Discount for Cash

[John Doherty 126]

Had a guy refuse to hire me today because I would not give him a discount for cash (take cash and not charge the sales tax). This was a $500 job, so the tax would have been $35.

Why do some people feel they have to 'get over' on somebody in order to do things?

[MMI Enterprises 289]

Why you charging tax for a service? Is that a NJ thing or something?

[Camelot 68]

I was thinkin' the same thing...Do you have to charge tax on services in Jersey?

[Tegrey 121]

John,

We have folks ask for discounts for cash, senior discount, you name it, we hear it. I politly always refuse. Why would I discount our fix fee for our company? Where does a discount for them give us business. We all hear that if the price is right, they have more work! POOP on them! The other work never comes around. Our company cost are fixed. We sell our business at a fixed rate. That's it. Discounts to us are for quantity or volume. I'd gladly do 1,000,000 sq. ft. for less than 1,000 sq. ft., per sq. ft. Look who shops at discount stores. I'd prefer the customer who really cares about their property. Who is willing to pay the price for a quality job. No discounts there. Thank You.

[MMI Enterprises 289]

Here is my California rules and I read it to mean that it only applies if I directly pass on the price of paint or stain rather then I being the consumer of the product in my course of business:

Regulation 1551. REPAINTING AND REFINISHING.

Reference: Section 6006, Revenue and Taxation Code.

Painters, Polishers and Finishers, see Regulation 1524.

Resale Certificates, see Regulation 1668.

(a) REPAINTING AND REFINISHING FOR CONSUMERS. Tax does not

apply to single or lump-sum charges for repainting or refinishing used articles. Tax

applies in such case to the sale to the refinisher of the paint and other materials used

in the process, as he is regarded as the consumer of such property. If the refinisher

uses paint or other materials purchased under a resale certificate, or without payment

of use tax if purchased outside the State or in interstate commerce, he must report and

pay tax measured by the cost of the materials to him.

If, however, the refinisher makes a separate charge at the fair retail selling price for

the paint or similar finishing material that is applied to and becomes a component

part of the used articles, he is the retailer of such paint or finishing material and tax

applies to the amount of the separate charge.

(b) REPAINTING AND REFINISHING FOR SELLERS. A refinisher of

used articles for sellers who will resell the articles in the regular course of their

businesses will be regarded as selling for resale the paint or similar finishing material

that becomes a component part of the used articles. The refinisher should take a

resale certificate under these circumstances.

History: Effective August 1, 1933.

Adopted as of January 1, 1945, as a restatement of previous ruling.

Amended by renumbering August 5, 1969, effective September 6, 1969.

Amended February 5, 1975, effective March 13, 1975. Provided for charge of tax

where materials used are separately stated for consumers and, as to resellers,

that a resale certificate should be furnished.

"SERVICES — The sale of services where no tangible personal property is transferred or where the

transfer of property is incidental, are not subject to sales and use taxes. Persons providing services

are consumers of property used in their business activities. However, persons who engage in service

operations are retailers of any supplies or other tangible personal property sold to their customers or

clients, and tax applies to gross receipts from such sales. Certain services, however, are defined as

sales of tangible personal property. For example, the fabrication of tangible personal property for a

consumer is defined as a “sale” even when the consumer provides all the tangible personal property

used to fabricate the end product."

Every state or local goobermint could have different regulations though so do your due diligience (sp?)

Oh and note that if we buy stains or paints from out of state and are not charged tax then we owe use tax. Same designation as buying things online like off ebay.. I hear they cracking down on such nowadays..

[John T 744]

I was thinkin' the same thing...Do you have to charge tax on services in Jersey?

For a Service in NY you have to charge sales tax. Home Improvements you do not which seems a bit unfair because Powerwashing a house or deck is really a home improvement but the state disagree's so I have to charge an 8.65% sales tax.

[John Orr 206]

The customer is looking for a break because he expects you will pocket his cash and not claim it - thereby saving money on your taxes.

[John T 744]

The customer is looking for a break because he expects you will pocket his cash and not claim it - thereby saving money on your taxes.

Exactly

[RPetry 564]

Kevin & John,

Why you charging tax for a service? Is that a NJ thing or something?

Yes its a NJ thing. This state is nearly as bad as John T.'s NY. A sales tax of 7% must be assessed on labor.

[John Doherty 126]

John O exactly right, but since I won't he won't hire me.

Hey Rick do you have a HIC#?