Member
    Messages: 235

    So if there exempt then I do not have to pay the sale tax to the government that was incurred by removing the tree? Or do I?

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    you will not have to pay sales tax on that if they are tax exempt. when you file your sales tax report it should have a place for tax exempt sales, at least here it does.
  5. drmiller100

    drmiller100 LawnSite Senior Member
    Messages: 562

    every state is different. call your state tax department, they will tell you.

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