As Home Inspectors, what (if any) taxes need to be paid for our services?
I’ve been scouring the web for any information on this, but can’t find any info that gives me a solid (official) yes or no answer for the state of Florida, Pinellas, or Hillsborough Counties.
Seems like some other states require sales tax on a home inspection, others are exempt.
See, there is the issue.
Technically, we provide a “service” which is tax exempt under Fl law as far as I can tell so far. BUT, we leave behind an inspection report, is a product we produce and are required to give to the client.
I’ve read that home cleaning service personnel have to charge sales tax because a microscopic amount of cleaning product is left behind. Yea, thats right on the Fl DOR website.
So I’m assuming we do need to charge sales tax, but I’ve yet to find mention of anything that directly says so one way or the other specifically for home inspectors.
Not sure about contractors, but when I worked for a company that built refrigerated wine rooms, if we didn’t pay sales tax on the items used to build the wine room when we bought them, then we needed to pass the tax owed to the consumer for those materials. But if we did pay sales tax for the materials at purchase time, then the customer was not required to be charged that sales tax.
Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase. For example:
If you buy a taxable item in Florida and didn’t pay sales tax, you owe use tax.
If you buy an item tax-exempt intending to resell it and then use the item in your business or for personal use, you owe use tax.
I totally agree about home inspection being a service based business, but so are maids, and they are required to charge sales tax because of a minute amount of product left behind during their service.
An invoice is much different than an inspection report.
An inspection report might be considered a tangible good in the eyes of the Fl DOR, and tangible goods are subject to sales tax unless otherwise deemed as exempt.
What I’m looking for is official proof that our reports are in fact exempt.
I asked here because it’s directly related to Florida Home Inspection.
edit: If someone is not paying the required taxes, and/or are unsure if they need to or not, I suggest not revealing here, and find out what the official requirements are, and correct what they are doing to be in compliance with the law.
This topic is about settling this question about what the official requirements are for paying taxes for Florida Home Inspectors, as of 2014.
I had met with my accountant a couple days before this post as I am getting things set up to start sometime early next year and I asked this same question just to make sure. She said not to charge sales tax but to make sure I pay sales tax on everything I buy for the business and I won’t have any problems with sales tax.
(Douglas Wall, CIE, FL Lic. Mold Insp #2)
We have paid sales tax for leased radon monitors for years.