I was just woundering any mas guys might be able to help better. But when you bill out your machine services do you charge any tax ?Just for example a local landscaper hires you to spread a load dirt so you charge them and hourly rate but do you charge take on the machine part of the rental?
I can't speak for Mass. but here "services" aren't subject to sales tax. From your example - according to the MD tax dept. I could buy a load of dirt for $100 (pay sales tax at the time of purchase) and charge say $50 to deliver it and another $50 to spread it without collecting sales tax for the state. But if I resell the dirt for $150 + delivery and spreading I have to collect and send in sales tax. Check with your state tax dept. to be sure.
Each state has its own sales tax regulations, so you really need to check there. Should be able to find that info relatively easy with a search of the Mass web site. Or, hopefully someone from Mass who knows will chime in.
Each state does sales tax differently but if you were in NY,rentals are absolutely taxable.The most general rule of thumb is repairs are taxable,new construction falls under capital improvement and is non-taxable.HOWEVER--there are all sorts of exclusions,conditions,etc.Even the tax people are'nt sure about everything.A couple times I called Albany and got 2 different answers to the same question.My most asked question--"You charge tax on dirt?"--Answer---Yeah,it's the privilege of being in business--I simply collect money for the governor.:yup :bouncegri