# Charging sales tax



## CITREEMAN

Just wondering if any of you charge your state sales tax on top of the job price or do you you include that in the price - Example John Doe has you bid tree removal and your bid is say $800.00 - Is this your price including tax or due you charge the tax to the $800.00 ?


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## skwerl

About 20 years ago Florida tried implementing a sales tax on services. It lasted about a year and was repealed. There is no sales tax on services in this state now, only merchandise. 

So no, I've never charged sales tax since it would be illegal for me to do so.


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## Newfie

In Mass, services are not subject to sales tax so I don't charge it. If I had to I would show it as a separate line item to the total bid. If the job costs you $800 to make a profit, then charge that and then charge the sales tax on top of that. Why reduce YOUR profit by paying the customers sales tax?


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## CITREEMAN

Ya thanks guys i it does very from state to state on weather or not sales tax applies to services Here in Iowa you are supposed to charge sales tax on residentual services not commercial. Had a customer squack a bit when i charged the tax after the job. And yes it DOES cut into your profit if you dont do it that way. Just wanted to get your guys opinion. Thanks again.


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## Newfie

Just make sure your bid reflects the sales tax up front and then they won't get that surprise.


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## skwerl

Yes, I would add it on as a line item on top of the total bid. But I'd also make sure the customer was aware of it before starting the work. Nothing like starting a job under false asumptions and then dealing with an irate customer afterwards. 

20 years ago I added the sales tax on top of my monthly lawn service charges. When it was repealed I stopped charging it. I used to make out my monthly check to 'Infernal Revenooers Society' (can you tell I've always had a thing for big government sticking it's nose into my business?).


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## BlueRidgeMark

skwerl said:


> Yes, I would add it on as a line item on top of the total bid. But I'd also make sure the customer was aware of it before starting the work.




This homeowner votes a big YES for this method. Surprises are not nice when they come in a bill. Tell me up front and I'll be upset with the politicians, not you.


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## tophopper

In Minnesota, _most_ work performed by a tree service is taxable by 6.5% and by 7.0% within the Twin Cities.

On my proposals there is a sub total line, sales tax line, and grand total line.

Its sort of a pain to deal with cuz you could write 10 line items and the customer will approve 3 of them, hence affecting the tax amount.

When we schedule work we usually discuss payment options and we remind them of the sales taxes so they are not suprised.

On a small 100. dollar job an additional $6.50 is usually not a problem,
but when you finish a 3500.00 dollar job and your invoice reflects 227.50 additional in taxes, most clients like to be aware of this ahead of time. So we do our best to inform them.



What really sucks, is trying to dtermine whats taxable and what is not......

tree pruning= fully taxable
tree removal=fully taxable
stump removal= fully taxable
tree planting=only taxed on whoesale costs
landscape mgmt= not taxable

so if you manage a landscape, prune a few trees, remove a tree, maybe deadhead a few perennials (no tax), and plant a tree. you need to determine if each item is taxable.

another loophole..... if the client is making home improvements to their property, tree work is not taxable  

So in one case you prune a tree and its fully taxable, 
in another you prune the same tree and because the tree is being elevated over the house to allow for an addition to be put on the house, it is not taxable.  


Tell me that dont give you a headache


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## redprospector

tophopper said:


> In Minnesota, _most_ work performed by a tree service is taxable by 6.5% and by 7.0% within the Twin Cities.
> 
> What really sucks, is trying to dtermine whats taxable and what is not......
> 
> tree pruning= fully taxable
> tree removal=fully taxable
> stump removal= fully taxable
> tree planting=only taxed on whoesale costs
> landscape mgmt= not taxable
> 
> so if you manage a landscape, prune a few trees, remove a tree, maybe deadhead a few perennials (no tax), and plant a tree. you need to determine if each item is taxable.
> 
> another loophole..... if the client is making home improvements to their property, tree work is not taxable
> 
> So in one case you prune a tree and its fully taxable,
> in another you prune the same tree and because the tree is being elevated over the house to allow for an addition to be put on the house, it is not taxable.
> 
> Tell me that dont give you a headache




Wow, I thought we had it bad in New Mexico. If you fart here it's taxable,
but at least we know where we stand.
I always charge sales tax on top of the quote, but make it clear to the customer that they will be paying sales tax on top of the quote.
I think I'm going to try charging the state a collection fee, for collecting money and keeping records for them.

