# Tax Included?



## linckeil (Sep 18, 2007)

If a contract for services (snowplowing, mowing, hardscaping, tree work, etc) exists, and the contract calls out a total price of $20,000, but makes no mention whatsoever of taxes, is it assumed that applicable taxes are included in the $20,000, or is it assumed that taxes will be added to the $20,000? I'd imagine opinions will go both ways and I am interested in hearing them. I am also interested if anyone knows of a legal precedent that exists to suggest what the correct legal answer is?


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## BossPlow2010 (Sep 29, 2010)

It depends on the state, 
In Michigan landscapers are considered contractors so they wouldn’t charge a customer sales tax per se, but it could be included in the cost.


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## Mark Oomkes (Dec 10, 2000)

It shouldn't be assumed.


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## Mr.Markus (Jan 7, 2010)

As a customer the "total" to me defines what i pay. 
It includes the tax that the contractor is obligated to collect for the government on products/services.
Total is defined as total..


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## prezek (Dec 16, 2010)

In maryland, no tax on services.


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## Fourteen Contracting Inc. (Jul 5, 2019)

I would say it depends if the contract is with another business or a homeowner. If it's with another business then it's $20k plus taxes because that business will be refunded the taxes. (In essence, the business will only be paying the $20k for the service)
If it's with a homeowner then 20k is the total with the taxes. Seeing as the homeowner will not be refunded the taxes. (The homeowner would have to pay in excess of 20k if the taxes were applied on 20k)


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## Mark Oomkes (Dec 10, 2000)

Technically, the price should not include tax, but this should be plainly stated somewhere on the estimate/proposal/contract. 

OLM pays sales tax when purchasing materials and builds it into the price. In other words, the price is the price. 

Bella is the tax collector for the state, all materials are taxed when invoiced to the customer. 

As stated, there are no taxes on services in Michigan, only materials. Can't even imagine trying to break down how many ounces of concentrate we used at an account and taxing them for it, or fertilizer.


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## fireball (Jan 9, 2000)

Again, each state is different in how they tax things. And in some states they also tax different localities. Another thing to ponder is a multiple year contract and how you allow for a increase in tax rate or if the taxing authority starts to collect sales tax on services. Or my personal favorite the state changes what they collecting taxes on and makes it retroactive to the first of the year. Mark is right, each page of your contract should state that taxes, fees, and permits are NOT included


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## Mark Oomkes (Dec 10, 2000)

fireball said:


> Again, each state is different in how they tax things. And in some states they also tax different localities. Another thing to ponder is a multiple year contract and how you allow for a increase in tax rate or if the taxing authority starts to collect sales tax on services. Or my personal favorite the state changes what they collecting taxes on and makes it retroactive to the first of the year. Mark is right, each page of your contract should state that taxes, fees, and permits are NOT included


Several years back when Meatchicken was in its one state recession for almost 10 years before the rest of the country caught up...there was talk about a service tax. Dem guv and stupid GOP legislature were trying to balance the budget by increasing taxes.

Anyways, 12 month contracts would be required to collect taxes on plowing, mowing, landscraping, etc. But if you had just a plow contract, no tax would have been collected.

One of the reasons I try to keep my contracts separated.


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## Chineau (Aug 24, 2010)

who wrote the document?
20k contract isn't joe's place ( not amateur hour)


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## cjames808 (Dec 18, 2015)

Always plus tax just like when You buy something. We dont tax snow services here just salt. WI


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## Hydromaster (Jun 11, 2018)

No tax collection for a service,
Salting is a service, as I don’t sell them bulk or bags.

if in a contract any Applicable taxes would be included in my pricing for such.

Ez want my cpa did.said
But you should contact your own. Accountant.


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## Chineau (Aug 24, 2010)

y'all come on back, remember cb radio?
10-4


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## Mark Oomkes (Dec 10, 2000)

Thanks alexa...

Apparently Amazon or whoever sent out Alexa to spy is listening also? 

Question for the mods...allegedly @alexa36 has 3 posts, but if Juan clicks on the 3, only this one shows up?

Anudder ting the developers are working on?


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## cwren2472 (Aug 15, 2014)

Mark Oomkes said:


> Thanks alexa...
> 
> Apparently Amazon or whoever sent out Alexa to spy is listening also?
> 
> ...


It seems that even if posts are deleted, they still show up in the post count. Maybe because they aren't really deleted but only "moved"? The illusive moved thread strikes again....


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## cwren2472 (Aug 15, 2014)

The scariest part is Alexa was way more on topic and helpful than 95% of posters on here... (present company included)

I better go home and suck up to Alexa while there's still time before the computers finally take over.


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## Hydromaster (Jun 11, 2018)

cwren2472 said:


> It seems that even if posts are deleted, they still show up in the post count. Maybe because they aren't really deleted but only "moved"? The illusive moved thread strikes again....


i’ve seen new members who make a post but if you go back and look at their name it says they have two but the board only shows one


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## jonniesmooth (Dec 5, 2008)

Lawn,leaf,and tree work is taxable in MN ,not snow.
In my contracts, monthly options are taxed on top of price.
My seasonal include tax. Makes the seasonal more appealing to the customer.


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## DCTSR (11 mo ago)

Recently was informed by a customer that snow removal services are not taxable in Wisconsin per the Wisconsin DoR... learn something new every day





DOR Landscaping Services and Snow Removal Services


Wisconsin Department of Revenue: Landscaping Services and Snow Removal Services




www.revenue.wi.gov


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## Mr.Markus (Jan 7, 2010)

DCTSR said:


> Recently was informed by a customer that snow removal services are not taxable in Wisconsin per the Wisconsin DoR... learn something new every day
> 
> 
> 
> ...


How much do you owe your customers in refund?


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## DCTSR (11 mo ago)

Mr.Markus said:


> How much do you owe your customers in refund?


It was for a small account that owns 3-4 residential properties and was pointed out after the first snowfall of the first season running a legitimate operation (licensed, insured, etc. instead of basically just a cash operation). It came out to under $50 so I told him I'd just credit him on the next invoice.


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## Mr.Markus (Jan 7, 2010)

Next question.. how much do you claim back from the gov for remitting it.?


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## DCTSR (11 mo ago)

Mr.Markus said:


> Next question.. how much do you claim back from the gov for remitting it.?


That's out of my wheelhouse and what I pay my accountant to figure out.


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