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Tax on Mowing. Unbelievable...

Discussion in 'General Industry Discussions' started by tinman, Feb 15, 2010.

  1. P.Services

    P.Services LawnSite Fanatic
    Messages: 6,319

    i can think of one way it will help me and hurt the state. thats all im gona say.
  2. Swampy

    Swampy LawnSite Bronze Member
    Messages: 1,435

    Whats that switch to non taxable service?

    PS why the screen name change?
  3. meicher806

    meicher806 LawnSite Senior Member
    Messages: 385

    Ok, you got me there I dont do too much on the landscape side, i forgot that there are a few things that dont get tax'd :hammerhead::hammerhead:
  4. P.Services

    P.Services LawnSite Fanatic
    Messages: 6,319

    switch to non taxable payment options :cool2::cool2::cool2:
  5. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    I can't even believe this is being revisited. You guys are exactly on to something that had been discussed HEAVILY with our state reps. The people that will REALLY benefit off this is the guys that are doing this illegitimately - the ones operating "under the radar". Many clients will go for the cheaper price - MUCH cheaper price - leaving all us taxpaying businesses holding an empty bag. Well,...guess what...with a decline in business, so will there be a decline in the amount of state income tax we will be paying. THEN let's see how much overall tax revenue will be going to the state. We marched on our state capitol in 2008, and we were effective....they saw the light. we divided into groups and went into the offices of our state reps and they listened with open ears. the idea behind this rally was to put faces behind the term "landscape industry".
    She should have gotten the message then....but now, as she's on her way out,...perhaps it's just that she does not care. Tell a person once, and shed some light on that which they do not know or realize, - we can call that innocent ignorance. But to have to tell someone twice - after they KNOW the facts and the results it could have? that is shear stupidity.
  6. Kickin Your Grass

    Kickin Your Grass LawnSite Senior Member
    Messages: 479

    I feel you pain! We (or should I say "some" of us ) have been collecting sales tax on our services here in Texas for a long time. It's a pain but we deal with it.

    btw....Have fun bidding with joe blows lawn care from down the street who is not forced to charge it.....
  7. 360ci

    360ci LawnSite Senior Member
    Messages: 998

    5.5%, must be nice. Ontario sales tax is 8%, and depending on the product/supplier it can be as high as 13%. I'd LOVE to pay only 5.5%! Damn.

    Mind you, the same thing goes for fuel, you guys are paying $2.75/gal, but the Canadian equivalent is close to $4.00 for a US gallon. All lawn services in Canada are charged GST, the federal sales tax (5% at the moment), but provincial sales tax is only added for some services (8%) and isn't used often. This July, everything will be 13%. Lucky us.
  8. JohnnyRocker

    JohnnyRocker LawnSite Senior Member
    Messages: 741

    I guess if the fly by nighter has commercial properties. I don't see home owners deducting. JMO
  9. True...Homeowners can't deduct unless they're medically unable to mow their own lawn. Then they have to itemize and most don't.

    But homeowners are still obligated to pay sales tax. (there's an exemption in Ohio if your neighbor mows your lawn) So if they write the LCO a check, there's a record. And it better have sales tax.
    If someone collects sales tax and don't pay it to the state, It's a crime.

    I make it part of my sales pitch, "I'm licensed, insured and collect and pay in sales tax."
    Then I watch their faces when they get an expression kind of like this;:confused:
  10. ryde307

    ryde307 LawnSite Senior Member
    Messages: 540

    We have sales tax on mowing and alot of Service's. Most landscaping is not taxed. Our problem is We live and work on a county line. One county has a higher sales tax because of a stadium funding deal and the other does not. So the trick is finding out what tax to charge. It states charge based on your business location. Well our office address is in the higher of the 2 so when we charge to the lower county people get upset they are being charged. Its a mess

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