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MI sales tax

Discussion in 'Business Fundamentals' started by Ground Cover, Dec 30, 2011.

  1. Ground Cover

    Ground Cover Junior Member
    Messages: 21

    is snowplowing subject to collecting sales tax in the state of michigan?
     
  2. doo-man

    doo-man Senior Member
    Messages: 387

    No, but you should already know this !
     
  3. H&HPropertyMait

    H&HPropertyMait Senior Member
    Messages: 558

  4. Ground Cover

    Ground Cover Junior Member
    Messages: 21

    that was the understanding i had with my tax accountant and then i over heard another contractor talking about collecting sales tax. made me a little nervous. my tax guy wont me around till tuesday and i didnt want to stew on it that long. Thanks for the replies
     
  5. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,879

    No service tax here in Michigan. They have tried their hardest but we have not let them, they wanted to tax gumball machines but exempt golf lessons...hmmm wtf?! It is a strange feeling having the budget balanced for the next TWO years and not being threatened with a Gov shutdown every month. And to think they wanted Jenny from the block to be President?!
     
  6. Hunter9

    Hunter9 Member
    Messages: 64

    Were they billing the salt separate from the application of it or something? If so the salt would be taxable.
     
  7. Ground Cover

    Ground Cover Junior Member
    Messages: 21

    im not sure. when i do my billings i do the salt a a pre determined apllication charge Example $125 per application december i had 2 salting events so the customers bill was $250 i pay the sales tax on the salt when i purchased it earlier on.
     
  8. Hunter9

    Hunter9 Member
    Messages: 64

    Then it is "included" with a service and should not be taxable, although then you
    might be liable for paying tax when you buy it then.
    Under normal circumstances the "end user" must pay the tax on an item. I know there is some industrial processing exemptions but that would be beyond my expertise, I would certainly discuss with your accountant.
     
  9. kg26

    kg26 Senior Member
    Messages: 301

    No, No COGS no sales tax.
     
  10. scott3430

    scott3430 PlowSite.com Addict
    Messages: 1,005

    In WI I charge sales tax on most of my summer services - mowing, installs, hedge trimming, ect.

    But not on snow work. Tax laws are strange...?