# who chardges taxes on invoices?



## the new boss 92 (Nov 29, 2008)

who here puts tax on there plowing invoices and does taxes for snow removel for thoughs who work a partitme or full time job? just curious who does and who doesnt.


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## stevesmowing (Jul 14, 2004)

part time and everything gets declared and sales tax is charged.


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## JMR (Feb 24, 2003)

I take it your talking salestax. That will very by state, as each state has different salestax regulations. So, in short there is no set answer to this question. Most states have free salestax seminars so you know if your complying with the state salestax laws.


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## grandview (Oct 9, 2005)

Since I live in NY ,they tax every thing!


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## vmj (Nov 17, 2008)

sales tax on commercial propertys only. Residential checks are made out to my name. I do a EMS lot that is tax excempt


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## JohnnyU (Nov 21, 2002)

Are you selling goods or services? Illinois does require charging (and collecting) sales tax on goods. They do not however, charge a tax for services (such as snow plowing) rendered.

http://www.revenue.state.il.us/index.htm


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## tuney443 (Jun 25, 2006)

grandview;983831 said:


> Since I live in NY ,they tax every thing!


Be grateful Grandview that you're not in Putnam,Dutchess,or Westchester County.You get to miss out on the newest,f***** up the most,unfair tax of them all---this MTA tax that has got me fuming.It's based on a percentage of what an employer pays out in withholding and unemployment taxes ,ALL to benefit the MTA out of NYC.In other words,because I have the ''luxury'' of being able to purchase an over-priced train ticket to see the Yankees in the Bronx,I,being an employer of 1 [myself,I'm a corp.],have to pay for this great ''privilige'' to support the MTA. Sorry to rant and hijack--I know this is about sales tax. 81/8% on plowing/salting in my county.


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## grandview (Oct 9, 2005)

Everyone in NY supports NYC. We have the highest electric bills in the country but live next to one of the largest hydro plants .Also our sales tax is 8.75%


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## heavychevy01 (May 2, 2007)

grandview;983831 said:


> Since I live in NY ,they tax every thing!


Ditto, I include tax on all my invoices.


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## heavychevy01 (May 2, 2007)

tuney443;984050 said:


> Be grateful Grandview that you're not in Putnam,Dutchess,or Westchester County.You get to miss out on the newest,f***** up the most,unfair tax of them all---this MTA tax that has got me fuming.It's based on a percentage of what an employer pays out in withholding and unemployment taxes ,ALL to benefit the MTA out of NYC.In other words,because I have the ''luxury'' of being able to purchase an over-priced train ticket to see the Yankees in the Bronx,I,being an employer of 1 [myself,I'm a corp.],have to pay for this great ''privilige'' to support the MTA. Sorry to rant and hijack--I know this is about sales tax. 81/8% on plowing/salting in my county.


Sorry to hijack also, but ALL of NY pays for that mess called New York City. You just have the unlucky "privilige" of paying more. Here around Albany there were some talks a while back about NYC becoming it's own entity, like Washington DC. Don't know why the talks ever stopped.


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## LTLANDSCAPING (Jan 7, 2009)

6% Sales Tax on all plowing and salting invoices here in CT!


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## Neige (Jan 29, 2008)

Yea were number 1. We charge 5% federal sales tax, then we add that to the total and charge 7.5% more provincial sales tax. Total sales tax 12.87%, wait a minute that is not a good thing. :crying:


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## LTLANDSCAPING (Jan 7, 2009)

Neige;984207 said:


> Yea were number 1. We charge 5% federal sales tax, then we add that to the total and charge 7.5% more provincial sales tax. Total sales tax 12.87%, wait a minute that is not a good thing. :crying:


The good old Canadian Government is still putting a hurting on their citizens! People here in CT are used to paying for Sales Tax on items they purchase, not services. From what I've been told by my accountant, there are very few "services" that need to charge Sales Tax; Ladnscaping and Plowing are two of them!


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## JDiepstra (Sep 15, 2008)

Neige;984207 said:


> Yea were number 1. We charge 5% federal sales tax, then we add that to the total and charge 7.5% more provincial sales tax. Total sales tax 12.87%, wait a minute that is not a good thing. :crying:





LTLANDSCAPING;984253 said:


> The good old Canadian Government is still putting a hurting on their citizens! People here in CT are used to paying for Sales Tax on items they purchase, not services. From what I've been told by my accountant, there are very few "services" that need to charge Sales Tax; Ladnscaping and Plowing are two of them!


