Charging Taxes on materials to customers

[supervisorrick]

In the state of Florida, is a service company suppose to charge taxes on service jobs for materials for use on the job in a customers home such as AC or appliance repair that required only labor and did not need a manufacture part replacement?

For example: Fixed broken wire in an AC. But used extra wire nut to solve issue. Repair company provided wire nut that they purchased from a supplier.

Another example: Service company welded a leak in a copper line with an oxygen and acetylene tank and added solder.

 

[FlyingRon]

On things that are part of the house (built in appliances), I think you're fine. Anything that is part of personal property (or is attached to or can become it), like a portable unit, has to remit sales tax on any materials EVEN if you don't charge the customer for it. Of course, a single wire nut has to be down in the noise. There's no tax on things less than a dime.

 

[Zigner]

On things that are part of the house (built in appliances), I think you're fine. Anything that is part of personal property (or is attached to or can become it), like a portable unit, has to remit sales tax on any materials EVEN if you don't charge the customer for it. Of course, a single wire nut has to be down in the noise. There's no tax on things less than a dime.

Strange - I paid 11¢ for the last 10¢ doohicky I bought

 

[FlyingRon]

10 cents is not less than a dime.

 

[Zigner]

In Santa Fe Springs, CA, you'll pay 10¢ for the 9¢ item (sales tax rate of 10.5%). Same goes for the several cities with a tax rate of 10.25%.

And, what if I buy 1,000 items priced at a penny each? You'd better believe I'll be paying sales tax.

 

[FlyingRon]

Florida has tax tables. 10 cents is one cent tax. Below 10 cents, no tax. This is true on all the rates from 4% up to 8%.

 

[Zigner]

Florida has tax tables. 10 cents is one cent tax. Below 10 cents, no tax. This is true on all the rates from 4% up to 8%.

Is the tax applied to the item, or the aggregate? Like my example, if you buy 1,000 pcs of a 1¢ nut all in one transaction, are you going to pay tax on the purchase?