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Sales Tax TSI?

Started by Good Feller, July 19, 2008, 07:41:43 AM

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Good Feller

Does anyone know if you charge sales tax to do TSI?  I have a tax guy saying yes (because the labor is taxable for felling and trimming trees) and some of my forestry contacts saying no (because it is a contracted service).  I could see charging sales tax on the herbicides placed on the stumps.  What's the right answer???? Thanks   
Good Feller

Tom

It will definitely depend on the rules in your state.  We don't tax "services" and Agriculture comes under different rules than retail sales too.

Ron Scott

Yes, it will depend upon what your state law requires. You will need to check there.

Michigan's governor was trying to add our 6 % sales tax to include services which woud include most service contracts including forestry consulting, but she later dropped it as a bad idea. It wasn't very popular with the voters and costly to initiate and enforce.
~Ron

Dan_Shade

here in MD, if the work is considered a manufacturing step, it is taxable, and any charges relating to the taxable fee is taxable.

Check your state laws, it varies state to state.   Here it is pretty confusing, I contacted the comptroller's office to get specific information for what I do.
Woodmizer LT40HDG25 / Stihl 066 alaskan
lots of dull bands and chains

There's a fine line between turning firewood into beautiful things and beautiful things into firewood.

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