sales and use tax?

[outlaw]

I've been reading and researching the proper ways to conduct my business for quite some time, and I think I've got the basics down enough to get me started, but the one thing I haven't been able to get a clear answer on is sales and use tax. Does it apply to this field (some of what I've read says it does), because I haven't seen anyone discussing it?
If it does, how much am I actually going to be paying? If I mow a lawn for $30, how do they figure what I owe to them,
A) 27.81 for the lawn, and 2.19 for sales tax or
B) do I pay taxes on the thirty dollars, which would come to 2.36.

Keep in mind that I am in San Antonio, Texas, so replies from people near me would be the most appreciated, but I'd like to hear from everyone.
-outlaw

[BRL]

reply

Each state has its own Sales tax laws, and even some cities have their own. So you need to contact your state to get the official rules there. Basically we businesses that provide a product or service that requires a sales tax are agents for the state (or city). We are simply collecting the sales tax due from the consumer & passing it on to the state. So both A) & B) in your example are incorrect So if the $30.00 sale requires a 7.85% sales tax in TX (your example) the answer would be C): You will collect the $2.36 that the customer owes TX for the sales tax, and you will then pass that on to TX. Generally the states will require that you pass on those taxes once a month or quarterly.

To give you an idea of how things vary I'll give you our deal. Here in NJ there is a 6% Sales & Use tax for consumer products (except food & clothing) and services. Since we in the green industry are providing a service, we collect the sales taxes on our services. EXCEPT in the case of our services providing a Capital Improvement to the customer's property, there is no "Use" tax for that labor. The customer is however still required to pay the sales tax for the materials used in the Capital Improvement. Good luck with your research.

BRL

[GrassMaster]

reply

Hello Outlaw:

Are You required to Pay Taxes on Labor where You are Located?

Here in Georgia, We are Not Required to Pay Tax on Labor at All.

We are Required to Pay Taxes on Products that We Re Sell to the Customer.

<b>Welcome Back BRL</b> <img src=icon_smile.gif border=0 align=middle>

<b>Have a Nice Day!
GrassMaster - Admin -Click to PM Me or E-Mail Me!
Help this Site - Take a Survey & Visit our Sponsors!</b>