Andy


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## Newfie

And they call us Taxachusetts?:monkey:


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## Bearded1duh

*Volunteer to be my slave!*

I learned about 30 years ago that participating in the the following tax schemes is voluntary and I have not volunteered since. 
State income tax
State sales tax (learned about ten years ago)
IRS taxes, Social Security (AKA Feredal Old Age Pension Act)
Nursery registration program.
Pesticide applicator licensing program.
Medicare payments
State Unemployment Program. All government subsidized, subscribed and promoted programs. Government serves the people and it (the administrators of "Government") has turned the tables on the people. We've been duped.
An unbelievable scheme was set inmotion many years ago which lead free Americans to volunteer into serviture of the so-called government. It could not be done forcefully since that would be in violation of the 13th amendment prohibition of involuntary servitude. Voluntary, however, servitude is unregulated, live and well. Voluntary servitude, in its most mild form is found in one man lending the other a helping hand without compensation (and compensation is anything of value, not just money).
Voluntary servitude in an uglier form is a man being duped into thinking he is volunteering to the service of his copuntry when, actually, he is sent to put his life on the line for the benefit of the United Nations and private monetary interests of so-called "World leaders". The voluntary participation on the various tax schemes and social reformation agendas is the greatest enemy of a free society which ultimately leads to its giving away all that it holds dear, that being property. liberty and life. 
I, for one, refuse to voluntarily part with a large portion of my productive life in support of the miscreants and their squanderings and meddlings concealed in the name of good governance. 
Those interested in learning, and there is much to learn. can request educational links and I will provide them. 
Keep in mind that undertaking to preserve and exercise your rights can be as time consuming and sometimes expensive as volunteering to be their slave.
It is your choice whether you will labor toward slavery or freedom. 
1Duh


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## Newfie

Well, since you seem to be so put out by participating in society, take your juvenile attitude and crawl back inside you self serving cave of denial.


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## cphily21

any one know about pa


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## Bearded1duh

For Newfie, Thanks for the mud slinging. I'll continue to watch the thread in the event you have something intelligent and substantive to add. I feel certain that you can do better than an unsubstantiated, barstool bark.
I follow the law, care to learn any of it?

For cphily21, If you are looking volunteer to become a non-compensated revenue collector for Pennsylvania's sales tax coffers, a phone call to the the commonwealth's department of treasury will usually net you more help than you can imagine. I suspect their phone number is published in the local phone book.

1duh


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## alanarbor

cphily21 said:


> any one know about pa



In PA, Pesticide applications are taxable, Fertilization is not, nor are pruning and removal services, to the best of my knowledge.


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## Newfie

Bearded1duh said:


> For Newfie, Thanks for the mud slinging. I'll continue to watch the thread in the event you have something intelligent and substantive to add. I feel certain that you can do better than an unsubstantiated, barstool bark.
> I follow the law, care to learn any of it?
> 1duh



I think my previous posts to the thread were direct and to the point.

You decided to bring along the paranoid baggage of servitude and new world order conspiracy theorist BS.


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## jp hallman

We ain't got no stinkin' sales tax on nothin'!


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## oldugly

tophopper said:


> In Minnesota, _most_ work performed by a tree service is taxable by 6.5% and by 7.0% within the Twin Cities.
> 
> On my proposals there is a sub total line, sales tax line, and grand total line.
> 
> Its sort of a pain to deal with cuz you could write 10 line items and the customer will approve 3 of them, hence affecting the tax amount.
> 
> When we schedule work we usually discuss payment options and we remind them of the sales taxes so they are not suprised.
> 
> On a small 100. dollar job an additional $6.50 is usually not a problem,
> but when you finish a 3500.00 dollar job and your invoice reflects 227.50 additional in taxes, most clients like to be aware of this ahead of time. So we do our best to inform them.
> 
> 
> 
> What really sucks, is trying to dtermine whats taxable and what is not......
> 
> tree pruning= fully taxable
> tree removal=fully taxable
> stump removal= fully taxable
> tree planting=only taxed on whoesale costs
> landscape mgmt= not taxable
> 
> so if you manage a landscape, prune a few trees, remove a tree, maybe deadhead a few perennials (no tax), and plant a tree. you need to determine if each item is taxable.
> 
> another loophole..... if the client is making home improvements to their property, tree work is not taxable
> 
> So in one case you prune a tree and its fully taxable,
> in another you prune the same tree and because the tree is being elevated over the house to allow for an addition to be put on the house, it is not taxable.
> 
> 
> Tell me that dont give you a headache




Hey Tophopper,
Where did you get your information? I am from Minnesota, (Lovingly known as the state of beautiful confusion) and need to get my ducks in a row on the tax issues. 

I am subbing for a large contract at this time, and need to know if sales tax appies to cooperatives, line maintenance work, etc. I've asked a dozen people and gotten a dozen different answers, (which is even more confusing when its a simple yes or no question).

Beuracracies...I love em. (I just can't spell em)


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## oldugly

*Bearded1duh*

You take a brave stand to defend the morals which you hold dear, but understand that there are many who have taken very brave stands to give you the right to speak freely of those morals, and values. Those people who have given their all, (howbeit whether you value their sacrifice or not) were not doing so to benefit any corporation to their knowledge, but because they thought it was the right thing to do.
Thomas Payne, one of the greatest patriarchs, and overall designer of the present form of government we hold dear today, spoke very weighty of the neccesity of people supporting financially the government, the military, and the benefits they receive from such institutions. 
As far as dismissing what I say as another "unelightened" commentor, you are right. I am uneducated, unrefined, and a little old fashioned. But I pay my dues, and reap the benefits of a nation that I love and respect very much. In my humble opinion, (uneducated and unrefined as it may be) if you don't want to drive on the roads..don't pay fuel tax,..if you don't want police protection, then don't pay propert tax..sales tax...or whatever they draw from, if you feel you can stand alone as a separate entity against all nations, void of political obligations, void of political ties, void of country...then by all means continue your speal...support only yourself..(and your values)..but do not ask for the benefits of a society which you will not support. For by doing so you make yourself a hypocrite...and a thief.


