Sales Tax on Labor in Florida?

[BandB]

Originally Posted by Stu Jackson

Could someone explain why the question was about FL but the answers are about TX?

The initial question was long ago answered and the applicable Florida law quoted. The discussion then evolved into the varying sales tax laws of different states. I think the main point was that what is true in Florida may not be true in other states. Wisconsin was actually introduced to the discussion before Texas.

[Boatguy30]

So I supplied the fabric, the main material shaped, welded, punched, etc.

Does that change things? I am happy to pay the tax on the foam and perhaps the labor to cut the foam.

We do not have a GST in the US. I personally don't care for consumption taxes, but again not looking to get into a tax debate. It was my understanding that most states don't tax labor. Funny how those that do seem to hit the lower wage guys and not the "professional" services.

[letsgetsailing3]

I think the people doing the work for you already gave you the answer.

Oh, and if you use Amazon, you've probably noticed they now charge sales tax in Florida, too.

[tdoster]

Originally Posted by Stu Jackson

Could someone explain why the question was about FL but the answers are about TX?

Thanks, Gord, for the real answer.

Because the tax laws are very similar in Texas and Florida and the point is it is becoming more common than people think.

My point is we usually just build it into the price and pay the City/State instead of having arguments such as this. Sorry, it is a sign of the times, if it moves, TAX it. If you can't tax it, fee it.

You have no idea how hard it is to run a small business today and how much it has changed in just the past 20 years. By talking about it, everyone else gets educated and does not beat up the company that charged the tax because we just send it off to the taxing authority.

There is no greater offense than charging tax and not sending it to the taxing authority, so a company would be short lived to do so. Taxes are nothing to mess with for a small business.

[Boatguy30]

Certainly, I don't believe she is pocketing the tax. My only point was I believe she did not to charge tax on the full amount. Certainly the time spent in my shop measuring the boat would not be taxed. Only labor in her shop. Anyway, the cushions turned out great. Will just pay up.

[BandB]

Originally Posted by Boatguy30

So I supplied the fabric, the main material shaped, welded, punched, etc.

Does that change things? I am happy to pay the tax on the foam and perhaps the labor to cut the foam.

We do not have a GST in the US. I personally don't care for consumption taxes, but again not looking to get into a tax debate. It was my understanding that most states don't tax labor. Funny how those that do seem to hit the lower wage guys and not the "professional" services.

Once they supplied and cut the foam, everything is taxable. Think of it this way, "It's all taxable unless there's a specific exclusion met to make it non-taxable. Also, it's pretty much an all or nothing situation. People have been known to try to break it into multiple jobs and those people have been known to pay heavy penalties as a result.