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Sales tax?

Discussion in 'Introduce Yourself to the Community' started by beanz27, Feb 19, 2013.

  1. beanz27

    beanz27 Senior Member
    Messages: 984

    Ok, so being only in the ag industry my whole life, I haven't had to deal with sales tax or anything. So here is the dumb question that I'm sure is yes.

    Do I charge sales tax on plowing a driveway, or commercial lot?
     
  2. bluerage94

    bluerage94 Senior Member
    Messages: 398

    In NYS we do...Its a service.
     
  3. CAT 245ME

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

    I charge it as well.
     
  4. mpriester

    mpriester Senior Member
    Messages: 404

    Check with your state. Not all states charge sales tax on plowing.
     
  5. Spool it up

    Spool it up Senior Member
    Messages: 912

    if you pay taxes . add at least 15% .
     
  6. Spool it up

    Spool it up Senior Member
    Messages: 912

    so clue me in , how do you avoid being taxed ? Im all ears .
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Sales tax id different then other taxes. You don't pay them you collect them for the state.Why would you add 15%?
     
  8. Kwing1120

    Kwing1120 Member
    Messages: 39

    in Some places you only charge sales tax on goods you sell someone not labor.
     
  9. Spool it up

    Spool it up Senior Member
    Messages: 912

    FEDERAL taxes your 1099's approx 15% .
     
  10. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    You will have to look it up with your state dept of revenue.
    In WI snowplowing is not a taxable item, but grass mowing is. Dumb rules. All the states are different . I downloaded a WI code book on line and have looked this up. Thumbs Up
     
  11. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,552

    A 1099 is NOT sales tax

    In MA you charge a sales tax on salt, sand. You collect it and give it to the state. jail time for collecting sales tax and not giving it to the state. no tax on services (labor)
     
  12. Spool it up

    Spool it up Senior Member
    Messages: 912

    original post says sales tax OR ANYTHING . my bad
     
  13. mpriester

    mpriester Senior Member
    Messages: 404

    i'm not avoiding being taxed. i pay taxes just like anyone else.key word here is sales tax we all pay income tax or atleast we should be. in the state of pa you don't pay sales tax on plowing snow but you do pay sales tax on salt as well as mowing, its a screwed up law but what else is new.
     
  14. Spool it up

    Spool it up Senior Member
    Messages: 912

    you payFEDERAL tax on a labor or a service you were compensated for , correct ? that be approx 15% . correct .
    or is it just me . not talking write offs yet .
     
  15. JB1

    JB1 Senior Member
    Messages: 178


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    Last edited: Feb 20, 2013
  16. Spool it up

    Spool it up Senior Member
    Messages: 912

    this is where people get confused .
    if someone you service writes you a check , gets audited or your selling massive amounts of salt to them for a profit, Uncle Sam wants to also know who is "applying" it .

    this isn't my first rodeo boys .

    now ,what to tell the IRS ?


    im not talking shoveling walks and plowing mom moms driveway , talking a real legit business here.
     
  17. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    100.00 sub total
    8.75% sales tax
    8.75 to state for sales tax
    your cost for product 50 bucks
    your "soft tax"is based on the 50 bucks,not the 108.75
     
  18. Spool it up

    Spool it up Senior Member
    Messages: 912

    ok . NOW, who plowed & spreaded the taxed salt ? You , the customer or Ben Franklin?
     
  19. theholycow

    theholycow PlowSite.com Addict
    Messages: 1,180

    I believe the keyword that is missing here is "income". You're talking about income tax. One does not normally add income tax onto the invoice. It is assumed to be part of the cost of doing business and the price before additional charges should include it.
     
  20. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Your company did the work. You billed them 100 buck plus 8.75% sales tax. you send in quarterly sales tax to the state .Then do your books the normal way.

    In Ny ,you can buy salt with a resale cert, so no tax at the whole sale level only on the retail level. So labor and material is taxed.
     
    Last edited: Feb 20, 2013