+1

I like that, but it should be a little more clear.

Different lines on our estimate can be taxed or exempt. Individual material lines are always taxed. Individual lines labor (installation, programming, design, etc.) are always "non-tax". That is the easy part.

Labor that includes materials, such as a speaker prewire, is typically not taxed. If the material is a relatively small portion of the total cost, than the line is "non-taxed".

We pay sales tax on the item when we purchase the material. It becomes a "use" items and we pay a use sales tax on the cost of the item. The customer is then not responsible for additional sales tax.

More complex items that include labor and significant material costs are created as groups. Each items is individually added to an items that is made up of more than one item from our list. This way, the material content keeps its sales tax code, but the labor porting remains non-taxable.

QuickBooks does all the tax calculations behind the scenes and keeps us compliant with the DOR.

Sales tax liability is a huge issue with our industry, and may dealers don't collect or report properly. This can create a lager liability for a company. The worse thing you can do is collect sales tax, and not pay it to the tax board. Heaven forbid you use to pay your business expenses or your self. I have seen case were people go to jail......

Don't pay tax to your distributor and think you are clear on large items. If you sell them for a profit, then you owe the sales tax on the profit. Try collecting and keeping that straight.

Good luck.