Sales Tax?

[EnviroClean 15]

This is probably a silly question but Puerto Rico just signed sales tax into law and I need enlightment.

Up until now if you went to WalMArt and something had a price tag on it that said $9.99 on it, you paid exactly $9.99. Now with the sales tax it will be just like the states everything plus tax.

So here is my question....do you folks charge sales tax to your customers? If you do a housewash for $325.00 do you charge that plus tax?

I am considering moving to a different Island or just back to the states if costs keep going up:lgangry:

[PressurePros 248]

Jason, depends on the state. PA does not allow tax on services like ours. NJ requires it.

[Mathew Johnson 123]

NY requires it also

[JEAPAINT 14]

NJ does require sales tax to be charged for labor. Materials is no sales tax cause the tax is already paid for when bought from the store.

[PressurePros 248]

Doug, I have charged sales tax on (and reported) the entire bill of goods when I do NJ work (maybe three jobs per year) The reason for that is, my products were purchased online and were not encumbered with any sales tax. If this is an incorrect policy for NJ, I will discontinue that. My logic is that I was selling a marked up product to an NJ user therefore NJ wanted their share on the sale.

[StainlessDeal 16]

NJ does require sales tax to be charged for labor. Materials is no sales tax cause the tax is already paid for when bought from the store.

Here, the law changed from no sales tax on labor, to a rather complicated law that basically lists all the businesses that are required to collect and remit sales tax. It also has a series of qualifications for what the remittance schedule should be, based mostly on predicted monthly grosses.

This law was written to go after lawn services and car washes, but they have added other businesses each time the opportunity has arisen. I've heard that if you ask for a determination, your business will have to charge. In other words, if you need to ask, you need to pay.

This has been a bit of a burden, as people routinely ask if I have a cash price. I'm very tempted to offer one, but don't since it does nothing for StainlessDeal's credit, or for my declared income. It also negates my insurance policies, exposing my customer and myself to liabilities ad nauseam.

I usually point out these problems and we go from there. I win some, I lose some. I just won't be illegitimate.

Another strange thing: In Nebraska, the offending customer pays the fine if the contractor fails to collect the correct rate. (Each county may have a sales tax added to the basic state sales tax, and this also must be collected and remitted to the State Department of Revenue) My custy's despise hearing this.

Generally, I try to avoid this topic by making the fact that I operate legitimately a major selling point, as opposed to any lowballers that may be bidding against me. I've noticed that some demographics seem to be more apt to ask for a cash price, or to mention a lowballer in the running. I'm more and more trying to raise the bar, and expend my energy in more "legitimate-minded" turf. Prequalifying my leads a bit more, has begun to weed out prospects shopping strictly on price, or who just can't (or won't) afford the service as offered.

[seymore 90]

We have no sales tax on labor here in Texas but only when i sell some stain it's 8 1/4 % charged.

[JEAPAINT 14]

Doug, I have charged sales tax on (and reported) the entire bill of goods when I do NJ work (maybe three jobs per year) The reason for that is, my products were purchased online and were not encumbered with any sales tax. If this is an incorrect policy for NJ, I will discontinue that. My logic is that I was selling a marked up product to an NJ user therefore NJ wanted their share on the sale.

Ken, In that case you would have to charge sales tax for materials. NJ ALWAYS wants their share!!! MORE MORE MORE GIMMIE GIMMIE GIMMIE.

[Mark Williamson 14]

LoL Yes.. gimmie,gimmie,gimmie !!!