At end of job he adds sales tax to the job total and you pay him.
If a sub contractor works directly for the homeowner then they must charge sales tax.
At the end of the job you are charged sales tax for what ever the amount is no matter what the cost was for materials or labor.
To make sure you aren't being over charged go to this link look for where you live.
http://dor.wa.gov/Docs/forms/ExcsTx/LocSalUseTx/LocalSlsUseFlyer_12_Q3_alpha.pdf
Then look for the combined local and state rate.
Find that total then times it by your total amount of job and you can be sure you aren't getting ripped off.
About twice a year I get a complaint about why sales tax is involved and I completely understand that.
I had one client years ago start screaming at me his face got so red I thought he was going to have a heart attack. I had to quickly inform him I hate it just as much as he does.
Isn't double taxation illegal?
Not in the State of Washington where they've never met a tax they didn't want to raise.
Here is how it works.
I go to Home Depot buy 5 boxes of mud, sand paper, masking tape.
When at check out I say tax exempt only on the 5 boxes of mud.
Yet, even though the rest of the materials you are paying for just like the mud in order to provide a service the State says because the sand paper and masking tape doesn't stay on the job I have to pay sales tax. GRRRRRRRRRRRRRRRRRRRRR!!!
At end of job my costs are my labor plus the mud, sand paper, masking tape, etc.
I pay SALES TAX on the total job cost what I figured in my bid to you thus double taxation!
Yet, other services in Washington State don't charge sales tax.
Quite confusing but then again a politician thought this all up.
Hope this helps.
Use that sales tax link so you don't get over charged.
Every dollar counts these days.
Drywall By Greg
Water Damage • Cracks • Patches
Smooth Finish • Texture • Remodels
Fully Insured * Cont. Lic. DRYWAG*915PR
Greg Richardson
I once thought it would be fun to drywall my house in Calgary by myself, then I rethought that and had somebody else come in and do it for me. It was a good decision.
ReplyDeleteHi Jared. I hear you there. We are currently re-doing one of the kids bedrooms who moved out. I had thought about doing the carpet myself. Then after looking at tools and the fact I'd have a seam to deal with I believe the money spent on a professional be well worth it and whole lot stressful.
DeleteI have done so many repairs of other contractors and homeowners work I thought hey what am I doing do I want to pay twice too?
That last sentence in first paragraph at the end should read whole lot less stressful.
ReplyDelete