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Tax on rock salt? Do you pay it?

Discussion in 'Ice Management' started by JeffNY, Oct 30, 2008.

  1. JeffNY

    JeffNY Senior Member
    Messages: 484

    I always thought you could be tax exempt on something if your turning around and selling it to the consumer?
    Every place I call for rocksalt says 'PLUS TAX'

    One said no tax if I bring them a tax exempt form. Can I get one of those?

    I did a search, but couldn't really find anything that stood out.

  2. clark lawn

    clark lawn PlowSite.com Addict
    from NE ohio
    Messages: 1,233

    i dont know how NY works but here you have to have a vendors lisence and that also where you get your tax exempt info from.
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

  4. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    Well if NY is the same as PA then you need to be a LEGIT. company with a EIN number. We just bought some salt and I had to give the company my paperwork with it on there, otherwise too bad I guess.
  5. JeffNY

    JeffNY Senior Member
    Messages: 484

    yeah, I have all that good stuff. I have a feeling places won't take a tax exempt form because somehow more is getting in their pocket. worth a shot though.
  6. JeffNY

    JeffNY Senior Member
    Messages: 484

  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I have it set up at my nursery for all my landscape supplies.
  8. digit

    digit Member
    Messages: 94

    If you provide them with a resale certificate then you charge your customers and sent it to the state. I believe the resale cert. can be found on ny state web site.
  9. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,912

    if you buy something and dont pay sales tax on it by being exempt you have to collect 6% or whatever by state you sell it for or whatever from your customer and pay it to the government. if you dont it is called a use tax and YOU have to pay it out of your pocket anyways for the amount you purchased it for.

    the government gets their money no matter what. just pay it up front and dont sell a material to your customer just a service and that is how you get around it.
  10. TCLA

    TCLA 2000 Club Member
    Messages: 2,707

    If you're not tax exempt, you pay the tax. :realmad:
  11. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,912

    and charge your customer accordingly!

    6% =Michigan sales tax

    if you buy a good for $1.00 and get charged for sales tax from the purchaser just collect $1.06 from your customer.

    the only problem with that(from what i understand) is that you might end up paying income tax on the %6 sales tax at the end of the year. if you dont have a good tax guy that is.

    if you are exempt and do not pay up front at the purchaser then you have to collect an extra 6% from your customer than pay it to the government for that product you are selling.

    sales tax exempt is mainly for when you mark up a product. sometimes you can get in trouble with the tax man if you do not seperate your materials if you just include them in your service charge.

    sorry guys thats all i can type for now im running out of time tonight. if you do not know these details already you really really need to pick up a book on business taxes and law.
  12. tuney443

    tuney443 PlowSite.com Addict
    Messages: 1,847

    I called NY sales tax a few years on this.The thing is,if I remember the explanation correctly, is that when you sand/salt a driveway or lot,what you are basically doing is providing a service.All services are taxable--unless the contractor gets an exemption form.The sand or salt therefore,when you come with your sander to get loaded is taxable--no resale certs.apply,BUT--if you come with a dump truck{without a sander},if you qualify,a resale cert.can be used.Of course it's been my experience with those tax boys and girls in Albany that you hardly ever get the same answer from 2 different people.Any contractor who works in NY{and I'm sure many other states} is basically a revenue collector for the privilege:confused:of working in the Empire state.
  13. JeffNY

    JeffNY Senior Member
    Messages: 484

    So, if I charge someone $30 for a lawn, am I supposed to be charging tax on that? or is it "included"?
    I've heard some do, some don't
  14. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,912

    in new york i believe they have a service tax also, so yes technically you should be "collecting" tax for the services and for whatever you sell. if you dont collect it then you end up just paying it out of your pocket at the end of the year.

    how long have you been in business? usally if they know you made money last year they will send you info on paying quarterly or whatever so you dont have to pay it all at once plus a fee at the end of the year.
  15. tjlands

    tjlands Senior Member
    Messages: 579

    In good ol NJ we pay sales tax when we buy it, and collect it from the customer when we apply it.
  16. ford6.9

    ford6.9 Senior Member
    Messages: 452

    The way it works in NY is sales tax goes onto any service that is maintenance of property, Landscaping such as patios driveways heck even new roofs, anything thats a capital improvement does not have tax. When you do a landscaping that is a capital improvement then you have to have the customer sign a form.....I don't have the form number off the top of my head ill pull it out of my desk tonight so you guys can have it when needed. Tax should be charged on top of the cost of the services and in order to do it the proper way you need to have a sales tax ID with the state "certificate of authority"

    So when you buy your salt you according to how i do with mulch provide the location your buying from with your tax ID number and they can then sell to you without tax. The only way you can swing that is if your charging per yard of salt and then separately charging for the service. They must be shown as separate items on the invoice.
  17. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,256

    What he said.
  18. tuney443

    tuney443 PlowSite.com Addict
    Messages: 1,847

    That's up to you,but if you're collecting sales tax, you need to register with the state for your authorization and you have to file either quarterly or annually and pony up.If you want $30 to cut that lawn,tack on your tax rate and show that on your invoice. $30 lawn cut,5% sales tax is $1.50--total--$31.50
  19. tuney443

    tuney443 PlowSite.com Addict
    Messages: 1,847

    It's form #ST-124,you can download them from the NY Sales tax site--very simple to use.I want to point out though that there are 3 criteria for being able to claim a job as a capital improvement.They are: as an addition or alteration to real property that: 1.substantially adds to the value of the real property-2.becomes part of the real property and 3.is intended to become a permanent installation. So basically,when Mrs.Smith is filling out that form where it asks to describe the capital improvement to be performed,you want to have her write ''new'',whatever it is you're doing,because repairs don't fall under a capital improvement.Repairs,no matter what it is,are taxable,unless you get some kind of exemption form,such as for a religious organization.
  20. JeffNY

    JeffNY Senior Member
    Messages: 484

    Less than a year officially.