Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Sales Tax on Mulch


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 01-30-2013, 04:24 PM
Billy Goat's Avatar
Billy Goat Billy Goat is offline
Senior Member
 
Join Date: Nov 2012
Posts: 155
Rep Power: 2
Billy Goat is on a distinguished road
Default Sales Tax on Mulch

How do you bill a mulch job, lump sum or itemized? How do you factor in sales tax if you are legit and are tax exempt? Let say you buy 1 yard for $30 and charge the customer $70.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 01-30-2013, 07:48 PM
willshome willshome is offline
new member
 
Join Date: Jan 2012
Location: Mass
Posts: 865
Rep Power: 0
willshome is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Some people charge cost on mulch and just charge labor so the tax is already paid. Check if there is tax on labor in your state
Reply With Quote
  #3  
Old 01-30-2013, 08:48 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Quote:
Originally Posted by willshome View Post
Some people charge cost on mulch and just charge labor so the tax is already paid. Check if there is tax on labor in your state
yeah I would tax the whole $70 but thats how CT is. We dont have to tax mowing but almost any other service we do.
Reply With Quote
  #4  
Old 01-31-2013, 11:52 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,519
Rep Power: 10
Steve has disabled reputation
Default

Quote:
How do you factor in sales tax if you are legit and are tax exempt?
Do you have to collect sales tax on mulch in your area? What about the installation of it?

If you do on one of them, it might be better to itemize. If you don't, you could simply give one price.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #5  
Old 01-31-2013, 05:58 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

in my state everything is taxable so your options are if you are a registered sales tax collecting business is to use your sales tax exempt form with your vendors and then charge tax at the end the entire sale.

or if by chance you paid sales tax on the materials you purchased and have a receipt you can deduct the amount of that transaction from the total job and pay tax on the difference.

as long as the state gets their tax money they don't care if it comes from you or anyone else or any combination for that matter.
Reply With Quote
  #6  
Old 02-01-2013, 02:55 AM
Billy Goat's Avatar
Billy Goat Billy Goat is offline
Senior Member
 
Join Date: Nov 2012
Posts: 155
Rep Power: 2
Billy Goat is on a distinguished road
Default

Quote:
Originally Posted by dpld View Post
in my state everything is taxable so your options are if you are a registered sales tax collecting business is to use your sales tax exempt form with your vendors and then charge tax at the end the entire sale.

or if by chance you paid sales tax on the materials you purchased and have a receipt you can deduct the amount of that transaction from the total job and pay tax on the difference.

as long as the state gets their tax money they don't care if it comes from you or anyone else or any combination for that matter.
Can you give me a break down with numbers so I understand you correctly. Purchased 1 yard of mulch for $30 and sold the mulch for $70 installed. The sales tax is 6%. What would be the break down for business records and what would the bill to the customer look like?
Reply With Quote
  #7  
Old 02-01-2013, 08:55 AM
Caskey Lawns & Landscapes's Avatar
Caskey Lawns & Landscapes Caskey Lawns & Landscapes is offline
Senior Member
 
Join Date: Feb 2012
Location: Gettysburg PA
Posts: 282
Rep Power: 3
Caskey Lawns & Landscapes is on a distinguished road
Default

This is by no means difficult

If you are going to sell your mulching service with installation included in your (per yard ) calculations , it would look like this....

10 yards/mulch $ 700.00
Sales Tax 42.00 ( my rate is 6%)
__________

Total $ 742.00


Hope this helps....................
Reply With Quote
  #8  
Old 02-01-2013, 11:06 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by Billy Goat View Post
Can you give me a break down with numbers so I understand you correctly. Purchased 1 yard of mulch for $30 and sold the mulch for $70 installed. The sales tax is 6%. What would be the break down for business records and what would the bill to the customer look like?

as far as the customer and the state are concerned the sales tax would be based on $70 per yard X's the amount of yards used plus 6%.

whether you paid tax on the mulch when you bought it and charged tax on the difference of $40 per yard it works out exactly the same on the bill as if you charged tax on the $70 per yard.

the only real difference is the state already got tax on $30 dollars of your $70 per yard price through your vendor.

and when you do your sales tax monthly or quarterly return depending on how much tax you collected in a month you would just keep a tally of all the jobs like that you did where you paid tax on the material portion of the job and that would fall into the deductions line on your return.

