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Tax on Salt for a Seasonal conract ???

Discussion in 'Commercial Snow Removal' started by Sno4U, Nov 6, 2008.

  1. Sno4U

    Sno4U Senior Member
    Messages: 480

    In our State salt is a taxable item but, snowplowing is not. So if I write a seasonal contract, how do I figure for the tax on the salt?:dizzy:
     
  2. ford6.9

    ford6.9 Senior Member
    Messages: 452

    If you are not charging per ton for salt, dont charge for the salt just charge to the service and tax that.
     
  3. ducatirider944

    ducatirider944 Senior Member
    from Iowa
    Messages: 469

    You are paying tax on the salt when you buy it right? You can't buy it tax except and then not charge your client. I don't know about your WI laws but in IA if I pay the tax on a good and then use that good, I don't have to tax the customer, because I am being paid for a service. If you are buying salt with a tax exemption, that is a whole different ball of wax.
     
  4. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,879

    pay the tax when you purchase the salt then do not sell your salt to the customer sell the service. even at that you can be charged 6% or whatever on the entire amount you charged, learned that one the hard way one year with mulch because we exempted our selves from paying sales tax at purchase and never charged the customer sales tax on the materials because we included the cost of materials in the application rate so we got taxed on the entire amount...almost three times the difference :cry: on 125+yds average per year thats alot of extra tax

    to be safe seperate the materials from the service charge and either mark up how you would like and charge sales tax accordingly or dont mark it up and treat it as reimbursible expenses which you should have already payed the needed sales tax on it already during purchase.
     
    Last edited: Nov 6, 2008