# UMM, sales tax?



## treemandan (Jan 22, 2008)

I did talk to an accountant before I hung up my shingle about things like this, also have heard conflicting information about it. But my CPA said there is NO sales tax due for tree work in PA. I guess some states may vary with this. What do you think?


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## Husky137 (Jan 22, 2008)

I guess you need to trust your CPA. I would imagine that he is familiar with the Pennsylvania tax code. If you think he is wrong on a such a basic matter, I would find a new accountant. In Mass no sales tax on services, just goods.


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## treemandan (Jan 22, 2008)

Are you in Pa?


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## treemandan (Jan 22, 2008)

well I was reading masterminds post and he said he owed back taxes on sales tax. I just got me thinking: it doesn't make sense him owing sales tax. I mean what states out there make you charge sales tax on tree work? Never heard such a thing but I might be wrong.


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## Husky137 (Jan 22, 2008)

treemandan said:


> Are you in Pa?



No that's why I offered up the info on Mass. Sales tax is a state to state deal. If you don't trust your accountant more than some guy posting on the internet, get a new one.


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## treemandan (Jan 23, 2008)

Husky137 said:


> No that's why I offered up the info on Mass. Sales tax is a state to state deal. If you don't trust your accountant more than some guy posting on the internet, get a new one.



I never said anything about trust in any way shape or form. It is just that I "heard" conflicting info on it and was intrested to see what others states did. If I remember right; sales tax on landscaping but not tree work. Not only is that wierd but things change all the time. So, does it make sense that mastermind says he owes sales tax AND what states require sales tax. I could die happy never knowing but I was just curious. One thought: if all states did charge sales tax they would have more money to employ better people to care for the trees. On the other hand you might see more hacks doing work for cash.


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## OilHead (Jan 23, 2008)

There is never sales tax applyed to labor only to parts weather they are new or used .


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## treemandan (Jan 23, 2008)

OilHead said:


> There is never sales tax applyed to labor only to parts weather they are new or used .



I pretty much knew that but wasn't really sure. There are some states that don't even have sales tax. So what is mastermind talking about sales tax for?


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## mckeetree (Jan 23, 2008)

treemandan said:


> well I was reading masterminds post and he said he owed back taxes on sales tax. I just got me thinking: it doesn't make sense him owing sales tax. I mean what states out there make you charge sales tax on tree work? Never heard such a thing but I might be wrong.



Texas does and they are real serious about it.


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## OilHead (Jan 23, 2008)

It has allways really gotten to me that if you buy a used vehicle when you go to transfer it the DMV has there hand out demanding 8.25% use tax. The tax was paid when the vehicle was new so is'nt that double taxation ? Not the way they look at it because there not taxing the same person.


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## Husky137 (Jan 23, 2008)

treemandan said:


> I pretty much knew that but wasn't really sure. There are some states that don't even have sales tax. So what is mastermind talking about sales tax for?



He is far from being a mastermind?

Seriously, if you are comfortable with the advice given by your accountant then I wouldn't sweat it. Especially given the source of your concern.


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## ATH (Jan 23, 2008)

treemandan said:


> I mean what states out there make you charge sales tax on tree work?


Ohio


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## treemandan (Jan 23, 2008)

ATH said:


> Ohio



Its not so bad when everbody has to do it I guess. You aren't "the bad guy". Do you do much work for cash or did I just offend you?


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## jmcguiretree (Jan 27, 2008)

My CPA told me that I need to collect sales tax for the great state of NY.


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## LTREES (Jan 27, 2008)

Pa. , we do not pay sales tax on tree work. a mechanic doesn't pay sales tax on labor either (services), just on the parts and sales.:greenchainsaw:


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## ATH (Jan 27, 2008)

treemandan said:


> Its not so bad when everbody has to do it I guess. You aren't "the bad guy". Do you do much work for cash or did I just offend you?


Yeah...everybody _should_ be charging sales tax.

As for working for "cash": If somebody pays me before I send a bill and just pays the cash price, I'll usually put it in my books as they payed me tax... For example if my service was $100, the billed amount should be $106 (assuming I was in a 6% tax county). If they send me $100, I'll record it as the service cost $94.34 plus 6% tax to bring the total charge to $100 with tax. I try to avoid this, but a few slip through.

It is not worth it to me to try to cheat the tax man for a few bucks. I also don't want clients to feel like I am trying to squeeze the last dollar out of them (this happens more often with friends-most standard clients pay me when they get the bill).

PS: no need to be offended at a question like that


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## treemandan (Jan 28, 2008)

ATH said:


> Yeah...everybody _should_ be charging sales tax.
> 
> As for working for "cash": If somebody pays me before I send a bill and just pays the cash price, I'll usually put it in my books as they payed me tax... For example if my service was $100, the billed amount should be $106 (assuming I was in a 6% tax county). If they send me $100, I'll record it as the service cost $94.34 plus 6% tax to bring the total charge to $100 with tax. I try to avoid this, but a few slip through.
> 
> ...



If we weren't talking nickles would you still do that?


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## treemandan (Jan 28, 2008)

TreeCo said:


> I know I sure do.
> 
> Anything else is a crime called tax evasion.
> 
> ...



Hell no, I pay out of respect. 

Your right , your right, your right. My cash question is to prove a point but I'm not wrong. And not beat ole' mastermind's drum again but he was just a little ignorant( I suppose) and not the ass he was made. Either that or it was just a joke like JJ.


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## treemandan (Jan 28, 2008)

TreeCo said:


> I know I sure do.
> 
> Anything else is a crime called tax evasion.
> 
> ...



Actually what was being described was ath was putting out of his pocket for the taxes. I was asking how nice would ath get before he got his money.


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## ATH (Jan 28, 2008)

treemandan said:


> Actually what was being described was ath was putting out of his pocket for the taxes. I was asking how nice would ath get before he got his money.



Yes, I was saying I pay somebody else's sales tax out of my pocket (essentialy lowering my profit margin by 6%-7% depending on the county I'm in).

No, I would not do that on larger jobs. I think most people understand that this has to be part of the cost (even as they dislike it as much as I do). I could just include it in the original bid, but I want to make sure they recognize that portion of the cost has nothing to do with me - it is our government taking their money...


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## treemandan (Jan 28, 2008)

ATH said:


> Yes, I was saying I pay somebody else's sales tax out of my pocket (essentialy lowering my profit margin by 6%-7% depending on the county I'm in).
> 
> No, I would not do that on larger jobs. I think most people understand that this has to be part of the cost (even as they dislike it as much as I do). I could just include it in the original bid, but I want to make sure they recognize that portion of the cost has nothing to do with me - it is our government taking their money...



I would immediatly start using a estimate sheet with SALES TAX + 6% on a line on the bottom. In the event you want to be generous it will be in plain view. In the event you don't... Wait! It varies from county to county? Now I am going to eat that bullet.


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