I have had the same problem just once (so far), only it was a face to face confrontation. My residential client swore up and down that she had never paid sales taxes on any cleaning service and said she thought I was trying to cheat her. I stood my ground and explained that I own and operate a window cleaning company. In Texas, any business that provides real estate services, such as window cleaning, must collect sales tax according to state law. Having me come to work for her was no different than hiring a carpet cleaning company, a plumber, A/C repairman, etc. They all charge sales taxes and so did I. She paid.
According to the State of Texas ( http://www.window.state.tx.us/taxinfo/taxpubs/tx94_111.html) , "If you operate a maid, janitorial, or custodial service, you should be collecting sales and use tax...Tax is due on the charge to clean a home, office, warehouse, garage, restaurant, or any other building. For example, you should collect tax on your charges for cleaning and straightening; washing windows, floors, walls, and ceilings; cleaning chimneys or air ducts; replacing light bulbs or fuses; picking up trash indoors or outdoors; and cleaning swimming pools."
Also according to the State of Texas, "An individual who cleans residential property is considered an employee of the household and the service is not taxable. This individual has to be self-employed and cannot have employees nor be a subcontractor for a third party such as a maid service. This may be how some of your clients view you - self-employed, no sales tax due or required.
If they were my clients, I would politely dun them in writing for the missing sales taxes. I would include a copy of the original invoice. I would include a copy of the check they sent (to show what they actually paid and how much in taxes they still owe), if possible. I would include verbage from the State Comptroller's website demonstrating that you are legally bound and required by law to collect these taxes from them for services rendered. I would send the letters via certified mail and keep notarized copies of the letters on file. If you bank with Bank of America, their notary services are usually free.
Hope this helps.
Regards,
Paul Kerr
Care Free Window Washing, Inc.
Bedford, Texas
----- Original Message -----
Sent: 12/9/2005 9:45:42 AM
Subject: Re: [World] Sales Tax Collection
It is stated on the invoice the amount of the cleaning, the amount of the sales tax, and the total amount circled on the bottom by Pay this Amount. They just plain ignore it. ,
----- Original Message -----
Sent: Friday, December 09, 2005 9:18 AM
Subject: RE: [World] Sales Tax Collection
I'm not understanding something about your question. Are they not paying the sales tax because it is not on the bill (and they are supposed to add it on themselves) or are they ignoring the sales tax that you write on the bill?
You may want to state that the "Sales tax is included" and then raise you prices by that percentage.
If your billing is not clear what the total is (including sales tax), you may want to write something like "Please make check payable for the amount of $$$." or circle the amount with a bright colored pen.
To resolve the issue, I would make phone calls to those customers where the sales tax was written clearly on the bill. If it wasn't, I think you are going to have to eat the loss.
Richard Berry
Richard Berry Enterprises
San Diego, Ca.
This is your problem, but not your fault. I think a phone call would be better, as it won?t cost anything but your time. I wouldn?t worry about hassling someone who should see that their omission is the problem, not the phone call.
If you have this problem repeatedly, I would consider giving a ?taxes included price? (boost the end price to include sales tax) so there is no possible confusion on the numbers.
Hope this helps.
John Riley,
President,
Rileys' Window Cleaning
(416) 421 5758
In Service to Toronto Since 1956
www.mywindowcleaner.ca
Member of the BOD of
The Ontario Window Cleaning Association.
Member of the Master Window Cleaners of America.
From: addressis@removed [mailto:addressis@removed On Behalf Of Brent Moore
Sent: December 9, 2005 8:30 AM
To: addressis@removed
Subject: [World] Sales Tax Collection
I seem to be having a much repeated problem with Sales tax collection. In person it is never a problem, however I leave many invoices in the course of a month. The number that come back without sales tax is annoying. In the past I have done nothing about it, but it adds up after a while. I would like your input about the following thoughts.
1. Mailing a return letter explaing my responsability to collect state (texas) sales tax. and invoice for the proper amount.
2. What are the odds of "ticking" someone off for causing them to write another check. Most customers (residential) are more bothered by "hassles" than the monitery value.
3. Doing nothing about it. I know it adds up, but marketing a residential service is directed to a Luxurious living, resulting in a well paying job, which creating, and annoyance (from the customers ppoint of view) may cost a customer.
I am leaning towards sending some type of return letter, but wonder if the "experience' of this group has learned lessons already worth sharing..
Clean View Window Cleaning
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