# MI sales tax



## Ground Cover (Aug 14, 2011)

is snowplowing subject to collecting sales tax in the state of michigan?


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## doo-man (Feb 22, 2009)

No, but you should already know this !


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## H&HPropertyMait (Oct 17, 2011)

Negative .


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## Ground Cover (Aug 14, 2011)

that was the understanding i had with my tax accountant and then i over heard another contractor talking about collecting sales tax. made me a little nervous. my tax guy wont me around till tuesday and i didnt want to stew on it that long. Thanks for the replies


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## terrapro (Oct 21, 2006)

No service tax here in Michigan. They have tried their hardest but we have not let them, they wanted to tax gumball machines but exempt golf lessons...hmmm wtf?! It is a strange feeling having the budget balanced for the next TWO years and not being threatened with a Gov shutdown every month. And to think they wanted Jenny from the block to be President?!


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## Hunter9 (Jul 7, 2006)

Were they billing the salt separate from the application of it or something? If so the salt would be taxable.


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## Ground Cover (Aug 14, 2011)

im not sure. when i do my billings i do the salt a a pre determined apllication charge Example $125 per application december i had 2 salting events so the customers bill was $250 i pay the sales tax on the salt when i purchased it earlier on.


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## Hunter9 (Jul 7, 2006)

Ground Cover;1402336 said:


> im not sure. when i do my billings i do the salt a a pre determined apllication charge Example $125 per application december i had 2 salting events so the customers bill was $250 i pay the sales tax on the salt when i purchased it earlier on.


Then it is "included" with a service and should not be taxable, although then you 
might be liable for paying tax when you buy it then.
Under normal circumstances the "end user" must pay the tax on an item. I know there is some industrial processing exemptions but that would be beyond my expertise, I would certainly discuss with your accountant.


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## kg26 (Feb 5, 2013)

No, No COGS no sales tax.


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## scott3430 (Dec 28, 2010)

In WI I charge sales tax on most of my summer services - mowing, installs, hedge trimming, ect.

But not on snow work. Tax laws are strange...?


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