How do you guys think Canada provides "free" health care?


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## lilpusher (Nov 16, 2009)

As of right now in Indiana there is no sales tax on labor, but with the state of the economy rumors are it will change soon.


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## LTLANDSCAPING (Jan 7, 2009)

JDiepstra, Guess what is going to happen in here if Obamacare goes through? (side note - I don't want to talk politics!) This is a plow forum and I love plowing!


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## Neige (Jan 29, 2008)

JDiepstra;984268 said:


> How do you guys think Canada provides "free" health care?


True enough, and I would not have it any other way. When my 14 year old daughter got cancer, 2 days after being diagnosed, she had an operation, and started chemo right after. It was all free did not cost a thing. Very happy it was not in the hands of an insurance company looking for loop holes not to pay. Am a little bitter when I lost dear friend in Florida, because the insurance company said her treatment was experimental so declined her. The 400 grand to try and save her life was to much, she passed 6 weeks later.


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## LTLANDSCAPING (Jan 7, 2009)

Neige;984370 said:


> True enough, and I would not have it any other way. When my 14 year old daughter got cancer, 2 days after being diagnosed, she had an operation, and started chemo right after. It was all free did not cost a thing. Very happy it was not in the hands of an insurance company looking for loop holes not to pay. Am a little bitter when I lost dear friend in Florida, because the insurance company said her treatment was experimental so declined her. The 400 grand to try and save her life was to much, she passed 6 weeks later.


Sorry to hear that Paul! My grandmother (85) lives in Sherbrooke and from what she tells me, the care for younger people is better. My Uncle lives in Longeuil, whereabouts in Montreal is your shop?


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## Neige (Jan 29, 2008)

LTLANDSCAPING;984394 said:


> Sorry to hear that Paul! My grandmother (85) lives in Sherbrooke and from what she tells me, the care for younger people is better. My Uncle lives in Longeuil, whereabouts in Montreal is your shop?


Right next to your uncle in St-Bruno. If ever you come up this way give me a call, lunch is on me.


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## andcon83 (Dec 10, 2005)

JohnnyU;983876 said:


> Are you selling goods or services? Illinois does require charging (and collecting) sales tax on goods. They do not however, charge a tax for services (such as snow plowing) rendered.


Same as Maine. The charge for your truck is not taxed. But if you sell/use a bag of calcium/salt, you need to charge sale tax.


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## LHK2 (Jan 22, 2007)

Has anyone every thought that a government official is scanning messages about taxes?


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## tuney443 (Jun 25, 2006)

LHK2;984763 said:


> Has anyone every thought that a government official is scanning messages about taxes?


Yeah--it just goes without say that you want to be careful on what you say on an open forum like this one.


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## Lugnut (Feb 25, 2006)

heavychevy01;984160 said:


> Sorry to hijack also, but ALL of NY pays for that mess called New York City. You just have the unlucky "privilige" of paying more. Here around Albany there were some talks a while back about NYC becoming it's own entity, like Washington DC. Don't know why the talks ever stopped.


That would be the best thing for the state. Let the city deal with its own messes and let the rest of us worry about ourselves


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## Lugnut (Feb 25, 2006)

And as for sales tax, I've got to pay it so I charge it


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## JMR (Feb 24, 2003)

Lugnut;984801 said:


> And as for sales tax, I've got to pay it so I charge it


When my customers ask me why I am charging them salestax, I tell them, I only collect it from them for the city and state. If they have a problem with that they need to contact the dept of revenue.


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## creativedesigns (Sep 24, 2007)

Neige;984207 said:


> Yea were number 1. We charge 5% federal sales tax, then we add that to the total and charge 7.5% more provincial sales tax. Total sales tax 12.87%, wait a minute that is not a good thing. :crying:


With this new "HST" tax, it will bring out the underground economy, but in term might create a black market. I wish it could stay as is now.


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## tuney443 (Jun 25, 2006)

Lugnut;984801 said:


> And as for sales tax, I've got to pay it so I charge it


You mean you charge sales tax because being a registered NYS vendor requires yourself to collect the tax from your plowing/salting clients so that you can send to Albany the tax you collected along with your ST 100 form.Remember,big brother is watching.


