Sales Tax

Do I charge sales tax on striping?

A good example why people should put a location on their profile. Based on my business experience in California and Colorado Pay the tax on every thing you buy because you're better off not having to be a tax collector for the state. When invoicing DO NOT itemize things like signs or wheel stops. Give one price to complete a job with all materials included. If you itemize the supplies separately you are reselling merchandise as opposed to buying supplies and are required to collect sales tax. The state does not reward you for being a tax collector, the paperwork is a hassle and it gives the government another reason to stick their nose in your business.

In most cases, yes, but not all. Usually if your client will resell your product (such as a general contractor building a property for his client), then they collect the sales tax on the finished goods to the final user (his client). If on the other hand you are selling to the final end user, chances are you need to charge as well as collect...and pay to the state sales tax. Some states have very minor tweaks to the above rules.

Linescapes wrote on Feb 27, 2010:Go to #1

Do I charge sales tax on striping?

You can charge sales tax on material used but.....NOT labor. It's considered a service.

Be safe, ask your accountant.

This is a topic that is specific to the state(s) where you operate. Check with an accountant or Dept. of Revenue in state(s) where you work. Do your homework. We work in several states each year. In 1 state we must (and do) charge and collect sales tax from our customers based on the full invoice price (materials and services). A couple years ago our accountant advised us of an effort in our state legislature to require collecting sales tax on services. Fortunately, the measure did not pass. But,with current conditions of many state budgets, be aware that this may be on the radar as a potential source for new tax revenues in some states.

I forgot my nieghbor worked for the IRS and aske him and he said in Iowa lot restriping labor is not taxable. I went thru all the on line crap about what is and what is not and its hard to make head/tails of how it reads . So I thout he would probly know. (new const is the same)