wirebender
Senior Member
- Location
- North Central Texas
If the GC has to pay sales tax on everything he pays subs, what do I need to do to keep from paying sales tax or getting the money I paid for sales tax back from the state? Thanks.
Texas sales tax
- Thread starter wirebender
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hbiss
EC, New York NEC: 2017
- Location
- Little Falls, New York NEC: 2017
- Occupation
- EC
Re: Texas sales tax
If the GC has to pay sales tax on everything he pays subs...
And I thought NY was bad! Are you telling me that the GC must pay sales tax on the amounts he pays the his subs for labor??
-Hal
If the GC has to pay sales tax on everything he pays subs...
And I thought NY was bad! Are you telling me that the GC must pay sales tax on the amounts he pays the his subs for labor??
-Hal
wirebender
Senior Member
- Location
- North Central Texas
Re: Texas sales tax
That's what the man told me, Hal. I've been doing churches and schools for so long I've gotten out touch with the sales tax laws.
That's what the man told me, Hal. I've been doing churches and schools for so long I've gotten out touch with the sales tax laws.
Re: Texas sales tax
Texas State Sales and Use tax number is what u need..... you are 100percent resposible for paying and or collecting sales tax,,,R show the proper tax forms on file for exemptions on all that you sell...... if you didnt charge him and or have an exempt form(this form would be for the contractor of question, showing hes a sales tax number holder, and didnt pay at time of purchase from u,,,) on file then you may be digging! you need to contact the State Comptrollers office and ask some questions! so heres the deal,,,,say u sold him 1000 bucks of supplies, u should have charged him 82bucks or so for sales tax,,if not, he would have to provide you with a sales tax exempt form(showing hes a tax number holder and will deal with it himself,,,,relieving you of any tax duty!) so, before you pay, call, and get all the facts.....good luck
Texas State Sales and Use tax number is what u need..... you are 100percent resposible for paying and or collecting sales tax,,,R show the proper tax forms on file for exemptions on all that you sell...... if you didnt charge him and or have an exempt form(this form would be for the contractor of question, showing hes a sales tax number holder, and didnt pay at time of purchase from u,,,) on file then you may be digging! you need to contact the State Comptrollers office and ask some questions! so heres the deal,,,,say u sold him 1000 bucks of supplies, u should have charged him 82bucks or so for sales tax,,if not, he would have to provide you with a sales tax exempt form(showing hes a tax number holder and will deal with it himself,,,,relieving you of any tax duty!) so, before you pay, call, and get all the facts.....good luck
hbiss
EC, New York NEC: 2017
- Location
- Little Falls, New York NEC: 2017
- Occupation
- EC
Re: Texas sales tax
Well, the only way to get the answers to your questions is to go right to the horses mouth- the state tax commission. They will be able to tell you what you should be doing and what you need to do. As an alternate an accountant will be able to advise you also. This actually might be a better idea because if you should have been doing something sales tax wise (and you haven't been) talking to the tax people would tip them off.
I still find it impossible to believe that sales tax is due on money paid to subs on a construction project. In NY, and anywhere else I am familiar with, a construction project is a capital improvement. Sales tax is only paid on the materials by whoever buys them at the time they are purchased.
EC's here should be collecting sales tax on any repairs that they do and consequently no tax need be paid on the materials used for those repairs when we purchase them.
If the job is a capital improvement or for a non-profit organization we pay the tax on the materials at the supply house and charge the customer no tax.
The latter would be your situation and if what you are saying is true YOU would be responsible for adding the tax to your bill and YOU would remit it to the state, NOT the GC taking out of what he owes you. If you ask me this sounds awful fishey but I could be wrong.
Ask your accountant if this is legit and what you should be doing as far as sales tax is concerned.
Edit: Yes, what CS49 says sounds like the same situation as here. I left out that there are sales tax forms to be given all around. If you don't have a valid certificate from the owner or GC then you have to charge them tax.
-Hal
[ July 09, 2004, 09:17 PM: Message edited by: hbiss ]
Well, the only way to get the answers to your questions is to go right to the horses mouth- the state tax commission. They will be able to tell you what you should be doing and what you need to do. As an alternate an accountant will be able to advise you also. This actually might be a better idea because if you should have been doing something sales tax wise (and you haven't been) talking to the tax people would tip them off.
I still find it impossible to believe that sales tax is due on money paid to subs on a construction project. In NY, and anywhere else I am familiar with, a construction project is a capital improvement. Sales tax is only paid on the materials by whoever buys them at the time they are purchased.
EC's here should be collecting sales tax on any repairs that they do and consequently no tax need be paid on the materials used for those repairs when we purchase them.
If the job is a capital improvement or for a non-profit organization we pay the tax on the materials at the supply house and charge the customer no tax.
The latter would be your situation and if what you are saying is true YOU would be responsible for adding the tax to your bill and YOU would remit it to the state, NOT the GC taking out of what he owes you. If you ask me this sounds awful fishey but I could be wrong.