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## certpay (Feb 3, 2010)

*MTA Tax*



heavychevy01;984160 said:


> Sorry to hijack also, but ALL of NY pays for that mess called New York City. You just have the unlucky "privilige" of paying more. Here around Albany there were some talks a while back about NYC becoming it's own entity, like Washington DC. Don't know why the talks ever stopped.


Here's help on the MTA Tax, we hope! Help Fight The MTA Tax

As if things are not bad enough, local businesses, municipalities and school districts on Nov. 2 had to fork over 34 cents for every $100 of their payrolls to help dig the Metropolitan Transportation Authority (MTA) out of a $1 billion deficit. The tax affects all businesses and municipalities, school districts and nonprofit organizations that have a payroll and hospitals within the areas that are serviced by the MTA. These areas include the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and wesportWestchester.)

PLEASE sign the petition to help repeal the MTA Tax, and forward it to everyone.

Got to our petition http://www.liasb.org .to Long Island Advancement of Small Business, One Hewitt Square # 217, East Northport, NY 11731 1-877-895-2372 http://www.liasb.org


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## the new boss 92 (Nov 29, 2008)

does anyone know a website for illinios sales tax and what exsempt and whats not? next year when i grow my buissness i want to keep everything real, and not get screwed on anything.


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## BossPlow614 (May 27, 2009)

the new boss 92;983546 said:


> who here puts tax on there plowing invoices and does taxes for snow removel for thoughs who work a partitme or full time job?


everyone...
if you dont you shouldnt be operating, if you dont pay taxes i hope the IRS finds you takes more than you're worth from you.


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## JohnnyU (Nov 21, 2002)

the new boss 92;985206 said:


> does anyone know a website for illinios sales tax and what exsempt and whats not? next year when i grow my buissness i want to keep everything real, and not get screwed on anything.


Did you see my post? I'll quote it again for reference:


JohnnyU;983876 said:


> *Are you selling goods or services? Illinois does require charging (and collecting) sales tax on goods. They do not however, charge a tax for services (such as snow plowing) rendered.*
> 
> http://www.revenue.state.il.us/index.htm


With the current state of affairs, this may change though.



WGLandscape;985522 said:


> everyone...
> if you dont you shouldnt be operating, if you dont pay taxes i hope the IRS finds you takes more than you're worth from you.


See above.....  It is not a federal tax, it is a state-based tax.


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## JMR (Feb 24, 2003)

http://www.revenue.state.il.us/Businesses/index.htm

Should be able to find it somewhere of this site


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## JMR (Feb 24, 2003)

More specific info

http://www.revenue.state.il.us/Businesses/TaxInformation/Sales/rot.htm


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## the new boss 92 (Nov 29, 2008)

ill read thoughs links in a little bit i have to run out so i dont have time right now


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## the new boss 92 (Nov 29, 2008)

WGLandscape;985522 said:


> everyone...
> if you dont you shouldnt be operating, if you dont pay taxes i hope the IRS finds you takes more than you're worth from you.


sorry for asking a simple question i didnt know the answer to, because i just started in the industry and only have one account and i am also in a totally different state then you.


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## snowman4 (Nov 25, 2007)

Neige;984463 said:


> Right next to your uncle in St-Bruno. If ever you come up this way give me a call, lunch is on me.


Does that go for everyone? lol


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## hlntoiz (Jan 13, 2009)

vmj;983855 said:


> sales tax on commercial propertys only. Residential checks are made out to my name. I do a EMS lot that is tax excempt


So you are not claiming them? If you ever get audited you will get caught. Friend of mine did. They audit every thing. Business and personal just for this reason.

And if you think you are sneaky taking the check to their bank to cash them....do you ever wonder why they ask for your lic? They know exactly what you are cashing.

Cash is Cash. All check are claimed for me.

If you are a "professional" all taxes should be paid. If you are not paying your taxes then that is the definition of a "lowballer" in my book That is why they are not charging what they should be charging. Because they are not playing by the same rules as everyone else.


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## Neige (Jan 29, 2008)

snowman4;986052 said:


> Does that go for everyone? lol


Yes it does, and if you come down for the show I will buy you a beer. I wont have time for lunch, but we had a good time that night with some on this site.