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## tophopper

oldugly said:


> Hey Tophopper,
> Where did you get your information? I am from Minnesota, (Lovingly known as the state of beautiful confusion) and need to get my ducks in a row on the tax issues.
> 
> I am subbing for a large contract at this time, and need to know if sales tax appies to cooperatives, line maintenance work, etc. I've asked a dozen people and gotten a dozen different answers, (which is even more confusing when its a simple yes or no question).
> 
> Beuracracies...I love em. (I just can't spell em)






As far as I know, even subbing, you should be collecting and paying sales tax...

check out the following pdf from the MN Dept of Rev.

http://taxes.state.mn.us/taxes/sales/publications/fact_sheets_by_name/content/BAT_1100109.pdf


you can see by looking at the form, that there are no simple yes and no answers------only confusion by many. 

I wish they'd just do away with it personally, I really hate having to collect their money and report it to them every month.


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## tophopper

oldugly said:


> You take a brave stand to defend the morals which you hold dear, but understand that there are many who have taken very brave stands to give you the right to speak freely of those morals, and values. Those people who have given their all, (howbeit whether you value their sacrifice or not) were not doing so to benefit any corporation to their knowledge, but because they thought it was the right thing to do.
> Thomas Payne, one of the greatest patriarchs, and overall designer of the present form of government we hold dear today, spoke very weighty of the neccesity of people supporting financially the government, the military, and the benefits they receive from such institutions.
> As far as dismissing what I say as another "unelightened" commentor, you are right. I am uneducated, unrefined, and a little old fashioned. But I pay my dues, and reap the benefits of a nation that I love and respect very much. In my humble opinion, (uneducated and unrefined as it may be) if you don't want to drive on the roads..don't pay fuel tax,..if you don't want police protection, then don't pay propert tax..sales tax...or whatever they draw from, if you feel you can stand alone as a separate entity against all nations, void of political obligations, void of political ties, void of country...then by all means continue your speal...support only yourself..(and your values)..but do not ask for the benefits of a society which you will not support. For by doing so you make yourself a hypocrite...and a thief.





Very well said!!


even for an uneducated and unrefined tree man.


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## Koa Man

In Hawaii, it is very simple due to the intelligence of our politicians. You simply add a 4% general excise tax to everything. Food, rent, medical care, all types of services, you name it. In fact, you pay 4% tax on the tax. Yes, that is right. If you sell something for $100 here, you collect $100 plus $4 for the GE tax. When you as the business owner remit the tax to the state, you don't send them only $4. You need to send them $4.16, because after all, you did collect $104 from your customer.


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## oldugly

*Thanks, top*

Hey top,
Thanks for the information, now I can see what I need to do, and what I need to get ready to collect. Good luck with your company.

Red


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## Oly's Stump

In Wisconsin Tree Services must collect sales tax. Removal, trimming, stump grinding are all taxable services. Exceptions are vacant lots and sub-contracting. Vacant lots with no home is not a home improvement so they are exempt. Sub-Contractors are exempt: If I for example are contracted by a tree firm or general contractor without a stump grinder to grind stumps, he collects the entire tax from the cutomer.


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## jmack

*agree*



Newfie said:


> In Mass, services are not subject to sales tax so I don't charge it. If I had to I would show it as a separate line item to the total bid. If the job costs you $800 to make a profit, then charge that and then charge the sales tax on top of that. Why reduce YOUR profit by paying the customers sales tax?


well said newfie, i like to show it, as a line item when da homeowners complain about prices i inform them that we are not cheap like plumbers more like orthodontists, anyone have people refuse the tax, igot a lady ive been stalling who says she dont pay tax for service not that shes on the wonder plan as stated earlier, she just dont think she should, btw big estate future work possibilties suggestions? tanks


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## jmack

:monkey:


cphily21 said:


> any one know about pa


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## vharrison2

skwerl said:


> About 20 years ago Florida tried implementing a sales tax on services. It lasted about a year and was repealed. There is no sales tax on services in this state now, only merchandise.
> 
> So no, I've never charged sales tax since it would be illegal for me to do so.



Skwerl, I remember when that happened, we had a landscaping company in Orlando at the time. PITA and a stupid tax! Glad they repealed it.


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## ozy365

*Dredging up a post*

I tried serching first and this was the closest thread I could find. Anybody charging sales tax in NY (outside of the City)? Every reg I have read is not clear, my tax guy says"Gee, I don't know" and fines are threatened for even looking like you screwed up. :bang:


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## Yellowdog

CITREEMAN said:


> Just wondering if any of you charge your state sales tax on top of the job price or do you you include that in the price - Example John Doe has you bid tree removal and your bid is say $800.00 - Is this your price including tax or due you charge the tax to the $800.00 ?



We do for tree work outside of land clearing. Tree work falls under landscaping in Texas tax code and is a taxable service, whereas land clearing is a real property service or so I am led to believe..


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