Sales Tax? - REO Property Preservation Forum
 
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post #1 of 7 (permalink) Old 01-06-2013, 01:02 PM Thread Starter
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Sales Tax?

How do you guys address the issue of sales tax? My accountant says some of the work I perform is subject to sales tax (lawn care, installing smoke detectors, sump pumps, etc.) unless I am working for exempt organizations. Is property preservation work exempt?

I realize this is something I should've figured out a year ago but I didn't find this helpful forum until recently.
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post #2 of 7 (permalink) Old 01-06-2013, 01:34 PM
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Hopefully your accountant is on top of your state regs and as such their advice should take priority to any thing you might read here.

I would think that state regs can vary on this matter.

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post #3 of 7 (permalink) Old 01-06-2013, 03:14 PM
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Whenever I give bids or charge for any services, after I figure out my o/h and profit I add the sales tax into the final amount.
After the job is complete I submit the figure when I submit the sales tax.
A lot of companies say "our clients don't pay sales tax" well I am not eating it. This way it is included and taken care of.
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post #4 of 7 (permalink) Old 01-06-2013, 03:19 PM
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If they were to state that I'd ask them since when was it OK to break their contract and go against the local regulation portion of their contract.

Use their contract to your favor at all times. God knows they'll use it against you and for their benefit at all times.

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post #5 of 7 (permalink) Old 01-06-2013, 04:32 PM
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most states use sales tax on goods for sale not services rendered. Do a google search on sales tax in your state and find if services rendered are subject to sales tax.
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post #6 of 7 (permalink) Old 01-06-2013, 04:45 PM
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MOST States DO charge for services...not only for goods. It is termed Consumer Use Tax. In States that collect this tax it is normally for lawn services (grass cuts but not for landscape type work--tree trimming or planting shrubs), maid services, cleaning services, repair services (since the home is not owner occupied), locksmith services and a host of other provided services. Our ruling was basically there is tax on everything but the trashout.

NOTE: Freddie, Fannie and HUD homes you dont charge sales tax due to being exempt ONLY IF YOU GET A COPY OF THE EXEMPTION CERTIFICATE!! Good luck with that unless you have a realtor that will supply the form on each home-- Forget getting this Sales Tax Exemption Form from the Service Company--easier to charge tax and submit.
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post #7 of 7 (permalink) Old 01-06-2013, 10:32 PM
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You provide a service, sometimes that service requires materials which you pay taxes on at the time you purchase them...service...at least in NV...is not taxable...
We fill out a form quartly and then we have to pay a tax on our revenue....I don't handle that part of our business so I'm knowledgable in the details only the what I've stated...
But you are not selling the materials...so unless you have a resale license you should not be charging taxes on materials...

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