Car Shop Charging Tax on Labor???

S65NAPWR · 11-29-2012, 07:54 AM

Guys - just need a quick opinion, have you ever heard of a car shop charging tax on labor? I know parts for sure, but labor? Doesn't seem right to me.

JYohay · 11-29-2012, 09:15 AM

yes they do
but you can always negotiate to pay cash so you do not have to pay tax

Raja Ventureshield · 11-29-2012, 09:25 AM

it's better than them trying to charge your business license fee on a new car. I am like REALLY. you want to charge me license to sell a car to me fee? no thanks, went to another dealership. It was 2xx$ or so.

fuddman · 11-29-2012, 09:50 AM

By and large, your state laws tell the businessman what products he sells that he must collect taxes on. You need to check with the state bureau that implements those laws. Here in California, it's the Board of Equalization which , incidentally, does not require taxes be collected on labor. At least not yet.

nbennettksu · 11-29-2012, 11:20 AM

if there are any parts on the ticket, then labor gets taxes as well. If its just something like an alignment where its purely labor, not tax should be generated.

S65NAPWR · 11-29-2012, 11:25 AM

Thanks everybody, at least it's not complete highway robbery. I total question it because other shops in the same area don't charge tax on labor.

baxter3221 · 11-29-2012, 12:12 PM

My experience has been the same as others have mentioned, tax is charged on the total cost of the parts and labor.

Reznick · 11-29-2012, 12:21 PM

NY state YES on parts and labor

nbennettksu · 11-29-2012, 12:31 PM

Also, if there are any "shop charges", there will be tax on the labor.

Marco@McKennaPerformance · 11-29-2012, 04:22 PM

We have never charged clients tax on labor. You should only be taxed on parts

Endless619 · 11-29-2012, 04:25 PM

Quote:

Originally Posted by S65NAPWR

Guys - just need a quick opinion, have you ever heard of a car shop charging tax on labor? I know parts for sure, but labor? Doesn't seem right to me.

Move to Oregon, no such thing as tax. lol

PrimoM3 · 11-29-2012, 06:50 PM

Quote:

Originally Posted by Endless619

Move to Oregon, no such thing as tax. lol

No sales tax, that is. And, the tradeoff is living in a state where it rains 8-9 months/year and they have no major league football or baseball teams. Just saying...

(Former Portland, OR resident)

Back on topic: Taxes suck, but at least we're not in France.

DBH · 11-29-2012, 07:42 PM

It depends on local & state laws.

The states of NY, CT and PA levy a sales tax on labor.

mdosu · 11-29-2012, 10:56 PM

state and location dependent.... most have tax on certain labor and services.

mdosu · 11-29-2012, 10:57 PM

Quote:

Originally Posted by PrimoM3

No sales tax, that is. And, the tradeoff is living in a state where it rains 8-9 months/year and they have no major league football or baseball teams. Just saying...

(Former Portland, OR resident)

Back on topic: Taxes suck, but at least we're not in France.

you got the Ducks....

PrimoM3 · 11-30-2012, 12:22 AM

Quote:

Originally Posted by mdosu

you got the Ducks....

Would you believe I'm a Beavers fan!?

Great video tho.

folgrz · 11-30-2012, 04:31 PM

Quote:

Originally Posted by PrimoM3

Would you believe I'm a Beavers fan!?

Great video tho.

Well who doesn't love some beaver?

carbon//m3 · 11-30-2012, 05:18 PM

Quote:

Originally Posted by Marco@McKennaPerformance

We have never charged clients tax on labor. You should only be taxed on parts

That has been my experience as well.

positiveions · 11-30-2012, 09:13 PM

In Cali, no tax on labor.

11-29-2012, 07:54 AM	#1
S65NAPWR Lieutenant Drives: M3 Join Date: Feb 2012 Location: Tri-State Posts: 555 iTrader: (0)	Car Shop Charging Tax on Labor??? Guys - just need a quick opinion, have you ever heard of a car shop charging tax on labor? I know parts for sure, but labor? Doesn't seem right to me. __________________
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11-29-2012, 11:25 AM	#6
S65NAPWR Lieutenant Drives: M3 Join Date: Feb 2012 Location: Tri-State Posts: 555 iTrader: (0)	Thanks everybody, at least it's not complete highway robbery. I total question it because other shops in the same area don't charge tax on labor. __________________

11-29-2012, 12:12 PM	#7
baxter3221 VT1-550 Drives: 2008 E92 M3 Join Date: Jun 2010 Location: Queens, NY Posts: 61 iTrader: (1)	My experience has been the same as others have mentioned, tax is charged on the total cost of the parts and labor. __________________

11-29-2012, 10:56 PM	#14
mdosu Help! Can't decide btw MW & AW, 1st world problems Drives: 2008.99989 SSII E90 "Civic" Join Date: Oct 2009 Location: Northern Virginia Posts: 5,958 iTrader: (4)	state and location dependent.... most have tax on certain labor and services. __________________ Yes, that's a xmas tree in my trunk

11-30-2012, 09:13 PM	#19
positiveions Major General Drives: 09 MKV JETTA 2.5 & E90 M3 :) Join Date: Sep 2007 Location: La Verne, CA Posts: 8,858 iTrader: (1)	In Cali, no tax on labor. __________________

11-29-2012, 09:15 AM	#2
JYohay Captain Drives: 335i convertable Join Date: Mar 2012 Location: NY Posts: 978 iTrader: (0)	yes they do but you can always negotiate to pay cash so you do not have to pay tax

11-29-2012, 09:25 AM	#3
Raja Ventureshield Brigadier General Drives: BMW M3 coupe Join Date: May 2007 Location: Northern VA Posts: 4,551 iTrader: (6)	it's better than them trying to charge your business license fee on a new car. I am like REALLY. you want to charge me license to sell a car to me fee? no thanks, went to another dealership. It was 2xx$ or so.

11-29-2012, 09:50 AM	#4
fuddman First Lieutenant Drives: 528-maybe Join Date: Aug 2010 Location: California Posts: 309 iTrader: (0)	By and large, your state laws tell the businessman what products he sells that he must collect taxes on. You need to check with the state bureau that implements those laws. Here in California, it's the Board of Equalization which , incidentally, does not require taxes be collected on labor. At least not yet.

11-29-2012, 12:21 PM	#8
Reznick First Lieutenant Drives: 2008 M3 ,2000 330 Join Date: Jul 2007 Location: Syracuse NY Posts: 349 iTrader: (0)	NY state YES on parts and labor

11-29-2012, 04:22 PM	#10
Marco@McKennaPerformance BimmerPost Supporting Vendor Drives: 135i Join Date: Aug 2012 Location: Norwalk, CA Posts: 471 iTrader: (2)	We have never charged clients tax on labor. You should only be taxed on parts

11-29-2012, 07:42 PM	#13
DBH Second Lieutenant Drives: 2011 M3 E92 Join Date: Jan 2011 Location: SE PA Posts: 275 iTrader: (0)	It depends on local & state laws. The states of NY, CT and PA levy a sales tax on labor.

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