for example, my state charges 7% sales tax and if i did a job like you did and charged $70 per yard x's 10 yards the total would be $700.00 + 7% with a grand total of $749.00. being that i paid taxes on the mulch when i bought it and the mulch was $300.00 i already paid $21.00 in sales tax which means i would owe another $28.00 in tax on the remaining difference.
i would still charge the customer the $749.00 and i would be reimbursed the $21.00 that i already paid.

if that is all i did that month using that as a example i would fill out my return stating that my gross receipts for the month was $700.00 and when it asked me what my deductions were if any i would put down $300.00.
then it would ask me how much tax i collected and i would say $28.00, which is on the $400.00 dollar difference between my gross sales and deductions.

in a sales tax report the deduction line is for amounts that are either non taxable or amounts where tax was already collected.

that is why you need to keep records on the materials you purchased and already paid tax on so in case you do get a audit you have your bases covered.

i know we all live in different states and some things are slightly different but one thing i am pretty certain on is that when a business becomes a state licensed sales tax collecting business that you get a state certificate of authority that has a tax registration #. you are also entitled to fill out the tax exempt form and hand that to all your suppliers to keep on file because you will be re-selling the product.
they do allow for a occasional deductions because they take into consideration that you may not deal with the same vendors all the time as well as you could be working for a church or something like that which is tax exempt.
they do frown on businesses that don't utilize the tax exempt forms as well as like i said it raises red flags if used too often.
it did for me when i started taking care of a large church and cemetery for the last 3 years and deducting 4k each filing.
even though it was all legit they still had to check and i still had to go through the crap of proving so.

if you are not a registered sales tax collector then do not by any means charge sales tax ever.
you will get in huge trouble by doing so if caught and if your customers found out you would be seen as a scoflaw scamming them out of more money.

as i said in a earlier post all the state is concerned with is getting their cut, my states cut is 7%.
at the end of the day all that translates to is they want 7% of all your sales and they don't care if it is all by you or a combination of you and your vendors. as long as the numbers add up to them getting their 7% of that transaction that is all they care about and that is why i can not stress enough how important it is to keep proper records.

sales tax is money that the customer pays and all you do is work out being the middle man between the state and the consumer.
if at any given point you are paying money out of your own pocket for sales tax then you are screwing yourself up big time.

Last edited by dpld; 02-01-2013 at 11:12 AM.
Reply With Quote
  #9  
Old 02-01-2013, 05:43 PM
Billy Goat's Avatar
Billy Goat Billy Goat is offline
Senior Member
 
Join Date: Nov 2012
Posts: 155
Rep Power: 2
Billy Goat is on a distinguished road
Default

Thanks dpld, your last comment really helped me understand how to factor in sales tax and how to report it to the state. I use to sell stuff on ebay for a profit and had to tax maryland residents 6% sales tax. I had a sales and use tax license and reported my gross sales along with tax collected. Now going into lawn service, I was a little confused when you factor in mulch plus labor and customer pays tax on installed mulch. Iam a good record keeper so I shouldn't have any problems. I was lucky and never got an audit from the state. I want to keep it that way.

I want to have my facts straight if a customer questions me why I add sales tax and more so why so much because of upcharge and/or labor cost. They might think Iam ripping them off if they found out you can buy mulch for $30 per yard and I charged them $70 per yard installed. Then taxed them on top of that. Iam sure I will lose some bids because of adding in sales tax.
Reply With Quote
  #10  
Old 02-01-2013, 05:54 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Quote:
Originally Posted by Billy Goat View Post
I want to have my facts straight if a customer questions me why I add sales tax and more so why so much because of upcharge and/or labor cost. They might think Iam ripping them off if they found out you can buy mulch for $30 per yard and I charged them $70 per yard installed. Then taxed them on top of that. Iam sure I will lose some bids because of adding in sales tax.
Well the mulch place would be charging them tax anyway. If they delivered it for say $30, they would be taxed on that too.

