[Unique Granite]

Hi Everyone,

I am new to the forum, I just opened up a new company in Georgia and I had a few questions before I start working with the public as of now we only work with contractor who have a tax exempt. However we will soon be servicing consumers, does anyone know what we can tax and what we can not? Such as fabrication? taxable or not? Removal? Sinks? Etc.. Thanks for any responses in advance.

[David Gerard]

where i live our sales tax must be charged for any service or item that is part of the house. We have a max cap that tops at a 500.00 sale.

[Tom M]

That’s very interesting, David, having a cap.

Unique Granite, in our state you tax the items but not the installation. If you perform a service, such as a resand or repair, you will tax it all.

[Unique Granite]

I had a customer give me one of my competitors estimates, on a $4,000 sale they are taking around $50 in tax. I have tried to figure out how. From what they have told me you only charge tax on the products and not services. So edges, cut outs, etc. would be excluded from tax

[Unique Granite]

So do I only charge taxes on the material and sink? cause the rest would be just labor. Thanks for your reply.

[Unique Granite]

Here is an overview of their quote:

Granite Group 1 Color – $3,393

Pencil Edge – $0.00
Cut Out Kitchen Sink – $175
87 Sq. Ft. Removal – $565.50
26.87 Sq. Ft. Removal (backsplash) – $228.40
Cooktop cutout – $65

Subtotal: $783
Discount: $78.30
Tax: $49.33
Non Taxable Subtotal: $3643.90
Non taxable discount: 364.39

Total: 4033.54

@Tom looking at it, it seems as if they are only charging tax on their sink and the slab.

[David Gerard]

We also have a  “In city limits and out of city limits”

in city is  7.5 %, max tax at 500.00 is $37.50

out if the city is 3 %,   max tax at 500.00 is $ 15.00

if you are building a new place or a substantial remodel then you can get a “Home Owner Tax card” for $200.00.  It is good for 1 yr.  You present it to any contractor doing work or any supplier, no tax is charged.  You have paid it up from.  It is a huge savings.

[John Christensen]

I would strongly recommend enlisting the help and advice of a local CPA for these matters.

I suspect that guessing wrong could be costly.

Johnny C

[Andy Graves]

It is different for each state.

Contact the local government agency and make them put it in writing. You may also have to get a resellers license.

Be very careful because it is unlawful to charge tax when you are not supposed to and it is your responsibility to pay the tax even if you didn’t collect it at time of sale.

Let us know what you find out.

[Wags]

I agree, speak with a CPA that handles construction type companies. Depending on where your selling, you may have to pay taxes to different cities also. Some area’s do tax certain “services” besides materials.

David that’s a very interesting tax code you folks had…wish everyone was as fortunate.

And Andy your 100% correct. Even if the state gives you advice and it’s wrong, your libel . And it is only going to get worse as the financial crisis with governments worsens.

[Un-Authorized]

Posted By John Christensen on 10 Feb 2012 02:15 PM
I would strongly recommend enlisting the help and advice of a local CPA for these matters.

I suspect that guessing wrong could be costly.

Johnny C

Ding!Ding!Ding! we have our winner.

Joe

[Unique Granite]

I appreciate all the responses. I am going with the CPA option. Thanks for all the advice.

[Steve Mehan]

You need to go to the Georgia department of taxation website. Download the publication on sales and use taxes. Also you may contact them and talk with an auditor about your tax liability. A cpa should be able to explain this for you however the publications will explain in detail what you are responsible for. We have been through audits before and having the publications is very helpful.

[WOWKACUI]

We have a max cap that tops at a 500.00 sale………

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