Confuse about Taxes in Florida

[Kidsweet]

I am seriously confused about taxes in Florida. I gave an estimate today and thought I was suppose to accept sales tax on a clean-up job. Trimming,weeding, pruning. My customer called me back saying we don't pay taxes on services. I am lost. He thought that I was trying to get over on him. I told him that I guess I was misunderstanding the tax process. Can someone please tell me about this subject. I still got the job, but it could of been a 175 dollar mistake.

[AAffordable]

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taxes only apply to product not, labor!! or at least that is how we have awlays known it to be.
hope to have been of some help.

Donny&Cynthia Moore

[smartwork]

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Labor is taxed in some states, but not always in all industries within that given state. You'll find divisions/industries that are exempt and they all may be in your state of Florida.

I would contact your state revenue office, and perhaps several times to help ensure you get consistent answers. This can often be tougher than one would think as revenue offices can often be "yes" happy when it comes to answering whether you should give them money or not. Also see if you can check with a reputable accountant.

Also, states often have all this documentation online so you may check with your state's official revenue website.

-shaun

[alcpi]

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You do not have to charge or pay sales tax for labor services in Florida. You do have to pay 940 and 941. Get an experienced account who is familiar with your type of business and he/she will explain the details.

[Green Giant]

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Kid
As far as I know, Materials-yes, Labor-no.(For Fl. and after 15 yrs.)
Like mentioned,check with an accountant.
Mine takes care of all that.
Things could change though. They have tried to change the law so it would make it necessary to collect taxes on any service biz.
Failed to this point.
If it ever does pass you'll have to collect tax from all your customers and place it in a seperate account to pay the "man".
What a PITA that will be!

Dennis E.
Grasshopper Lawn
Mulberry,Fl.
(Green Giant is my truck!)