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## JohnnyRoyale (Jun 18, 2006)

Neige;984207 said:


> Yea were number 1. We charge 5% federal sales tax, then we add that to the total and charge 7.5% more provincial sales tax. Total sales tax 12.87%, wait a minute that is not a good thing. :crying:


You charge 12.87 on services?



Neige;984370 said:


> True enough, and I would not have it any other way. When my 14 year old daughter got cancer, 2 days after being diagnosed, she had an operation, and started chemo right after. It was all free did not cost a thing. Very happy it was not in the hands of an insurance company looking for loop holes not to pay. Am a little bitter when I lost dear friend in Florida, because the insurance company said her treatment was experimental so declined her. The 400 grand to try and save her life was to much, she passed 6 weeks later.


This truly is a great country to live in. Your daughters the one carrying the olympic torch right? I take it shes ok today.

I pay my share of taxes, and constantly ***** about them. Three years ago I too was on the operating table within a week of being diagnosed with Cancer. Cost me zero.

Sorry to hear about your friend. We just recently (July) lost my mother in law to this same horrible disease. You win some and you lose some I guess.


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## big acres (Nov 8, 2007)

JohnnyRoyale;986282 said:


> You charge 12.87 on services?
> 
> This truly is a great country to live in. Your daughters the one carrying the olympic torch right? I take it shes ok today.
> 
> ...


Another quick hijack...

Neige, JohnnyR... down here we hear people argue over what your health care is really like up there. Some think it is bliss, while other think you'll wait six months for the most basic stuff.

Sounds like you both had good experiences, but someone said they treat younger people better than older ones and if your to old to make the investment they just put you on an ice flow. Is this true?

As for sales taxes in Minnesota most summer work is taxable at 6.75% (roughly) and winter is non taxable. Selling materials to the customer can go two ways -We either pay the tax to our supplier when we purchase and incorporate into the cost to the customer OR deal with the mess of collecting, tracking, and explaining it to our customers. Guess which one we like?


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## rooferdave (Jan 23, 2010)

Neige;986260 said:


> Yes it does, and if you come down for the show I will buy you a beer. I wont have time for lunch, but we had a good time that night with some on this site.


what show and when??

I will be in Brossard the weekend of May 7 is this close to you? not sure if I'm actually going to stay out this year I may stay in Montreal itself this year and travel to the Hellenec center each day.


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## Neige (Jan 29, 2008)

JohnnyRoyale;986282 said:


> You charge 12.87 on services?
> 
> Yep on both commercial and residential contracts. There is $38.61 of taxes for a double drive. We colloct about $140,000.00 of taxes for the government for snow alone.
> 
> ...


Thanks, seems like it is becoming the number 1 cause of death. Sorry for your lose.


big acres;986382 said:


> Another quick hijack...
> 
> Neige, JohnnyR... down here we hear people argue over what your health care is really like up there. Some think it is bliss, while other think you'll wait six months for the most basic stuff.
> 
> ...





rooferdave;986481 said:


> what show and when??
> 
> I will be in Brossard the weekend of May 7 is this close to you? not sure if I'm actually going to stay out this year I may stay in Montreal itself this year and travel to the Hellenec center each day.


Brossard is just 15 min from me. One of the largest residencial contractors is in Brossard with over 5000 clients and 45 tractors.
It is the largest snow equipment show in Quebec. August 20 and 21 check it out at http://www.entreneige.com


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## JeffNY (Dec 19, 2005)

Starting January 1 2010 we are adding sales tax to all invoices, hopefully no one will have a problem with it.


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## SnowGuy73 (Apr 7, 2003)

Snow plowing / removal is a non taxable service here in Minnesota. Lawn mowing / maintenance is taxable, so we do charge sales tax for that.


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## tuney443 (Jun 25, 2006)

certpay;985190 said:


> Here's help on the MTA Tax, we hope! Help Fight The MTA Tax
> 
> As if things are not bad enough, local businesses, municipalities and school districts on Nov. 2 had to fork over 34 cents for every $100 of their payrolls to help dig the Metropolitan Transportation Authority (MTA) out of a $1 billion deficit. The tax affects all businesses and municipalities, school districts and nonprofit organizations that have a payroll and hospitals within the areas that are serviced by the MTA. These areas include the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and wesportWestchester.)
> 
> ...


Your petition is only good for residents of Suffolk and Nassau Counties---why?


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## tuney443 (Jun 25, 2006)

JeffNY;986650 said:


> Starting January 1 2010 we are adding sales tax to all invoices, hopefully no one will have a problem with it.


