Sales Tax Question...

[rogergbest]

I'm a bit confused and getting conflicting answers to this question. I've had some poeple tell me that landscaping work is expempt from sales tax. I've had others tell me that sales tax has to be charged for materials.

I'm in Arkansas. I know (from past experience) that if I ask the state that question, they will tell me to charge the tax, regardless of whether there is a loop-hole on this issue or not. It appears that most people are telling me that if I simply quote the entire job, and don't break out the plant materials separately, that I don't have to charge sales tax (at least that's what most of the locals are telling me.

Does anyone have a definate answer on this one?

Thanks,

Roger

[Stephen M.]

You really need to know your states taxing structure and what items or services are charging sales tax. I can't speak to that in Arkansas. If the State of Arkansas says to charge sales tax on product and your service, then you had better do it. The tax is charged off to the customer in any case, unless it is a VAT or Value Added Tax which is added from manufacturer
to distrubutor, to purchaser, to seller.

In Washington, I have a resale tax #, also known as a UBI #. I can purchase items I resale in the business without paying sales tax just as long as I don't make personal use of the items. As the re seller of a bag of fertilizer I purchased wholesale, I collect the sales tax from the end user--my customer, and I turn that tax into WA state monthly. My service labor is also taxed.

[riches139]

Same setup in Ohio.

[rogergbest]

Sales Tax question...

O.K., thanks for the input. I guess that I'm going to have to do what I figured I should have done in the first place... call my accountant.

I own another business and I ONLY offer services just because I hate (and I do mean HATE) messing with sales tax. Services are not taxable and I've been hearing that all landscaping fell into that category in Arkansas, but this is too big of a subject to take lightly.

Again, thanks.