Sales Tax!
vote(s)
Post Reply| Yes |
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54.5% | |
| No |
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45.5% | |
| Sometimes |
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0.0% |
I spoke with the PA DEPT of REV last year, and I was told a roof "treatment" would not be taxable. A roof "cleaning" is taxable. How many of you collect sales tax? I currently do, but I am starting to think now, that I don't want to any more. We are killing a pest? Does pest control collect sales tax? How about the great area of sidewalks and windows?
I believe windows are taxable. House washes not so sure. Would like to hear from everyone but especially you PA guys. I am starting to do get into commerical work, and I don't want to pay the sales tax, on that stuff! I'm sure they don't either!
Dan
I was told by two accountants now that any type of cleaning service in PA requires the collection of sales tax. I have customers question that all the time because when they start gathering estimates, they find there are quite a few roof cleaners in PA that don't collect it. I was thinking on your lines of describing it as a treatment, but that brings up the question of having to have a pesticide license since you would be labeling it as a treatment now. As of know, I collect sales tax for all services that would fall under the term "cleaning". So when I have a cleaning job that requires shingle repair or such, I itemize everything out separately and only tax the cleaning services.
As for my commercial accounts, I haven't had a complaint yet from any of them regarding paying the sales tax. This includes other roofing contractors, place of business owners, and management companies for apartment complexes, condos, and town homes.
AC
Seems that would separate the sheep from the goats Mike!
AC
Groceries yes. Service no in Louisiana
I charge it in NJ also. I was told by my accountant that a service or maintenance IS taxable, and certain home improvements are not. According to him, and he used to work for the IRS, the service we provide IS taxable.
The general rule in NY is that sales tax applies to everything. Parts, labor, shipping, material - all of it. Capital improvement is exempted, but only on the labor. Thus if you build a garage for somebody you pay tax when you buy the material and pass the tax on material through to the customer. The labor you charge is not taxable, but only if your customer provides the proper exemption form that you need to keep on file. Form is below.
http://www.tax.ny.gov/pdf/current_forms/st/st124_fill_in.pdf
Sometimes I do 'cash' jobs and bury the tax. It's 8% here so I'll tell a customer something is $100 and it gets booked as $92.59 plus tax. They think they are getting a deal or dodging the tax whereas if you tell them $90 for the job and write it up as $97.20 with tax they get annoyed. I plow snow and it's especially true there. We have a lot of 'beer money plowers' around here who don't collect tax (and can't because they don't have a sales tax id). The problem is that in the customer's eyes the going rate is the rate. To them $100 is $100 regardless of how much is service and how much is tax. Basically it means the legitimate ones of us have to essentially charge 8% less to compete.