Taxes / Fee's & Other Government Bleeding

[Mojo]

I thought I would start this thread so as not to hijack the other thread where some of this discussion was taking place.

I am curious, what all taxes and fee's do some of you have to pay ( Local, State and Federal )?

Chris

[sofadoc]

I know that some states require you to obtain some type of "business liscense". I assume there is some kind of permit fee associated with that.

We have no such requirement in Texas. We have no other mandatory permits/fees.
Sales tax is 8.25%, which includes .25% local city sales tax.

Re-upholstery is defined in Texas as "refurbishing of tangible personal property", therefore is considered a "taxable service", so we collect sales tax on fabric and labor.
I'm not sure whether or not a new business would have to pay a fee to obtain a permit to collect sales tax. Mine is automatically renewed every year at no charge.

We have no state income tax, but we do pay property tax, including "personal property".

[byhammerandhand]

We have it (relatively) easy:
- no inventory tax
- state business license (fee, renewable)
- LLC registration (fee)
- commercial vehicle runs about double license fees and insurance.
- collect, monthly file,  and remit sales tax on goods and services (lots of exceptions, but not so much for me), by locus of service / sale.    I do work in three states and about 9 counties.   :(

Having no employees, I don't have
- workman's comp
- unemployment insurance
- payroll withholding federal, state, and city, FICA, etc.

[JuneC]

Wow!  I guess we Floridians should count ourselves lucky for the 6% sales tax rate, though it's higher in some counties to fund local stuff.  No state income tax, but there is tangible personal property tax and intangible tax for assets worth more than $20K on January 1 of each year.  So, stockholders pray for a crash on December 31 and a rebound on January 2.  Oh, if you have an accounts receivable account, the first 2/3 is exempt, but the last 1/3 is NOT.  You pay intangible tax on 1/3 of your AR account.  Money in the bank, CD's, annuities are exempt, as well as state bonds, but stocks and mutual funds are not.  You could make a career out of attempting to understand all this rot.

June

[byhammerandhand]

We have a relatively simple sales tax : http://tax.ohio.gov/faqs/Sales/sales_taxability.stm

[sofadoc]

We have a relatively simple sales tax : http://tax.ohio.gov/faqs/Sales/sales_taxability.stm

I notice in the Ohio sales tax laws, they only mention  "REPAIR of tangible personal property", while Texas uses the term "REFURBISHING".
Is there a difference?

[byhammerandhand]

At one time, there was a footnote that said, "Tax laws are complicated.   Call if you have a specific question."

[Eric]

Wisconsin, depending on county, .5%, plus .1% in 4 countys for Brewers stadium, .1% Brown county for Packers stadium. 5% state tax, sellers permit every year(allows me to collect sales tax for state)
Corp. registration every year, inventory tax. There are more, I don't think they apply to me thou.
Eric
Yes, Quarterly 941 for feds, unemployment state.

[gene]

I like Chicago's gun tax. Take money from people who legally own guns to help pay for the destruction caused by those who own guns illegally. Oh, and to pay for the gun shot wounds from said illegal gun owners to the butts and legs of those who dared to sell their drugs on said illegal gun owners' street corner, and were not fast enough to draw their own illegal guns before they were shot in their respective butts and legs.

My intent here is to stay on the topic of taxes. It is not my intention to go off topic and give an example, although it would be a good one, of "redistribution of wealth".

gene

[Eric]

Thats not redistribution of wealth. That is an attempt to move commerce to a different county.
I agree with your premise of what is occuring.
Eric

[mike802]

In Vermont I have to collect a 6% sales tax only on items sold, not including labor.  I have to renew my corp. charter once a year, about 30.00 bucks.  with no employees I do not have to collect withholding, workman's comp. Ext. 

[Mike]

Noy junes got me  thinking im dojng somthing wrong.

Here i have. 7% sAles tax and federal income taxes.
But the materials vs labor make me wonder should i break down a job to the. Aterial cost and labor no tax? Ive alway cibuded a job  say $5000 add 7% $350 tax total $5350 total id hate to. Real it down on a contract showing the customer the small amout of the material (maybe $800) vs the high labor.

[RiCat]

The Florida Department of Revenue says not to split the invoice on labor and material. They say to charge state and local (county surtax) sales tax on the total invoice amount. I wish they would let us split the invoice on labor and materials here in Florida. It would be easier to sell the job, especially on the larger jobs.

Rick

[sofadoc]

The Florida Department of Revenue says not to split the invoice on labor and material.

I don't know what Texas has to say about that. But I used to split them on my invoices. And I got several complaints.

A common response was:
"You're charging me tax on LABOR??? Isn't that illegal?"
Many people don't realize that we do not charge sales tax........we merely collect it. But a couple of customers actually accused me of pocketing an extra 8.25%.

Taxing the whole amount once is much less stressfull on the customer's brain.
For the same reason, I keep my total invoices simple. I don't list every little insignificant item that went into the job. It gives the customer less ways to scrutinize the bill, and try to figure out how to squeeze "Ole' Doc" out of any of that nasty old profit.

[Mike]

The Florida Department of Revenue says not to split the invoice on labor and material.

I don't know what Texas has to say about that. But I used to split them on my invoices. And I got several complaints.

A common response was:
"You're charging me tax on LABOR??? Isn't that illegal?"

I look at is im selling a product just like when I buy something at a store there labor there too