Hopefully for you,that would include the sales tax auditor who just might be reading this.Open forum--remember???????


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## clark lawn (Oct 7, 2005)

all you guys that arent charging tax that should be here is a story for you.
a friend of mine, we went to school together and are both on the FD together, had a construction/snow removal biz. he never charged tax. well a few years ago he lost an account and when the new guy submitted an invoice with tax on it the manager questioned it. he explained that the state says he has to do this and nothing he can do about it, customer makes a few phone calls to verify this with the state since in the 5 years she had been there she never paid tax. we she told the state people that and who her service provider was. about 6-8 months later he gets a notice for a sales tax audit, he couldnt show on any invoices were he had collected sales tax. they went all the way back to the day he started his biz and assest the taxes he should have payed plus intest and penalties. it cost him tens of thousands of dollars, he lost his biz and everything. almost lost his house. after he had enough to give them a certian percentage now he make payment of 500 dollars a month for 5-6 years. he has about 3 years left. if he masses a payment then he has to pay everthing in one lump sum. A member on here bought his plow setup. state told him he MUST show tax as a line item on his invoices. so you guys that just pay the tax and include it in your bill you may get busted for this.


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## hlntoiz (Jan 13, 2009)

clark lawn;986691 said:


> all you guys that arent charging tax that should be here is a story for you.
> a friend of mine, we went to school together and are both on the FD together, had a construction/snow removal biz. he never charged tax. well a few years ago he lost an account and when the new guy submitted an invoice with tax on it the manager questioned it. he explained that the state says he has to do this and nothing he can do about it, customer makes a few phone calls to verify this with the state since in the 5 years she had been there she never paid tax. we she told the state people that and who her service provider was. about 6-8 months later he gets a notice for a sales tax audit, he couldnt show on any invoices were he had collected sales tax. they went all the way back to the day he started his biz and assest the taxes he should have payed plus intest and penalties. it cost him tens of thousands of dollars, he lost his biz and everything. almost lost his house. after he had enough to give them a certian percentage now he make payment of 500 dollars a month for 5-6 years. he has about 3 years left. if he masses a payment then he has to pay everthing in one lump sum. A member on here bought his plow setup. state told him he MUST show tax as a line item on his invoices. so you guys that just pay the tax and include it in your bill you may get busted for this.


That is a perfect example of how it will catch up with you.

Just to clarify. You don't necessarly have to show it on the bill. At the beginning of my business, I took it out of the amount charged to the customer. As long as you can show the income vs what you paid the state monthly you will be ok. Now with quickbooks it is just easier to have it right on the bill. Also instead of raising their prices a few years ago I just told them I couldn't absorb the cost of sales tax anymore. 6% adds up though out the season. But I did pay the sales tax from day 1 of my business.


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## LTLANDSCAPING (Jan 7, 2009)

In quickbooks, do you guys pay the sales tax on a cash basis or accrual basis? I can't justify sending in sales tax on invoices that have not been paid. What if the customer never pays? The DRS gets the sales tax on a sale that was never paid for. Thoughts?


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## grandview (Oct 9, 2005)

JeffNY;986650 said:


> Starting January 1 2010 we are adding sales tax to all invoices, hopefully no one will have a problem with it.


Where have you been that you haven't been doing it all along?

Also you NY guys, did you get your paper work from the Governor requesting your 50 bucks so you can have the privilege of collecting sales tax for them?


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## hlntoiz (Jan 13, 2009)

LTLANDSCAPING;986914 said:


> In quickbooks, do you guys pay the sales tax on a cash basis or accrual basis? I can't justify sending in sales tax on invoices that have not been paid. What if the customer never pays? The DRS gets the sales tax on a sale that was never paid for. Thoughts?


Sales tax is due by the end of the following month. Customers should have payed by then. Net 30. If they didn't I think you have bigger things to worry about then 6% of what they owe you.