The autoshop,grocery store, electrician, plumber, would all charge tax on the total bill. So why would we be different?
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Sales Tax Report gene gls Gopher Software Support Archived Question & Answers - Read Only 5 04-18-2006 08:34 PM
How to set up sales tax regions Steve Gopher Software Support Archived Question & Answers - Read Only 8 05-05-2005 07:21 AM
sales tax (?) Tandem Gopher Software Support Archived Question & Answers - Read Only 4 04-01-2005 10:18 AM
different sales tax weed-eat Gopher Software Support Archived Question & Answers - Read Only 1 05-14-2004 07:05 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Business Cards
crieg122
Today 12:03 PM
Today 01:02 PM
by biglee
1 14
Lawn Care business...
crieg122
10-23-2014 01:23 PM
Today 12:54 PM
by biglee
6 236
raking leaves ?
robert8509
10-22-2014 09:19 PM
Today 12:09 PM
by biglee
10 314
Leaf Box & Loader Set...
ringahding1
10-21-2014 06:20 AM
Today 11:46 AM
by crieg122
6 321
Gie-review / What's new...
ExtremeLawncareServices
Today 09:19 AM
Today 09:19 AM
by ExtremeLawncareServices
0 29
Dealing With Gas Can...
Mr. Mow
10-21-2014 01:41 PM
Today 08:37 AM
by Dan Tanner
10 386
Leaf removal
madmedic8575
Yesterday 04:14 PM
Today 06:47 AM
by Mr. Mow
3 124
My Newest Toy (B.P....
Dan Tanner
10-23-2014 05:50 PM
Today 05:06 AM
by Dan Tanner
2 167
hey everyone
robert8509
10-22-2014 08:16 PM
Yesterday 11:07 PM
by robert8509
7 249
new to the forum
madmedic8575
Yesterday 02:52 PM
Yesterday 02:52 PM
by madmedic8575
0 77
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
Yesterday 01:00 PM
by Steve
11 919
12 Years in Business!
Chilehead
10-23-2014 08:07 AM
10-23-2014 11:08 PM
by Chilehead
2 170
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
10-23-2014 05:55 PM
by biglee
13 481
Hi from SoCal
Jmoney
10-23-2014 11:29 AM
10-23-2014 12:51 PM
by Steve
1 138
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
10-23-2014 12:33 PM
by Steve
5 595
Pda
stevef1201
10-18-2014 02:05 PM
10-23-2014 06:12 AM
by ringahding1
4 421
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
10-22-2014 01:27 PM
by Steve
6 491
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
10-22-2014 01:23 PM
by Steve
3 464
Hi Steve From West...
Mr. Mow
10-21-2014 01:59 PM
10-22-2014 01:19 PM
by Steve
1 235
Help a brother...
tbtigers03
09-28-2014 11:41 AM
10-22-2014 08:51 AM
by ringahding1
12 1,602
first year update
cmdlawncare
08-12-2014 05:41 PM
10-22-2014 07:47 AM
by ringahding1
4 1,436
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
10-21-2014 01:36 PM
by Mr. Mow
16 739
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
10-21-2014 01:26 PM
by stevef1201
11 589
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
10-21-2014 01:19 PM
by ExtremeLawncareServices
158 11,527
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
10-21-2014 01:04 PM
by SGL1
4 339
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 1,914
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,398
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 306
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 375
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 829
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,293
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 568
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 408
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 747
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 1,051
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,426
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 771
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-15-2014 06:43 PM
by NHray
1,190 340,435
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 495
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,596
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,601
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,702
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 625
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 786
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 630
Help pricing a large...
Bradcook21
10-07-2014 06:49 AM
10-13-2014 02:00 PM
by Steve
7 979
leaf removal
Double J LLC
10-03-2014 04:24 PM
10-13-2014 06:46 AM
by Billy Goat
19 1,631
Acerage Rake
acrajchel
04-23-2014 07:23 PM
10-12-2014 10:53 PM
by SGL1
2 944
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
10-12-2014 06:20 PM
by kslawn
25 1,763
Credit card contract
SGL1
10-06-2014 05:31 PM
10-12-2014 03:40 PM
by SGL1
18 1,169
» Popular Tags
4wd apartment complex article marketing bark bid blades bob villa charge collections collections subcontractor commercial decorating demonstration ditches edging employee problems estimate exmark ferris first truck gopherhaul gravely growing a lawn care business hardscapes honda how much to charge hydraulic installation introduction landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website marketing mechanic monthly mr dave mulch mulch price new mower past due patio install podcast promotion reo running a business scag scag v-ride search engine optimization seo shell small engine repair snow starting a business start up lawn care business steep lawns steve stihl theft of services toro tree trimmer rack truck new used landscape walker won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:34 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 01:34 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy