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.

Accountant/Sales Tax


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-29-2011, 09:59 PM
element009's Avatar
element009 element009 is offline
Senior Member
 
Join Date: Mar 2011
Location: Ocean County, NJ
Posts: 176
Rep Power: 4
element009 is on a distinguished road
Default Accountant/Sales Tax

Hi all,

1. My business is in NJ, and so part of this question is NJ specific. I had a meeting with SCORE (a free small business counseling service) and they told me that lawn care was not a service that required me to charge my customers sales tax. However, I've been doing more research, and now I think I actually do need to charge sales tax. Does anyone from NJ know the right answer to this. I'm just doing lawn maintenance right now (cuts and clean-ups basically).

2. I am just getting off the ground and trying to keep costs low. How much will an accountant cost me? Can I do without one in the beginning? Any advice would be greatly appreciated.
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 03-30-2011, 03:58 AM
mathteacherj mathteacherj is offline
Junior Member
 
Join Date: Jan 2011
Location: Fort Wayne, IN
Age: 32
Posts: 9
Rep Power: 4
mathteacherj is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I too have been looking into this lately. Keeping in mind that I'm in Indiana, here's what little understanding I think that I have. You should be able to get a tax exempt number where you will not pay taxes on the products that you buy for your company. (or at least the disposables) That tax, you charge to your customer and that is how the state gets paid. I THINK!!! :-)

And I'm thinking that my accountant is between 35-50/hour. Good luck!
Reply With Quote
  #3  
Old 03-30-2011, 08:47 AM
Paineless Creations's Avatar
Paineless Creations Paineless Creations is offline
Senior Member
 
Join Date: Jan 2010
Location: West Richland, WA
Posts: 205
Rep Power: 5
Paineless Creations is on a distinguished road
Default

Quote:
Originally Posted by element009 View Post
Hi all,

1. My business is in NJ, and so part of this question is NJ specific. I had a meeting with SCORE (a free small business counseling service) and they told me that lawn care was not a service that required me to charge my customers sales tax. However, I've been doing more research, and now I think I actually do need to charge sales tax. Does anyone from NJ know the right answer to this. I'm just doing lawn maintenance right now (cuts and clean-ups basically).

2. I am just getting off the ground and trying to keep costs low. How much will an accountant cost me? Can I do without one in the beginning? Any advice would be greatly appreciated.
I went round and round with this also. But after reading the DOR (Washington State) website I charge sales tax also. I know that does not help in NJ. But I thought I would share I charge sales tax. What I found out is that this is NOT a PERSONAL Service, Like haircutting,nails,chiro,doctor.. ETC.. Those items you do not charge sales tax
Reply With Quote
  #4  
Old 03-30-2011, 11:03 AM
Liberty Landscaping LLC Liberty Landscaping LLC is offline
Senior Member
 
Join Date: Oct 2009
Location: Woodbridge, NJ
Posts: 239
Rep Power: 5
Liberty Landscaping LLC is on a distinguished road
Default

Hey
I am in NJ too. I charge it. I asked my accountant and my lawyer both said I have to charge. On the accountant. You have to claim it as well as pay yourself or if you go for a line of credit IE a business loan, mortgage, auto loan you show income. That's what they all told me about that too. Good luck if you need anything message me.
__________________
Liberty Landscaping LLC
www.libertylndscpng.com
Woodbridge, NJ
Reply With Quote
  #5  
Old 03-31-2011, 10:22 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,752
Rep Power: 10
Steve has disabled reputation
Default

Although this can change, it appears normally, services that create capital improvements on a property are taxable, like planting a tree. Mowing a lawn tends to not be viewed as a capital improvement.

There is a bunch of information on this that you can read more on here

Informational Guide - Landscaping Services and New Jersey - Sales Tax

Tax Notes - Landscaping Services

Which says.

Quote:
Repair and Maintenance Services
The Sales and Use Tax Act currently imposes tax on charges for maintaining, servicing, and repairing real property. N.J.S.A. 54:32B-3(b)(4). Repair and maintenance services performed by landscapers are subject to tax under this provision. The following are examples of taxable repair and maintenance services performed by landscapers:

* Lawn mowing
At times, you will get an adviser who will err on the side of caution and tell you to charge sales tax on an item you don't need to. So it is important you do your own research to confirm.

Let me know if this helps.
__________________
- 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
  #6  
Old 03-31-2011, 05:37 PM
element009's Avatar
element009 element009 is offline
Senior Member
 
Join Date: Mar 2011
Location: Ocean County, NJ
Posts: 176
Rep Power: 4
element009 is on a distinguished road
Default

Thanks for the help guys!
Reply With Quote
  #7  
Old 03-31-2011, 09:07 PM
ToastedToad's Avatar
ToastedToad ToastedToad is offline
Member
 
Join Date: Mar 2011
Location: Pac NW
Posts: 64
Rep Power: 4
ToastedToad is on a distinguished road
Default

Quote:
Originally Posted by Paineless Creations View Post
I went round and round with this also. But after reading the DOR (Washington State) website I charge sales tax also. I know that does not help in NJ. But I thought I would share I charge sales tax. What I found out is that this is NOT a PERSONAL Service, Like haircutting,nails,chiro,doctor.. ETC.. Those items you do not charge sales tax
I concur for Washington State. Most customers are shocked to see tax included for mowing services.
Reply With Quote
  #8  
Old 04-01-2011, 10:32 AM
Paineless Creations's Avatar
Paineless Creations Paineless Creations is offline
Senior Member
 
Join Date: Jan 2010
Location: West Richland, WA
Posts: 205
Rep Power: 5
Paineless Creations is on a distinguished road
Default

Quote:
Originally Posted by ToastedToad View Post
I concur for Washington State. Most customers are shocked to see tax included for mowing services.
Hey where in Washington are you? I am in the Tri-Cities
Reply With Quote
  #9  
Old 04-01-2011, 06:34 PM
Tom53 Tom53 is offline
new member
 
Join Date: Apr 2011
Location: Northwest Iowa
Posts: 57
Rep Power: 0
Tom53 is on a distinguished road
Default

I just did my last years taxes today, and spoke to the accountant about this.
In Iowa it IS a taxable service. There are 2 ways I can handle it. First put the sales tax on the invoice and collect it. Most people here would be shocked to see it, as they don't pay tax to the high school kids who used to mow for them. OR and this is how I will handle it, I just charge them the set amount and I just eat the sales tax on that amount. Not much for one small residential property, which is all I do for now, but it could really add up for those with a large number of customers or commercial properties. If I did commercial properties, it would be taxed on the invoice. I believe they would expect it.

The formula here is to divide the cost by 1.07 % to get the tax due.

Example a $40.00 job, customer pays me $40.00, and I keep my books and record that I keep #37.38 and the other $2.62 is what I will owe the state for sales tax on that job. We do not have to pay sales tax on snow removal though.
Reply With Quote
  #10  
Old 04-02-2011, 06:51 AM
turf&tree turf&tree is offline
Member
 
Join Date: Dec 2010
Posts: 67
Rep Power: 4
turf&tree is on a distinguished road
Default Sales tax

Here in Ohio we have been charging it for about 18-20 years. The state came to us back then and told us we had to charge for it. It is based on each counties tax rate that you would work in. 95% of the customers are ok with it. Some opt to pay cash and do not get taxed by me. But yes if you are buying the products like fert and mulch you do not pay sales tax on it at the p.o.p
But need to charge the customers for the tax. I also set up an equipment repair company on the side and do not pay tax on equipment or parts as well.
They are assuming I will be reselling them through that business.
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
Meet with Accountant tiedeman General Business Discussions 1 01-30-2007 07:09 AM
Success at sales Steve Show Off - Picture Post - Photo Gallery 0 01-24-2007 04:27 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
quickbooks users
CDLAWNCARE
Yesterday 09:03 AM
Yesterday 09:58 PM
by MBLC
3 75
this mower is driving me...
boog
04-17-2014 12:07 PM
Yesterday 08:26 PM
by boog
9 218
employee pay
4 seasons maintenance
04-10-2011 09:34 PM
Yesterday 04:40 PM
by Dan Tanner
20 6,818
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
Yesterday 01:19 PM
by phlawncare
17 468
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 11:13 AM
by ExtremeLawncareServices
32 1,123
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
Yesterday 11:11 AM
by kslawn
10 302
danny 2
danny2
04-19-2014 10:19 PM
Yesterday 05:13 AM
by Sprinkler Buddy
2 94
I Got Taken...,
Dan Tanner
04-19-2014 06:26 AM
04-19-2014 08:15 PM
by Dan Tanner
3 155
new to this forum!
mower13126
04-18-2014 07:37 PM
04-19-2014 05:34 PM
by Sprinkler Buddy
3 115
REO calling
Dan Tanner
04-16-2014 05:03 PM
04-19-2014 11:17 AM
by kslawn
11 281
Customers droping like...
goodtimez
04-18-2014 09:53 AM
04-19-2014 08:09 AM
by CDLAWNCARE
7 191
Back for this year
xandrew245x
02-21-2014 04:30 PM
04-19-2014 07:59 AM
by xandrew245x
14 883
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
04-19-2014 07:49 AM
by CDLAWNCARE
4 151
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
04-19-2014 04:22 AM
by Tekeda1
17 406
2.5 acre mowing
xandrew245x
04-18-2014 06:55 AM
04-18-2014 08:57 PM
by xandrew245x
6 142
Best Bulk Mulch delivery...
Steven Virgadamo
04-18-2014 09:52 AM
04-18-2014 05:34 PM
by Steve
2 77
Steve Virgadamo,...
Steven Virgadamo
04-18-2014 09:49 AM
04-18-2014 05:08 PM
by Steve
2 67
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
04-18-2014 04:51 PM
by Steve
3 114
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
04-18-2014 04:47 PM
by Steve
5 203
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
04-18-2014 04:39 PM
by Steve
9 227
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
04-18-2014 04:04 PM
by stevef1201
10 245
leaf removal
tlf59263
04-15-2014 10:00 PM
04-18-2014 03:59 PM
by stevef1201
6 197
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 616
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 755
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 121
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 289
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 107
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 656
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 247
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 191
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 327
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 230
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 121
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 285,938
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 485
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-14-2014 10:51 AM
by Steve
8 381
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 471
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 190
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 456
Hello all
Griff20114
04-12-2014 05:08 PM
04-14-2014 09:46 AM
by Steve
1 127
Step by Step Spring Lawn...
WarriorLawnscaping
04-10-2014 07:01 AM
04-14-2014 09:43 AM
by Steve
5 269
Jeff Cowden
jcowden
04-11-2014 07:27 PM
04-14-2014 09:39 AM
by Steve
1 120
Exmark Commercial 30...
Dan Tanner
04-11-2014 05:35 AM
04-14-2014 09:37 AM
by Steve
4 215
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-14-2014 08:04 AM
by acrajchel
21 1,623
Small guy time to get a...
googus
04-08-2014 08:16 AM
04-13-2014 07:18 PM
by A. Kulak Landscaping
9 353
Weekly vs. Bi-weekly
CDLAWNCARE
04-12-2014 01:48 PM
04-13-2014 06:03 PM
by kslawn
9 363
Weed ID help
TwinBrosLC
04-12-2014 10:39 AM
04-13-2014 07:40 AM
by stevef1201
4 187
Lexington, KY
acrajchel
04-07-2014 01:06 PM
04-11-2014 09:49 PM
by acrajchel
1 152
Food Plot Management
BlackRain75
04-11-2014 10:20 AM
04-11-2014 03:51 PM
by Steve
4 153
Estimating a job
acrajchel
04-08-2014 11:07 AM
04-11-2014 03:32 PM
by Steve
6 332
» Popular Tags
2wd 4x4 ads butterfly gardens buy charge christmas client craigslist credit card customers echo exmark fall ferris financing florida flower bed franchise georgia gopherhaul grass clarksville gravely gravely 34" zero turn health holiday how much to charge how to bid installation kansas city kawasaki lawn care lawn care business podcast lawn care business show lawn service clarksville tn leaf lighting brass outdoor lights llp marketing mow mowing mulch mulch estimate new and restored landscapes new buisness new business new start office management oil payment podcast property management company redmax savannah scag schedule selling seo snow sole proprietorship sprayer starting a business stihl subcontractor tree care unreasonable upsell walk behind walker winter money making ideas
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:31 AM.


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

All times are GMT -5. The time now is 05:31 AM.

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