Jack..
This stupid LOOPHOLE was a amendment that was added to the Fl.sales tax law.
When Fl. tried to IMPOSE a sales Tax on all labor...It failed miserably. So this law
was amended to include this ridiculous "tangible tax".... :roll:
It is a complicated tax ...but can be easily avoided.... :!:
Basically, any service vendor can perform ANY labor ..and NOT charge Sales Tax..
BUT, if you apply or add any item to the service . The ENTIRE service ticket becomes
TAXIABLE..."including" the LABOR ..... :shock:
HERE IS AN EXAMPLE : If your truck is overheating...and you take it in for repair...!
If the technician only has to tighten a hose clamp.."THEN THERE IS NO TAX"..
HOWEVER...If the technician has to REPLACE a 25 cent hose clamp...THEN THE ENTIRE
SERVICE IS TAXABLE"..Including his LABOR..
The state of Fl. considers ANY item or Spray-On (protection} as a tangible improvement..
Thus the ENTIRE job is subject to the Fl. SALES TAX... :!:
There are SEVERAL ways to AVOID this TAX.."legally"... :idea: If you wish to know them
give me a call.. 8) Most of these issues can be AVOIDED by simply changing the way
your INVOICE is written... :idea:
EXAMPLE : If you list carpet cleaning @25 cents per sf. & ScotchGard @ 15 cents a sf..
YOU are liable to charge SALES TAX on the "entire service"...
HOWEVER : If you "Clean & Protect" at 40 cents a sf... "you are NOT".... :shock:
Because you have NOT stated a SPECIFIC value to the ScotchGuard. It has
NO "tangiable value"...You can justify that you are GIVING the product away.
Thus it is a GIFT to the client "included" in the package PRICE and NOT subject to TAX !!!
Ps Many Golf Course's here in Fl. "AVOID" Liquor license issues ..Such as the OPEN CONTAINER LAW...& PACKAGE LIQUOR ISSUES By "renting" small coolers with a 6 pack of
BEER for $15.00 ... :!: "The BEER is a GIFT..included in the "Rental Agreement"....
