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Sales tax on snow plowing?

Discussion in 'Commercial Snow Removal' started by bison1973, Nov 5, 2002.

  1. bison1973

    bison1973 Member
    Messages: 69

    I live in Wisconsin and I was wondering if you should legally charge sales tax on snowplowing jobs? Info from anyone in any state is greatly appreciated. It is snowing as I type this message! Thanks.
     
  2. seville009

    seville009 Senior Member
    from CNY
    Messages: 733

    Snow plowing is subject to sales tax in New York State, unless, of course, the customer is a non-profit entity (like a church) and they give you a form showing their exemption.

    Under NYS law, you cannot just say that "sales tax is included"; you must show it separately on your invoice.
     
  3. CT18fireman

    CT18fireman Banned
    Messages: 2,133

    My accountant told me to specifically identify sales tax on my invoices and to charge all customers unless they are tax exempt.

    Of course if someone flags you down and asks you to plow for cash on the spot I think you will be ok.
     
  4. Lawn Lad

    Lawn Lad Senior Member
    Messages: 407

    Dont' know about Wiss. but in Ohio snow plowing is considered a construction contract and therefore does not need to be taxed.
     
  5. John Allin

    John Allin PlowSite.com Addict
    Messages: 1,327

    Snowplowing and deicing are not taxable services in PA either.
     
  6. Randy Scott

    Randy Scott Senior Member
    Messages: 142

    bison,

    I live in Germantown, WI (near Milwaukee). Snowplowing is NOT a taxable service in Wisconsin. NOT!
    However salting IS taxable.

    Here is some info for you to check into. Phone number for Dept. of Revenue (608) 266-2776.
    Website address www.dor.state.wi.us. Check this stuff out and have them send you a pamphlet with the snow services information. It's actually on the "Sales and use tax treatment of landscaping" brochure.
     
  7. J.Henderson

    J.Henderson Senior Member
    Messages: 164

    In Illinois, a service is not taxable, however across the river from me in Iowa(just 1 mile away) a service is taxable. Thus I willnot plow in Iowa with contracts in my name. I will only subcontract for another plower who will pay me. That way I won't have to report tax in Iowa.
     
  8. slplow

    slplow PlowSite.com Veteran
    Messages: 594

    There is no tax on snow plowing services or deicing here either. However, if I sell a bag of salt, I would have to charge a MA sales tax.

    Materials tax, services none.
     
  9. CMerLand

    CMerLand Senior Member
    Messages: 173

    Here in New Jersey, they charge sales tax you for everything you do regarding snow removal. Hell if our state government doesnt get its finacials in order then theyll start taxing breathing.
     
  10. John Allin

    John Allin PlowSite.com Addict
    Messages: 1,327

    Hold your breath !!!
    Hold your breath !!!
     
  11. Pelican

    Pelican 2000 Club Member
    Messages: 2,075

    Let's get this straight, you're not charging anyone sales tax, you're collecting it for the greedy SOBs at your State Capitol. Explain this to your customers when you catch hell over it.

    Yes, NY regards snowplowing as a taxable service, as well as just about everything else we do here!
     
  12. i_dont_plow

    i_dont_plow Junior Member
    from midwest
    Messages: 1

    I understand that I am digging up an ancient thread, however, while researching sales and use tax regulations for snow plowing for WI (I'm an accountant), this is one of the top results. If I am able to save a few people some time by addressing the question then I feel that would be acceptable.

    Short answer: No. Sales tax is not applicable to snow removal services in WI. http://www.revenue.wi.gov/taxpro/news/101108a.html

    To add a couple of helpful tips to make sales tax easier, here are some quick bits of information. In some states (Iowa, for example) plowing snow is not taxable, however, the cost of salt and/or sand is - but only if separately itemized on the bill. This means you can make your life (or your accountant's) easier by not listing salt or sand on your invoices.

    Again, I apologize for digging up such an ancient thread, but I felt that with such a high result in google that I would like to post this information here for people like me, while at the same time helping our this forum. If there are any other tax related questions regarding plowing snow, I'd be happy to address them.

    Disclaimer: I am a random guy on the internet. This is not legal advice. Do not try to use anything I say in court, I won't be there to back you up. I will, however, try to provide the source of my information so that you can use that in case you are ever audited.
     
  13. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,847

    good update on WI tax law.
     
  14. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,880

    I've always charged it unless they're a "tax exempt entity" that is not required to do so, provided they give me the proper tax exemption forms.

    http://www.state.nj.us/treasury/taxation/su_1.shtml

    What is a tax exempt entity ? Churches, Cemetery, Governor Christie's Stomach surgery, Volunteer operations, Food banks, etc.
     
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Cash?:DThumbs Up
     
  16. CAT 245ME

    CAT 245ME PlowSite.com Addict
    Messages: 1,032

    Unfortunately cash is starting to become a thing of the past, it's almost always cheque, debit or credit card.:(
     
  17. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I'm sure there are a few people up there with some strawberries in the pocket.
     
  18. R75419

    R75419 Senior Member
    Messages: 135

    I know that snowplowing is a taxable service here in Ohio (within the last few years). You have to make sure you collect the correct rate according to what county/municipality you are in so you dont receive a nasty letter from the state.:nono:
     
  19. leigh

    leigh PlowSite.com Addict
    from CT
    Messages: 1,987

    6.35% here in ct. Wish I got paid to be a tax collector!
     
  20. magnum1

    magnum1 Senior Member
    from ID & ND
    Messages: 249

    I have an inquiry, Sales tax ( as far as I understand ) is charged on product sales not services. If the contractor pays sales tax on a product and uses said product in the course of his business there would be no sales tax charged, That being said if the contractor purchased the product for resale there would be sales tax charged. Sales tax on a service is not charged in at least the 7 states I do buis. in In other words if the states some of you mention do charge saId tax on services I would investigate the legality of charging sales tax on services rendered
     
    Last edited: Sep 19, 2013