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## big acres (Nov 8, 2007)

clark lawn;986691 said:


> all you guys that arent charging tax that should be here is a story for you.
> a friend of mine, we went to school together and are both on the FD together, had a construction/snow removal biz. he never charged tax. well a few years ago he lost an account and when the new guy submitted an invoice with tax on it the manager questioned it. he explained that the state says he has to do this and nothing he can do about it, customer makes a few phone calls to verify this with the state since in the 5 years she had been there she never paid tax. we she told the state people that and who her service provider was. about 6-8 months later he gets a notice for a sales tax audit, he couldnt show on any invoices were he had collected sales tax. they went all the way back to the day he started his biz and assest the taxes he should have payed plus intest and penalties. it cost him tens of thousands of dollars, he lost his biz and everything. almost lost his house. after he had enough to give them a certian percentage now he make payment of 500 dollars a month for 5-6 years. he has about 3 years left. if he masses a payment then he has to pay everthing in one lump sum. A member on here bought his plow setup. state told him he MUST show tax as a line item on his invoices. so you guys that just pay the tax and include it in your bill you may get busted for this.


This can work the other way too... There was a solicitation for bid for a national company that I went for. In talking with the manager who is based in another state, he asks what the taxes will be on our amounts. When I informed him that MN has no sales tax for snow removal, there was a brief moment of silence. The contractor they had for several years was putting a line on the invoice for 6.5 - 7% sales tax... on top of his actual bid and going into his pocket I suspect. I hope this caught up with him.


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## larold83 (Jan 1, 2009)

i don't charge tax cuz i don't claim my snow plowing what uncle sam don't know wont hurt him plus every body pays me cash except this one business pays me with a check but puts down office cleaning that in my eys don't count as snow plowing


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## LTLANDSCAPING (Jan 7, 2009)

hlntoiz;986996 said:


> Sales tax is due by the end of the following month. Customers should have payed by then. Net 30. If they didn't I think you have bigger things to worry about then 6% of what they owe you.


I am a quarterly submitter for sales tax. If someone is not going to pay me, yes that is an issue, but I don't see the point in sending in sales tax for money that I won't collect. I was asking how everyone else does it... cash basis: sales tax is owed once it is received or accrual basis: sales tax is owed once it is invoiced. I have some slow payers (net in about 45 days). Cash flow isnt the best for me in the winter, especially with a slow plow season. I still can't see the logic behidn fronting the sales tax payments before it is collected from the customer.


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## clark lawn (Oct 7, 2005)

hlntoiz;986858 said:


> That is a perfect example of how it will catch up with you.
> 
> Just to clarify. You don't necessarly have to show it on the bill. At the beginning of my business, I took it out of the amount charged to the customer. As long as you can show the income vs what you paid the state monthly you will be ok. Now with quickbooks it is just easier to have it right on the bill. Also instead of raising their prices a few years ago I just told them I couldn't absorb the cost of sales tax anymore. 6% adds up though out the season. But I did pay the sales tax from day 1 of my business.


this varies from state to state. in Ohio you must show it as a separate line item.


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## hlntoiz (Jan 13, 2009)

LTLANDSCAPING;987071 said:


> I am a quarterly submitter for sales tax. If someone is not going to pay me, yes that is an issue, but I don't see the point in sending in sales tax for money that I won't collect. I was asking how everyone else does it... cash basis: sales tax is owed once it is received or accrual basis: sales tax is owed once it is invoiced. I have some slow payers (net in about 45 days). Cash flow isnt the best for me in the winter, especially with a slow plow season. I still can't see the logic behidn fronting the sales tax payments before it is collected from the customer.


Why wouldn't you collect it? Like I said if you are worried about a few dollars from the one account that didn't pay you then I would call that micro managing. If you are submitting quarterly then the numbers you are showing are not that large. I know once you hit a certain amount you have to do it monthly.


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## JohnnyU (Nov 21, 2002)

larold83;987054 said:


> i don't charge tax cuz i don't claim my snow plowing what uncle sam don't know wont hurt him plus every body pays me cash except this one business pays me with a check but puts down office cleaning that in my eys don't count as snow plowing


Wow. You my friend, are part of the problem, not the solution.


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## JohnnyRoyale (Jun 18, 2006)

X2 Johnny.


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## BHISNOWMAN (Aug 27, 2006)

_*ALWAY'S 6% Sales Tax *_on plowing and salting/sanding invoices here in CT Residential & Commercial.


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## clark lawn (Oct 7, 2005)

hlntoiz;987089 said:


> Why wouldn't you collect it? Like I said if you are worried about a few dollars from the one account that didn't pay you then I would call that micro managing. If you are submitting quarterly then the numbers you are showing are not that large. I know once you hit a certain amount you have to do it monthly.


what if a place were to go banckrupt on you the you wont be collecting.


