# Sales Tax??



## EMINNYS (Nov 29, 2010)

I have never charged sales tax on a job. This week I was given an estimate by a roofer for a new roof on a house that I own. He gave me the price and said....plus tax. Am I missing something?? I know that if the job is considered a repair in NY you are allowed to charge sales tax, but this would not be a repair.. If I am missing something please set me straight on my ignorance.:huh::huh::huh::huh:


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## Mellison (Aug 3, 2008)

Here is the Holy Grail: http://www.tax.ny.gov/pdf/publications/sales/pub862_401.pdf

Page 24.


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## EMINNYS (Nov 29, 2010)

Mellison said:


> Here is the Holy Grail: http://www.tax.ny.gov/pdf/publications/sales/pub862_401.pdf
> 
> Page 24.


 
Excellent Info . My head is spinning now. The way I read that the answer is no sales tax . However, I have never asked for an exempt form or supplied one for that matter.... How about the rst of you?????:blink::blink::blink::blink::blink:


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## Leo G (May 12, 2005)

I can't say anything about NY, but in CT any capitol improvement on a residential home is not taxable. All commercial properties are taxable.


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## EMINNYS (Nov 29, 2010)

Leo G said:


> I can't say anything about NY, but in CT any capitol improvement on a residential home is not taxable. All commercial properties are taxable.


 
Leo, Thats how I've been taught in NY as well, but the conversation I had with this roofer (Whom I know to be legit) had me wondering. Then after reading the helpful brochure that was posted, I have become even more confused.(Which is easily done these days).:w00t::w00t::w00t:


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## Framer53 (Feb 23, 2008)

The law in NY is the same as Conn.

Your roofer is just wrong. you may have to fill out a certificate for capital improvement, but other than that you owe no one tax except on the materials.

Either the roofer doesn't know what he is doing or he is pulling a fast one. Move on and find another roofer.


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## avguy (Feb 8, 2010)

Framer53 said:


> you owe no one tax except on the materials.


That would make sense in the original context.


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## Splinter (Apr 5, 2005)

It seems that NYS considers a full tear off and replacement a capital improvement, but if you're just installing a new layer over the existing, then it's considered maintenance and installation, which is taxable.

NYS tax code is such a confusing pain in the ass that I bet the roofer just doesnt know and charges everyone sales tax to play it safe. (at the expense of his customers) I've seen that happen often enough around here.


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## TxElectrician (May 21, 2008)

EMINNYS said:


> I have never charged sales tax on a job. This week I was given an estimate by a roofer for a new roof on a house that I own. He gave me the price and said....plus tax. Am I missing something?? I know that if the job is considered a repair in NY *you are allowed to charge sales tax,* but this would not be a repair.. If I am missing something please set me straight on my ignorance.:huh::huh::huh::huh:


Any time I have charged sales tax was because I was obligated too, not because I was allowed.


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## svronthmve (Aug 3, 2008)

Most contractors here in NY that I've talked to stare at you blankly when mentioning a capital improvement tax form. If you ever get audited, you better have it on file, or as the contractor you're obligated to pay the tax due. I've talked with 2 accountants lately, and business audits are apparently UP BIG TIME here in NY. We're broke so they're trying to turn over every rock they can. I've always attached them as part of every proposal, so the customer signs it then.

On the converse side, taxing home repairs is just another way NYS double/triple dips into our pockets. As the contractor, I pay sales tax on the materials when I buy them. Then I have to charge sales tax on the labor & materials (which of course contains the cost of the sales tax I paid!) to the customer. So they're getting tax on tax......Some might call it legalized extortion???


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## Framer53 (Feb 23, 2008)

On the converse side, taxing home repairs is just another way NYS double/triple dips into our pockets. As the contractor, I pay sales tax on the materials when I buy them. Then I have to charge sales tax on the labor & materials (which of course contains the cost of the sales tax I paid!) to the customer. So they're getting tax on tax......Some might call it legalized extortion?
>>>>>>>>>>>>>>>

Incorrect.

If you collect sales tax you have a tax ID number. All you do is inform whomever you are buying material for repair from, fill out a form and you don't pay tax.

You are missing the biggest burn there is.. That is you pay to collect and remit the tax you collect to the state. That Tax id costs money as of a couple of years ago. Dumb.....



one other incorrect info. A roof is a capital improvement either if you overlay or strip. Just fill out the form. 

I know, because I have been audited and passed.:thumbsup:

We do have a messed up tax situation in this state, but it is not as bad as the above think.

One other little tidbit. Do you employers in NY have a certificate that allows you to pay employee by check? If you don't, there is a fine involved....


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## wellbuilt home (Oct 22, 2007)

I get subs charging sales tax all the time . 
The last one was new hard wood flooring in whole house .
New roof is not taxable in nys . 
Alot of guy around here charge HO sales tax .
John


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## mrmike (Dec 9, 2008)

Framer53 said:


> On the converse side, taxing home repairs is just another way NYS double/triple dips into our pockets. As the contractor, I pay sales tax on the materials when I buy them. Then I have to charge sales tax on the labor & materials (which of course contains the cost of the sales tax I paid!) to the customer. So they're getting tax on tax......Some might call it legalized extortion?
> >>>>>>>>>>>>>>>
> 
> I have been charging sales tax on material & my labor since I have started my business 5 yrs ago. I was told I was required to becuase it was all considered home repair that I was doing.
> ...


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## Framer53 (Feb 23, 2008)

mrmike said:


> Framer53 said:
> 
> 
> > On the converse side, taxing home repairs is just another way NYS double/triple dips into our pockets. As the contractor, I pay sales tax on the materials when I buy them. Then I have to charge sales tax on the labor & materials (which of course contains the cost of the sales tax I paid!) to the customer. So they're getting tax on tax......Some might call it legalized extortion?
> ...


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## Framer53 (Feb 23, 2008)

wellbuilt home said:


> I get subs charging sales tax all the time .
> The last one was new hard wood flooring in whole house .
> New roof is not taxable in nys .
> Alot of guy around here charge HO sales tax .
> John



Did you straighten the sub out John? Hardwood flooring is a capital improvement, not taxable.

It is confusing!

Dave


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## mrmike (Dec 9, 2008)

Framer53 said:


> mrmike said:
> 
> 
> > Depends. A capital improvement is not taxable. If you are repairing something, taxable. If you are building on or redoing a kitchen, no.
> ...


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## 11678 (Jan 11, 2007)

To clarify, you collect sales tax not charge.
In NJ, a ST-8 is the Capital Improvement form that is filled out by the customer for a capital improvement. Have to keep on file for 3 years.


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## EMINNYS (Nov 29, 2010)

WOW......Great to see all of the NYers.....

Ironically I had my taxes prepared today, and when I was done I asked the cpa about this. I was correct in never charging sales tax on the labor of a capital improvement......HOWEVER....he told me that I should always have the homeowner fill out the exempt form, so that if I get audited, I will be covered. That is some valuable information and a horrible oversight by me. It figures.. when I first started my business my sister (a cpa) was doing my taxes and never informed me of this.....I got rid of her as a cpa, after a few years. Lesson Learned.

Thanks again NYers:thumbsup::thumbsup::thumbsup::thumbsup:


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## EMINNYS (Nov 29, 2010)

By the way my daughter told me that she got 24" of snow in Plattsburgh last night. We are finally seeing the grass here for the first time in quite awhile


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## Framer53 (Feb 23, 2008)

We ended up with 18"s. 

Talked to a customer in Lake Placid and they had 2'


Man, I wish spring would come!!!!


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