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Sales taxes in your area


That Guy

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I'm curious. How many of you have a sales tax on your labor and mileage? Here in good ole Nebraska we do. A couple of years ago the state decided it wasn't taxing us enough so they slapped one on labor. Funny, they don't tax labor to repair your car, but if you have your appliance repaired, they want their extra money from that.

You wouldn't think it would add up to much, but on long jobs with expensive parts it can really add up. I have had customers that complained because they had to pay taxes on labor. I have to tell them to take it up with the state. I personally think its hurting the repair business.

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Here in Texas only parts were taxed untill 1983 I believe, then everything has sales tax added on, labor, transport of for repair, etc.   Only exceptions are if just a service call is charged and no repairs are done that s/c is not taxed.Also cause-of-loss is not taxed as no repairs are done.  Now if a repair is done everything is taxed on the same invoice, cannot back the service call out to omit this from the tax, however if the s/c is on a seperate invoice it is exempt.... Also to confuse it more only tangable goods are taxed, so in theory if you work on a built in oven or dishwasher this labor would not be taxed since this would not be tangable goods that you take with you when you move...try to remember this....:?.....when this law first came out I had to actually provide a copy of the blurb from the state comptroller to irate customers that said they were not gonna pay tax on labor, would not believe what I was telling them..still get this years later since they just had their car repaired and labor was not taxed....well call the state, they can explain this one to you since I believe people to take their cars with them when they move, right?  I called the state years ago and asked them about this, they had no explination....no tax on labor to repair your airplane either....guess that is left behind also....lol...now Oklahoma, just north of us, does not have tax on labor...repairs are taxed according to the tax laws where the business is located...try explaning that to the okies...they bring it here we gotta tax the labor, we go up in Oklahoma we gotta tax the labor....does not go over well.

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The whole job, s/c, labor and parts are all taxed in NJ. Unless it is a capital improvement like converting a vent hood to an OTR microwave, adding A/C or upgrading a furnace or boiler. These are not subject to sales tax. I also deal with a number of warranty companies and each of them seem to have a different deal with the State. Some pay sales tax on parts only, some are completely exempt and others pay like a resident.

"Why are you charging me SALES TAX?" I am not charging it, I am merely collecting it.

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  • Team Samurai

None in Hew Hampster... yet.  Nanny-staters have taken over the State House and sooner or later, they're gonna need to raise taxes to pay for all their feel-good programs. 

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Try 6% GST ( federal government sales tax) and 8% PST ( provincial sales tax) on everything all the time in Ontario.  The only exception being children's clothes and some grocery items.  We service a reserve which belongs to the Mohawk natives and they don't pay any tax unless they are living off the reserve - then they only pay 6% PST.  I go down there maybe once a month and then forget to omit the tax on the bill for collect calls and have to scratch everything out.  They watch you make out the bill and then say - oh, I don't pay tax because I have native status.  Yeah - thanks.

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  • 4 weeks later...

Delaware has no sales tax, but when I work in Maryland the billing system taxes 5% on the parts.

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  • 10 months later...
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When I run calls in Michigan, only the parts are taxed. When I run calls in Ohio, everything is taxed. I replaced a pump on a DD washer in Toledo yesterday, the bill was just over $220.00. I should be wearing a mask.

Nick

 

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[user=425]nickfixit[/user] wrote:

When I run calls in Michigan, only the parts are taxed. When I run calls in Ohio, everything is taxed. I replaced a pump on a DD washer in Toledo yesterday, the bill was just over $220.00. I should be wearing a mask.

Nick

 

LOL

I feel the same way!

[bTW] Good to see someone so close to home.

:cool:

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