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Is there sales tax on salt and salting services?

Discussion in 'Business Fundamentals' started by CK82, Dec 18, 2007.

  1. CK82

    CK82 Senior Member
    Messages: 189

    I would assume since I the provider has to pay sales tax on the product that it is the same when invoiced to the customer?! If so does the entire salting service include sales tax? I have in the past not charged sales tax for either snow removal or salting.
  2. MBB

    MBB Senior Member
    Messages: 129

    In Wisconsin you pay sales tax when you buy the salt but can not charge tax when you spread it out on a customers place. If they were to come to you and buy a 50 lbs bag then you would charge tax. I know it does not make any sense but then what does. This straight from the sales tax division unless something changed from last season to this. By the way snowplowing is not taxable either as far as state sales tax is concerned. Goes under exempt or other on sales tax reporting form.
  3. CK82

    CK82 Senior Member
    Messages: 189

    Yea I understand the snow removal without sales tax, but to not be able to tax the customer on salt that we paid sales tax on is riduculous. Thanks for your information!
  4. this maybe a little off topic but here it is I'm 16 years old and starting to learn the ropes of plowing and such but where and how do i learn the business aspects of the work like taxes, pay roll, booking and what ever else goes with running a business like insurance
  5. powerjoke

    powerjoke PlowSite.com Addict
    Messages: 1,341

    yes you pay tax when you buy unless you have a tax ID# and then if you do NO you don'tpay tax.

    if you charge more for salt than you pay you have to have a RETAILER TAX ID# .and denote that on the bill

    if you buy salt and sell it for the same price you give including tax your O.K.

    BUTT REMEMBER LABOR OF ANY SORT IS NON-TAXABLE it don't matter if your getting your car worked on or spreading salt;)................NO EXCEPTION'S

    these are federal laws NOT state by state
  6. tjlands

    tjlands Senior Member
    Messages: 579

    Snow plowing, Ice control, or anything labor or materials is subject to 7% sales tax in NJ.
    The only exceptions is an exempt org. like a church or a non-profit. It is not Federal is is regulated state by state.

    PowerJoke you are 100% wrong.
  7. tjlands

    tjlands Senior Member
    Messages: 579

    Sorry Power this is correct , but why sell it for the same price? We do want to make money on it, dont we?
  8. DP Property

    DP Property Senior Member
    Messages: 158

    Hi Guys

    In Ontario we charge GST on any service provided. The sales tax you are not allowed to charge the customer because it is an application not a direct sale. But you have to recover the cost that you paid in the PST (sales tax) by adding it on to the cost of salt you are charging your customer. It is a tax you don't let your customer see but you need to recover it and make some money also.
  9. CK82

    CK82 Senior Member
    Messages: 189

    From my understanding, at least here in WI, sales tax is charged regardless on most of mylandscaping and lawn maintenance, with a few exceptions. Snow removal and ice control on the other hand is not taxed. Yes we do need to recover the sales tax paid on the salt material used, so figuring it in the estimate or final price has to be done, whether the customer can see it or not. I just think it makes things more difficult and makes costs of applying salt look higher when we have to figure in the so called hidden sales tax that we are trying to recoupe.