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## hlntoiz (Jan 13, 2009)

clark lawn;987415 said:


> what if a place were to go banckrupt on you the you wont be collecting.


You can always make adjustments (credit) on your next return. Just have all the paperwork.


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## LTLANDSCAPING (Jan 7, 2009)

clark lawn;987415 said:


> what if a place were to go banckrupt on you the you wont be collecting.


Thanks for understanding my point. Why give the government more money then they deserve. Yes if I get stiffed then I have bigger problems, but why make it 6% worse


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## jomama45 (Dec 25, 2008)

larold83;987054 said:


> i don't charge tax cuz i don't claim my snow plowing what uncle sam don't know wont hurt him plus every body pays me cash except this one business pays me with a check but puts down office cleaning that in my eys don't count as snow plowing


Well, at least I agree that "office cleaning" and "snow plowing" are 2 entirely different entities....................


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## JMR (Feb 24, 2003)

larold83;987054 said:


> i don't charge tax cuz i don't claim my snow plowing what uncle sam don't know wont hurt him plus every body pays me cash except this one business pays me with a check but puts down office cleaning that in my eys don't count as snow plowing


I'm just guessing,but I'd bet you don't carry proper insurance and you can beat everybodys prices too.


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## tuney443 (Jun 25, 2006)

JMR;987853 said:


> I'm just guessing,but I'd bet you don't carry proper insurance and you can beat everybodys prices too.


If he doesn't wise up,he really will be cleaning offices,but not where he would like----probably in the Muncy,PA jail.Then he won't have to worry about charging the sales tax.


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## hlntoiz (Jan 13, 2009)

LTLANDSCAPING;987502 said:


> Thanks for understanding my point. Why give the government more money then they deserve. Yes if I get stiffed then I have bigger problems, but why make it 6% worse


If you are worrying about 6% profit margin on 1 job then you are not charging enough for your services. You need to make more than 6% to be able to save any money for a rainy day. Because they all know there has been many rainny days lately.


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## cubicinches (Oct 19, 2008)

grandview;986951 said:


> Also you NY guys, did you get your paper work from the Governor requesting your 50 bucks so you can have the privilege of collecting sales tax for them?


Yeah... Paid it a few months ago. They call it a "renewal" on your certifiacate. Funny... all the years I've been collecting sales tax, and now I've got to renew my certificate?? What a bunch of BS. You do get a nice orange certificate for your 50 bucks though.


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## JeffNY (Dec 19, 2005)

tuney443;986683 said:


> Hopefully for you,that would include the sales tax auditor who just might be reading this.Open forum--remember???????


Am I missing something? It comes out of MY pocket, starting now, it comes out of the customers pocket. don't worry, states getting their money either way.


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## JeffNY (Dec 19, 2005)

grandview;986951 said:


> Where have you been that you haven't been doing it all along?
> 
> Also you NY guys, did you get your paper work from the Governor requesting your 50 bucks so you can have the privilege of collecting sales tax for them?


Its just been 'included' in the quotes, but I changed my mind for 2010


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## tuney443 (Jun 25, 2006)

JeffNY;989646 said:


> Am I missing something? It comes out of MY pocket, starting now, it comes out of the customers pocket. don't worry, states getting their money either way.


Well how would one know that until now?All you said before was that you're going to start charging the tax to the client.


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## tuney443 (Jun 25, 2006)

cubicinches;989081 said:


> Yeah... Paid it a few months ago. They call it a "renewal" on your certifiacate. Funny... all the years I've been collecting sales tax, and now I've got to renew my certificate?? What a bunch of BS. You do get a nice orange certificate for your 50 bucks though.


I called Albany on this back in the Fall.The lady at Sales Tax came right out and told me this new money making scheme came right from Patterson and either it will now be an annual or an every other year renewal fee.This and mostly that BS MTA tax has got me fuming.


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## JDiepstra (Sep 15, 2008)

Neige;984370 said:


> True enough, and I would not have it any other way. When my 14 year old daughter got cancer, 2 days after being diagnosed, she had an operation, and started chemo right after. It was all free did not cost a thing. Very happy it was not in the hands of an insurance company looking for loop holes not to pay. Am a little bitter when I lost dear friend in Florida, because the insurance company said her treatment was experimental so declined her. The 400 grand to try and save her life was to much, she passed 6 weeks later.


