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