Collecting Sales Tax

What services are taxable and which are not?

My main work would be under the following.
Exhaust
Home
business parking lots
business sidewalks
Truck cleaning(dirt dump trucks, asfault trucks and some semis).

I live in Texas. Any help would be greatful.

You better check with your local tax authorities. In my area, all of those are untaxable services.

Scott Stone

I just talked to an accountant today and she asked me this very question and i told her i assumed i did not have to being i am offering a service and not selling a product. She informed me that there are some services that require sales tax to be added. I am in wisconsin and would agree with the above advice to check with your local tax laws. She informed me that Lawn Care companies here are required to pay sales tax. Investigate! I will post after my meeting with my accountant to let you know the wisconsin way.

In Illinois, when I checked many years ago, the service part of our work is not taxable. If products changing hands, from me to the customer, (detergent, masking, etc.) exceed 30% of the total bill, then those items would be taxable.

I have never charged sales tax.

Dave Olson

Dave Olson said:

In Illinois, when I checked many years ago, the service part of our work is not taxable. If products changing hands, from me to the customer, (detergent, masking, etc.) exceed 30% of the total bill, then those items would be taxable.

I have never charged sales tax.

Dave Olson

Click to expand...

Best to check with the local tax laws, but in MOST places, services aren't taxable, but in many areas, goods are. So if you charge the homeowner directly for stain, for example, you have to charge tax. Again, it depends entirely on your local laws...it isn't a federal thing, it is state and/or local.

i live in WA i have to collect sales tax for all work i do and turn it in four times a year you better check its a pain if you don't have to don't do it i pay it when i pay my B&O Tax its all on the same form

Best to check with your state! In my area, ALL of those are taxable. Bascially, any service performed to a building or the building property is taxable.

In my state, Pennsylvania, some are taxable and some are not. I am required to collect it, and file monthly sales tax returns. The penalties for not doing it properly can be pretty stiff, so be sure to contact your state's revenue department and find out exactly what you are required to do.

As a matter of fact, when I started my business, I actually asked two seperate people in the department, just to be sure.

According to our state code, none of the services were taxable until 1991, when some of the code was changed.

Good luck.

Here is some additional info, from http://www.tded.state.tx.us/guide/STEP2.html



State Taxes

Business Taxes
The Comptroller of Public Accounts is charged with the administration and collection of state and local sales tax from businesses operating in Texas, and also collects any franchise taxes owed by Texas corporations. There is no state income tax in Texas. The Comptroller maintains field offices in most major Texas cities to provide assistance and aid in complying with tax regulations. For further information on these taxes, contact:

Comptroller of Public Accounts
111 West Sixth Street
Austin, Texas 78768-4843
512/463-4600 or 800/252-5555

The permits required for taxes collected by the Comptroller are defined and outlined in the section titled "Alphabetical Listing of Business Licenses and Permits".

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http://www.window.state.tx.us/taxinfo/sales/index.html



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Sales Tax and your new business:

http://www.window.state.tx.us/taxinfo/sales/new_business.html


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Here is the Texas Administrative Code: This will probably be the best place for you to do some research. Read it very carefully, but don't let it be a substitute for calling someone to find out for sure.

http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=5&ti=34&pt=1&ch=3&sch=O&rl=Y