# Taxidermists......Do you charge Tax?



## Diggdug (Sep 20, 2001)

I use three different Taxidermist on a regular basis. One of them charges tax for things like shoulder mounting a deer. The other two do not. Wondering why? Should Tax be charged?


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## chris_kreiner (Sep 6, 2006)

I don't charge tax...I am not aware of any changes to the tax law where taxidermist are required to charge tax.


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## Brian Jones (Jan 11, 2009)

I don't either, we are a service and are not required to,yet


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## glnmiller (Jan 7, 2006)

Technically, there should be sales tax charged for tangible items that go to the consumer as a part of the service. In the case of taxidermy, any forms, eyes, plaques, or other tangible materials used should be charged sales tax on, but not the labor.

http://www.michigan.gov/taxes/0,1607,7-238-43529-155505--,00.html

"Any property which goes with the customer in connection with the repair or service is considered a sale at retail and subject to sales tax."


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## Mitchell Ulrich (Sep 10, 2007)

...has your accountant ever asked if you've bought _anything_ on line with regards to your business? Taxable as well.

I don't charge Tax either.

That same question was brought up by Tim Hayes at a membership meeting when he was President of the MTA. That was almost 20 years ago. I'm surprised we've escaped being taxed for this long.


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## Brian Jones (Jan 11, 2009)

Mitchell Ulrich said:


> ...has your accountant ever asked if you've bought _anything_ on line with regards to your business? Taxable as well.
> 
> I don't charge Tax either.
> 
> That same question was brought up by Tim Hayes at a membership meeting when he was President of the MTA. That was almost 20 years ago. I'm surprised we've escaped being taxed for this long.


Me too Mitch. I believe it was also brought up a year or two ago. I'm not going to charge until they put a tax on us


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## Diggdug (Sep 20, 2001)

Thanks guys. I will mention it to her, hopefully she doesn't think I'm sticking my nose in her bussiness, but when you are being charged an extra $70 in tax, you kinda wonder.


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## Diggdug (Sep 20, 2001)

So I followed-up last night and asked my Taxidermist why they are charging Tax. They stated that because they are "The biggest taxidermist in the state" that they have to charge tax because the IRS requires it. 

Said they are fighting it with Attorneys but until they get everything settled they need to cover thier buts by charging tax. Does this sound fishy to anyone else?


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## Rasputin (Jan 13, 2009)

Diggdug said:


> So I followed-up last night and asked my Taxidermist why they are charging Tax. They stated that because they are "The biggest taxidermist in the state" that they have to charge tax because the IRS requires it.
> 
> Said they are fighting it with Attorneys but until they get everything settled they need to cover thier buts by charging tax. Does this sound fishy to anyone else?


 
There is no federal sales tax, so IRS would not require they collect it. In cases like this, I would recommend that the taxidermist pay sales tax when they purchase their supplies (or pay use tax instead) and they will probably be OK unless you get an overzealous State auditor. Another method would be to break out the cost of the materials used in the process and charge sales tax just on that. 

Check with your accountant, sales tax can be tricky and you don't want to do it wrong and set yourself up for trouble.


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## Mitchell Ulrich (Sep 10, 2007)

Diggdug said:


> So I followed-up last night and asked my Taxidermist why they are charging Tax. They stated that because they are "The biggest taxidermist in the state" that they have to charge tax because the IRS requires it.
> 
> Said they are fighting it with Attorneys but until they get everything settled they need to cover thier buts by charging tax. Does this sound fishy to anyone else?


 
If I was doing volume like that, then Yes, I'd add on sales Tax as well.

If I had employee's, I'd also charge Tax's if for no other reason than to be on the safe side. I could see where I might get screwed and be forced to pay for the last 8 years plus penalties and whatever else they felt could be piled on.


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## Rasputin (Jan 13, 2009)

Mitchell Ulrich said:


> If I was doing volume like that, then Yes, I'd add on sales Tax as well.
> 
> If I had employee's, I'd also charge Tax's if for no other reason than to be on the safe side. I could see where I might get screwed and be forced to pay for the last 8 years plus penalties and whatever else they felt could be piled on.


 
What you DON'T want is for the State to take your total sales, times 6% and assess you. I beleive you can avoid that as an issue by either paying the tax as you buy the supplies you need or by separating the cost of the supplies on your invoice and charging tax just on that. The State says that if you comingle the cost of the goods with the labor, the whole thing (might) be taxable. If you don't collect it from your customer, you owe it. 

Sales tax seems like such a simple concept, but take a look at how thick the book is! It can get ugly quick. Be prepared.


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## ESOX (Nov 20, 2000)

> http://www.michigan.gov/taxes/0,1607,7-238-43529-154427--,00.html





> So I followed-up last night and asked my Taxidermist why they are charging Tax. They stated that because they are "The biggest taxidermist in the state" that they have to charge tax because the IRS requires it.
> 
> Said they are fighting it with Attorneys but until they get everything settled they need to cover thier buts by charging tax. Does this sound fishy to anyone else?


As her to see a copy of her MI sales tax license. Sounds to me like she is collecting it but not paying it.


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## Paul Thompson (Jul 16, 2007)

If we do charge tax, as stated above, it is for materials only, not labor. I do not charge tax, as it is a service, they give me their goods, I do a service, and give them their goods back. They hire my service and buy the materials for me with a deposit. With that deposit, they pay sales tax on the materials. So I do not charge tax.


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## NancyJ (Sep 2, 2008)

As being in this biz for 32 years I have learned as such in any good biz your finest asset is your CPA.the issue of tax has arised ,Taxidermy is a service.We pay sales tax on the product we use to produce this service.charging tax a second time to clients is double taxation-Now, If I sell a mount that I have created as a extra, then that turns now into a taxable item.
Yes-esox has the right question,


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