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I know that I have to pay sales tax on snowplowing in NYS, my question is that I will be putting in some large seasonal bids next summer,ex. $50,000 plus, and was wondering if you include sales tax in your large bids or do you add it on the end? On some of the bids I will be giving that is some serious $ to add if I include it. Or does it depend on the company? Any comments from anyone that does big work would be greatly appreciated.:huh
 

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I bid what I need to make, then add sales tax to it. So if 50g is what you need to make, then it's 50g plus tax.



Everett
 

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I would include it in the bid- but as a separate line item so that it is explained when they go over the proposal. I plan on writing up a large bid myself- and the snow removal alone is going to be close to $45-50k- before ice control. Then I also have to price out the lawn care and garden care as well.


Bill
 

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The state Sales Tax should never be "included". Do you pay your neighbor's sales taxes every time they buy a product or service that is taxed? Why should you pay that for your clients then? You are simply an Agent for the State, who collects their tax for them, and then sends that money to them. Your clients know that. If you include the sales tax in that $50,000.00 seasonal contract, here's what happens. ( I'll use 7% in this example, because I think that's the number for NY) The Client will pay you $50.000.00. You will put $46,729.00 in your bank account (and this is the amount you will actually have to charge them for the contract), and send $3,271.00 to NY. If you charge your client the 50 grand, they will send you $53,500.00 and you will put $50,000.00 in your bank account & send $3,500 to NY. Does that answer your question LOL?

Now, if you are asking whether you should show what the tax is on the proposal, that is certainly the courteous thing to do IMO. If the client contact doesn't have to think about that or break out the calculator, they might be a little happier when looking it over. Possibly.
 

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I write all my bids/quote as "+ NYS sales tax"

If you include it and your competitor doesn't, your number may be higher but in actuality your bid lower. Don't take a chance that someone may misread your quote, if it's spelled out properly, you can add it to your bill.
 

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BRL- that is what I was refering to when I said as a separate line item-

ie... Total bid $50,000.00
Tax @7.25% $3625.00
Grand Total $53625.00

In Oswego County its 7.25% - combined County/State Tax
State is 4% plus your local county taxes.

I always include the tax on the bid- but what I do is include a summary page that shows all the charges and what the grand total is so that way the customer is not surprised by the bill should they agree to the bid and hire me for my services. I had to do some research to double check and snow removal is a taxable item and requires you to get a sales tax vendor certificate. Oh boy- more paperwork! Lol!!

Bill
 

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I'm with Pelican, my quote is the amount " plus tax". That way the grand total doesn't scare away someone if the bids are tight.

On a similar note, I know of a few guys that don't collect, or pay, sales tax. Those are the small "one man" operations that plow as a side line to their regular jobs. Sure makes it tough to compete on some of the smaller jobs.
 

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I'm with most of the guys on here.
It's what ever the bid is + NYS sales tax.
It goes on another line that spells out the rate(for Rensselaer county it's 8.25%) and the amount of tax due on all proposals.

Dan
 

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I just simple quote each job in a specific amount plus NYS sales tax. It is illegal (at least for NYS) to include sales tax into one price.
 

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I believe that in NY, according to the rules that govern contracts, the Federal Trade Commision, etc. ... sales tax MUST be included.
It may be list as a seperate "line item", but it has to be stated in the contract.
Just something I remeber reading of the county or FTC website.
 

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I'm not aware of any state or FTC regulation regarding sales tax specifically being stated. If thats the case I wish you could find it. We have been in business for almost 30 years in NY. We never include sales tax in our proposals, estimates, or contracts, only on the actual invoice.
 
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