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PLNA e-News: Protecting Values In Pennsylvania

Sales Taxes and Landscape Contractors

Monday, October 14, 2013   (3 Comments)
Posted by: Gregg Robertson
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HARRISBURG - PLNA recently has received several questions from landscape contractors about what is subject to sales tax and what is not. It's actually pretty straight forward - mostly.

Generally, landscape contractors must pay sales taxes on all materials and equipment used on a job. Labor is not subject to sales tax. However, you cannot itemize sales taxes that you pay on materials and equipment on the invoice you present to your customer.

For example, you have contracted to put in a paver patio for a client. You must pay the sales taxes on all of the materials and equipment used on that job: the pavers, the stone for the base, the broom that you use to sweep the sand, the vibrating compactor that you rent, etc. The sales taxes you have paid cannot be itemized on your bill. However, you can include the sales taxes as part of the markup or overhead you charge the client for the job. They just cannot be itemized on the bill.

The exception to this is when you are working for a tax-exempt entity, like a church or government agency. Then, certain items you are using on a job are not subject to sales tax.

Also, lawn care services are subject to sales taxes in Pennsylvania, but that's another topic.

The Pennsylvania Department of Revenue has a pretty good website on this topic in a question and answer format. Click here to go to their website. 

Questions? PLNA members may call Gregg Robertson at 717.238.2033 and he'll do his best to answer them!

Comments...

Gregg E. Robertson says...
Posted Tuesday, February 18, 2014
Taxability of shipping fees - The answer to the question from Doyle and McDonnell is a bit complicated, because it depends upon whether the delivery charges are placed on goods that are themselves taxable. If a good is taxable, the delivery charges are taxable. It could be that in both examples the delivery charges are taxable. In the case of the plants, the delivery charges could be taxable or not, depending whether they are for resale as plants or are to be included as part of a contracted landscape job. In the case of the part for equipment, the delivery charges will most always be taxable. For a fuller explanation, please call Gregg Robertson at 800.898.3411. As a PLNA member, we are always available to help with your government-related questions!
Doyle and McDonnell, Inc. says...
Posted Monday, February 17, 2014
what is the PA State tax rule when charging sales tax to shipping fees from a vendor. Example. If I order a part to repair landscape equipment and it needs to be shipped in... I the customer will be charge a shipping fee, is that shipping fee taxable? another example - If I order plant material and there is a delivery fee. Is the delivery fee taxable? . Please advise...
Doyle and McDonnell, Inc. says...
Posted Monday, February 17, 2014
what is the PA State tax rule when charging sales to shipping fees from a vendor. Example. If I order a part to repair landscape equipment and it needs to be shipped in... I the customer will be charge a shipping fee, is that shipping fee taxable? another example - If I order plant material and there is a delivery fee. Is the delivery fee taxable? . Please advise...

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