Sales tax on tint?

I wanted to know if other shops charge tax on window tints. I do paint protection film and asked my accountant if I need to charge sales tax and she said just on the film not the labor. But I dont want my customers knowing it only cost me $30 in film to do a hood and charge $200 or more.
Any help is greatly appreciated

Where are you from?
Let me tell you the way we do it here in ALABAMA (yelled loudly for an unknown reason)

I pay tax on my film and supplies when I purchase it. You do not have to pay tax on labor here yet. So I don't have to break it down as long as I can prove that taxes were paid on the purchase of the materials. You can compare this to a body shop using paint and materials. Lots of dealers do the same here. Buy the detail supplies paying tax to save the headache of seperating it later. I have heard and seen people put a shop fee at the same percentage as sales tax and slide it in under (literally) the blank spot that says sales tax. Makes it look like tax but was actually a bogus shop charge. You do what you like, I consider this dishonest making one thing look like another.

But to answer your question, The above is how I get around breaking it down. It's not illegal or dishonest in any form of the word. It's making life simple by not seperating it for you, the state, and the customer. hope this helps

thats the way i do it I just pay sales tax on the tint when i purchase it

Hopefully none of them are reading this.

I do the same thing on tinting. No sales tax charged, but I have to charge tax on all my signs & graphics that I sell. Go figure

I charge sales tax on autos only...no tax on residential or commerical. I was told that if it is considered a perment item being installed no tax...but if I would just sell customers the film I would have to charge sales tax on the materials...on the autos I charge our 6% sales tax on the complete job, collect it and pay the sales tax every 3 months..I do not break down the material from the labor and I charge the tax on the whole job ex. 200.00 plus 12.00....I'm probably wrong what do accountants know any way....

well every state is different. i heard FL is about to start taxing labor. Is this true?

The only time we charge tax is if someone comes into the shop and just wants to buy tint for personal installation. If we do the tint job then no tax is charged. This makes accounting easier since otc tint sales are a minimum.

But do you pay sales tax on the film when you buy it? If so, I would take the money and pocket it. Or if you aren't the shop owner, ring it up as non taxable merchandise or labor. Sounds reasonable to me. You only pay tax once on a purchase. And if GA is like AL you paid when you bought the film

No sense in blowing you tax dollars twice. You are cutting your profit margin by that many percent

U have a very good point there. That is what we shall start doing, just ringing it up nontaxable.

glad someone listens to me. Hell, I barely listen to myself

Thanks for the help. I do not pay tax when I buy the film, but am going to ask my distributer if he knows the laws in Colorado and if I could pay the tax when I purchase and not have to charge customers.

You need to be sitting down with an accountant instead of getting advice from distributors.

I don't even listen to the accountants all the time. Call your state tax division and ask someone that knows first, then go from there.

I too pay the sales tax when I purches it so that I can do what ever I want with my products. I can cover a lake with it if I so choose.

Great advice call your state or federal agency. Write down the name and the agents # (they are assigned an identifying #) of whom you talked to. Write down the date and the time you called. Ask them to send you information if possible. Free information is the best information . When you get it call and ask more questions. It is free. Use thier services first.


TTC

Good advice TTC..If you don't collect the tax from the customer you might have to end up paying it for them..

How it works here is simple...if the windows move (eg. auto) it's 15% taxes

If the windows are stationary (eg. house,building) it's 8%taxes

I live in FL and heard of no such thing.

[quote=tintman Pa,Aug 9 2004, 04:43 PM]
I charge sales tax on autos only...no tax on residential or commerical. I was told that if it is considered a perment item being installed no tax...
Same here

tint is free to customers when labor is purchased.

Here in Indiana, Labor is not taxed. Yes, I break it down on the receipt, but nobody ever asks why the film is so cheap and the labor so much.

If they do, I'll just tell them that I'd be more than happy to charge more for the film if they want to pay more taxes.

YOU CAN PAY IT OR YOUR COUSTOMER CAN. we charge tax on the complete job. never had any complaints because that is the way its suspose to be in KY. subject thoughly researched with the state and accountant. breaking it down would be a real hassle.

Our province is wacky...if I tint an automobile..it's 15% taxes!(7% GST + 8% PST )

If I tint a building or home...it's only the 8%GST


What's the difference you ask ?

One set of windows is mobile...the other set of windows is secured on foundation

here in california there is no tax on labor ............. its how you right up invoice........

I think that is right.......

i dont charge tax on labor or material just on accesories. stereos amps ETC...

In Texas my interpretation of the tax code suggests the following. On automotive we are considered remodelers, so we have to collect tax on the full job, parts and labor (see Rule 3.292). On residential we would be contractors and we would not charge the customer any tax, but would have to pay tax on the film when we purchase it (see Rule 3.291). On commercial we would be considered remodelers of nonresidential real property and would have to collect tax on the full job (see Rule 3.357). I gather from this thread others in Texas don't share this interpretation of our tax code? Would love to hear your thoughts.


wftech

in cali I thought there was no tax on tint because I pay it when I purchase it, but the state board of equalization notified me about two months ago that if my materials are more than 10% of the total cost on an auto that I should be charging tax. So if they get pushy I'll have to prove to them that my tint doesn't exceed 10% of what I charge. that sucks!!!

we pay tax on the film when we buy it, there fore you cant charge tax again when you sell it to a customer. labor is non taxable here.

[quote=TintWizard,Dec 4 2004, 01:56 PM]
How it works here is simple...if the windows move (eg. auto) it's 15% taxes

If the windows are stationary (eg. house,building) it's 8%taxes

[/quote]


[quote=Marco,Jan 15 2005, 11:56 AM]
[quote=tintman Pa,Aug 9 2004, 04:43 PM]
I charge sales tax on autos only...no tax on residential or commerical. I was told that if it is considered a perment item being installed no tax...
Same here

[/quote]

Is that what you should do TW?
But I guess if it works for you right?

in virginia, the state sent around auditors to check on all the local tint shops. film is considered a product and therefore must be taxed, now whether you pay the tax when you purchase the film or charge tax at the installation you have to do one or the other. here is how we used to do it. take the average cost of the material for a car and tax that. in reality it comes out to $1.00 per car.

the only problem with that is filing for sales tax at the end of the month. therefore it make more sense to pay the tax as you buy the product.

I'm in Texas also, and what I was advised when Igot my tax # from the State was
to pay tax at time of purchase and to lump the job together.
Such as:
FUll Tint 1) PITA car.
Materials and Labor: $---
Then, record subtotal and grand total as the same amount with a line through the sales tax box.
This was 12 years ago when I got my tax # things mighta changed since then.
But, if you do NOT pay tax at time of purchase, list the price of the tint at 50%
of the total and make a profit on the material.
When the Customer mentions how expensive it is and what Wally World sells it for,
mention the higher quality films cost more !

if you have to break it down like that then definately mark up the product for profit margin that keeps you in business. I pay tax upfront that is how the state recomended me when I was inquiring.

"Fabrication" labor is taxed here in the People's Republik of Minnesota.

So sadly I can't just pay it on the film and not have to collect any on the labor.

Kinda like the TV repairman handing his customer a bill for 250.00

Customer 250.00 for a f#@kin' transistor?

Repairman No, the transistor was only 1.00, it's 249.00 for knowing WHICH transistor!

thats a good one I gotta remember that

I"m in Tennessee and our accountant informs me that I'm not allowed to charge my customers tax on flat glass installs because the government considers it a "service"..........

Here in Georgia, I pay tax when I purchase film and then my quoted price is the price customer pays.

(and I don't have to do any math in public)