Ask your accountant if this is legit and what you should be doing as far as sales tax is concerned.
Edit: Yes, what CS49 says sounds like the same situation as here. I left out that there are sales tax forms to be given all around. If you don't have a valid certificate from the owner or GC then you have to charge them tax.
-Hal
[ July 09, 2004, 09:17 PM: Message edited by: hbiss ]
Re: Texas sales tax
In Texas, its the state comptroller who handles the sales taxes.........most large cities in texas has an office which he can go to for anwsers....he doesnt have to give his self up, just go in and ask what one needs to do etc....... as before, if your doing business in texas, u need a tax number for sales / use tax...and its up to you to collect and pay it or show the exempt forms as to where it went.....best of luck....if your using any sort of tax accountant for your federal part, then they should be able to help u...
cs409
In Texas, its the state comptroller who handles the sales taxes.........most large cities in texas has an office which he can go to for anwsers....he doesnt have to give his self up, just go in and ask what one needs to do etc....... as before, if your doing business in texas, u need a tax number for sales / use tax...and its up to you to collect and pay it or show the exempt forms as to where it went.....best of luck....if your using any sort of tax accountant for your federal part, then they should be able to help u...
cs409
hbiss
EC, New York NEC: 2017
- Location
- Little Falls, New York NEC: 2017
- Occupation
- EC
Re: Texas sales tax
he doesnt have to give his self up, just go in and ask what one needs to do etc....... as before, if your doing business in texas, u need a tax number for sales / use tax...
Same here but I'll tell you a story.
A friend of mine, also an EC, has been in business for about 30 years. A little while ago he tells me about a customer of his (a school) that wants him to include sales tax on all his repair billing. Seems this guy never charged sale tax for anything because he never registered for a sales/use tax number back on day one. If he applies for one now there is a good chance that the those nice tax people will say "where have you been all these years?" He SHOULD have been collecting tax on all the repair work he did for the last 30 years. Now, the state auditors are very good at knowing what an EC of his size does in repair work per month or per year and I don't want to even THINK about what his liability might be with penalties and interest after all these years.
-Hal
he doesnt have to give his self up, just go in and ask what one needs to do etc....... as before, if your doing business in texas, u need a tax number for sales / use tax...
Same here but I'll tell you a story.
A friend of mine, also an EC, has been in business for about 30 years. A little while ago he tells me about a customer of his (a school) that wants him to include sales tax on all his repair billing. Seems this guy never charged sale tax for anything because he never registered for a sales/use tax number back on day one. If he applies for one now there is a good chance that the those nice tax people will say "where have you been all these years?" He SHOULD have been collecting tax on all the repair work he did for the last 30 years. Now, the state auditors are very good at knowing what an EC of his size does in repair work per month or per year and I don't want to even THINK about what his liability might be with penalties and interest after all these years.
-Hal
wirebender
Senior Member
- Location
- North Central Texas
Re: Texas sales tax
Thanks for the info, I think. I'll check with an accountant next week if they don't get me first. (not cool, incognito,paranoia runs deep)
Thanks for the info, I think.
I'll check with an accountant next week if they don't get me first. (not cool, incognito,paranoia runs deep)Re: Texas sales tax
starting the new company is the Right thing to do,,,,,,this way if they snoop, they will find and then the fun hurts LOL.......a friend of mine owed 800bucks after an audit,,,it was due to his free candy and also his soda machine which he didnt include in his sale tax collection! thats right, he bought all with his exempt number and never thought first hand about paying the USEage tax which the candy fell under! the soda machine! (this sales tax on the above was due to a 3yr oversite) as i stated,,,,,u can get some major info from the comptroller, but use someone name other than yours, if they ask!. i for one can say i had a freeze put on my bank account due to sales tax owed and not filed/paid in a timely manner.......as stated above by hbiss, it isnt yours, but you can become the fine owner of penalties/interests LOL.....i bet you didnt know that as a business owner that you also become a tax collector!
[ July 11, 2004, 01:20 AM: Message edited by: cs409 ]
starting the new company is the Right thing to do,,,,,,this way if they snoop, they will find and then the fun hurts LOL.......a friend of mine owed 800bucks after an audit,,,it was due to his free candy and also his soda machine which he didnt include in his sale tax collection! thats right, he bought all with his exempt number and never thought first hand about paying the USEage tax which the candy fell under! the soda machine! (this sales tax on the above was due to a 3yr oversite) as i stated,,,,,u can get some major info from the comptroller, but use someone name other than yours, if they ask!. i for one can say i had a freeze put on my bank account due to sales tax owed and not filed/paid in a timely manner.......as stated above by hbiss, it isnt yours, but you can become the fine owner of penalties/interests LOL.....i bet you didnt know that as a business owner that you also become a tax collector!
[ July 11, 2004, 01:20 AM: Message edited by: cs409 ]
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