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: 120
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: 35,752
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: 120
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: 281
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: 120
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
I Got Taken...,
Dan Tanner
Today 06:26 AM
Today 06:26 AM
by Dan Tanner
0 11
REO calling
Dan Tanner
04-16-2014 05:03 PM
Today 06:09 AM
by Dan Tanner
10 220
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
Today 04:22 AM
by Tekeda1
17 348
Customers droping like...
goodtimez
Yesterday 09:53 AM
Yesterday 09:36 PM
by Greg'slawnandlandscape
6 119
2.5 acre mowing
xandrew245x
Yesterday 06:55 AM
Yesterday 08:57 PM
by xandrew245x
6 104
new to this forum!
mower13126
Yesterday 07:37 PM
Yesterday 07:37 PM
by mower13126
0 37
Back for this year
xandrew245x
02-21-2014 04:30 PM
Yesterday 05:36 PM
by Steve
13 838
Best Bulk Mulch delivery...
Steven Virgadamo
Yesterday 09:52 AM
Yesterday 05:34 PM
by Steve
2 54
this mower is driving me...
boog
04-17-2014 12:07 PM
Yesterday 05:10 PM
by Steve
3 109
Steve Virgadamo,...
Steven Virgadamo
Yesterday 09:49 AM
Yesterday 05:08 PM
by Steve
2 48
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
Yesterday 04:51 PM
by Steve
3 87
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
Yesterday 04:49 PM
by Steve
11 331
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
Yesterday 04:47 PM
by Steve
5 176
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 04:41 PM
by Steve
31 1,041
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
Yesterday 04:39 PM
by Steve
9 197
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
Yesterday 04:04 PM
by stevef1201
10 189
leaf removal
tlf59263
04-15-2014 10:00 PM
Yesterday 03:59 PM
by stevef1201
6 165
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 600
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 718
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 96
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 265
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 85
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
04-16-2014 10:43 AM
by Steve
3 110
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 595
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 223
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 164
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 299
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 199
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 99
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 285,412
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 420
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-14-2014 10:51 AM
by Steve
8 327
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 425
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 168
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-14-2014 10:03 AM
by Steve
5 195
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 407
Hello all
Griff20114
04-12-2014 05:08 PM
04-14-2014 09:46 AM
by Steve
1 111
Step by Step Spring Lawn...
WarriorLawnscaping
04-10-2014 07:01 AM
04-14-2014 09:43 AM
by Steve
5 232
Jeff Cowden
jcowden
04-11-2014 07:27 PM
04-14-2014 09:39 AM
by Steve
1 105
Exmark Commercial 30...
Dan Tanner
04-11-2014 05:35 AM
04-14-2014 09:37 AM
by Steve
4 188
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-14-2014 08:04 AM
by acrajchel
21 1,586
Small guy time to get a...
googus
04-08-2014 08:16 AM
04-13-2014 07:18 PM
by A. Kulak Landscaping
9 318
Weekly vs. Bi-weekly
CDLAWNCARE
04-12-2014 01:48 PM
04-13-2014 06:03 PM
by kslawn
9 329
Weed ID help
TwinBrosLC
04-12-2014 10:39 AM
04-13-2014 07:40 AM
by stevef1201
4 161
Lexington, KY
acrajchel
04-07-2014 01:06 PM
04-11-2014 09:49 PM
by acrajchel
1 133
Food Plot Management
BlackRain75
04-11-2014 10:20 AM
04-11-2014 03:51 PM
by Steve
4 132
Estimating a job
acrajchel
04-08-2014 11:07 AM
04-11-2014 03:32 PM
by Steve
6 300
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
04-11-2014 03:25 PM
by Steve
11 1,006
Hello....
SWFloridaLawns
04-10-2014 06:15 PM
04-11-2014 02:28 PM
by Steve
2 125
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
04-10-2014 10:33 PM
by ExtremeLawncareServices
78 25,083
» Popular Tags
4wd 34'' bid charge christmas light hanging christmas lighting collections subcontractor color jet courtesy call credit card processing cultivation customers decorating echo ecosymbiosis escrow exmark ferris first truck flower bed cultivation price fs90r fundraiser gopherhaul grass gravely holiday honda how much to charge introduction lawn care lawn care business show lawn service leaf removal lighting marketing mechanic monthly mowing mowing clarksville mulch native plants new buisness new business online classifieds organize outdoor environments payday pb500t podcast reo requests riding mower rotating scag season seo social media starting a business start up lawn care business steve stihl taxes top dresser toro trailer truck turfgrass consulting walker winter winter services
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:02 AM.


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

All times are GMT -5. The time now is 07:02 AM.

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