Thanks for the real life examples. Glad to hear about your daughter and sorry about your friend. Please don't take this as insensitive but would the Canadian government have picket up the $400,000 tab for your friends experimental treatment? I'm wondering cause we hear here about how the gov does the same thing up there that the insurance company in Florida did to your friend.


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## mikkinosweat (Jan 27, 2010)

No Sales Tax in Wisconsin for Snow Removal, but you always have to reaad the fine print!!!!


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## Neige (Jan 29, 2008)

JDiepstra;990164 said:


> Thanks for the real life examples. Glad to hear about your daughter and sorry about your friend. Please don't take this as insensitive but would the Canadian government have picket up the $400,000 tab for your friends experimental treatment? I'm wondering cause we hear here about how the gov does the same thing up there that the insurance company in Florida did to your friend.


J My friend needed a bone marrow transplant, they had a donor, but was refused because it was considered experimental. In Canada it is covered. I am not saying we are better, and am sure people slip through the cracks everyday. But my experiance has been only positive, and thats all I can comment on.


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## Watkins (Oct 27, 2008)

andcon83;984664 said:


> Same as Maine. The charge for your truck is not taxed. But if you sell/use a bag of calcium/salt, you need to charge sale tax.


Thats same here in Michigan, I do not charge sales tax for plow/shovel/snowblowing services. I believe I would need to aquire a sales tax license if I was to charge a sales tax.


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## rooferdave (Jan 23, 2010)

hlntoiz;989049 said:


> If you are worrying about 6% profit margin on 1 job then you are not charging enough for your services. You need to make more than 6% to be able to save any money for a rainy day. Because they all know there has been many rainny days lately.


And thats why I'm a roofer


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## clark lawn (Oct 7, 2005)

Watkins;992990 said:


> Thats same here in Michigan, I do not charge sales tax for plow/shovel/snowblowing services. I believe I would need to aquire a sales tax license if I was to charge a sales tax.


well thats part of running a business


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## hlntoiz (Jan 13, 2009)

Watkins;992990 said:


> Thats same here in Michigan, I do not charge sales tax for plow/shovel/snowblowing services. I believe I would need to aquire a sales tax license if I was to charge a sales tax.


If you are providing a service commerically then I am pretty sure you must have all the proper paperwork to be in Business.

If you do not have all the paperwork then you are nieve or just a plan old "lowballer"


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## 24v6spd (Jan 18, 2009)

Michigan does not have sales tax on services. But they tried to make it law in 2007 and it failed. Now they are talking about it again due to the fact that we have an inept governor who refuses to cut the state workforce to match the declining population and revenue.


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## LwnmwrMan22 (Jan 20, 2005)

clark lawn;986691 said:


> all you guys that arent charging tax that should be here is a story for you.
> a friend of mine, we went to school together and are both on the FD together, had a construction/snow removal biz. he never charged tax. well a few years ago he lost an account and when the new guy submitted an invoice with tax on it the manager questioned it. he explained that the state says he has to do this and nothing he can do about it, customer makes a few phone calls to verify this with the state since in the 5 years she had been there she never paid tax. we she told the state people that and who her service provider was. about 6-8 months later he gets a notice for a sales tax audit, he couldnt show on any invoices were he had collected sales tax. they went all the way back to the day he started his biz and assest the taxes he should have payed plus intest and penalties. it cost him tens of thousands of dollars, he lost his biz and everything. almost lost his house. after he had enough to give them a certian percentage now he make payment of 500 dollars a month for 5-6 years. he has about 3 years left. if he masses a payment then he has to pay everthing in one lump sum. A member on here bought his plow setup. state told him he MUST show tax as a line item on his invoices. so you guys that just pay the tax and include it in your bill you may get busted for this.


This happened to me, about 10-15 years ago, before I'd been doing too much work.

It ended up costing about $4,000 in back sales tax, penalties and such, luckily not $10's of thousands.

And for those that don't think the government looks at these threads, 2 summers ago I was contacted by federal investigators about 2 bankers I'd been dealing with that were charged with money laundering and conspiracy to commit fraud.

I had posted an article in the Minnesota paper about the deal and asked people on Lawnsite whether or not they would stay working for the people.

About 3 weeks later I got a phone call wondering if I would answer a few questions.


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