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We Help Contribute to The Sales Tax Numbers

January 30, 2017 by doctordave

The Journal-World recently that Lawrence had the “best tax growth in the state.”  While much of this was due to construction, I’m glad we played a small part in that.

I’m proud to say we collect sales tax on behalf of the state. Not every business, especially in the computer repair industry, does that. We’re professionals and proud of it.  We use Kansas’s destination based sales tax model to look up how much we’re supposed to charge.  Each month I go in and post a report to the Department of Revenue and return the money we collected from our clients. Much like other aspects of my business, it’s the right thing to do.

I know we’re not the cheapest in town for computer repair. However, I think we’re the best and the reviews back that statement up.  New clients tell me all the time that the person who they used before didn’t charge them sales tax.  It happens so often, I have a template on how to respond to that. That previous computer repair company was required to collect sales tax. In theory, they might have absorbed that cost (coffee shops do that), but it’s unlikely.  Most people who do this part time don’t collect sales tax.  When clients pay cash, some companies won’t “charge” sales tax.  I put “charge” in quotes because you’re not charging the customer. You’re collecting money on behalf of the state.  Kansas is charging, you’re just collecting that on their behalf.  When you work with us, we clearly mark on the receipt how much sales tax we’re collecting

When you use a service that doesn’t collect sales tax, you’re hurting your community.  Taxes are there for a reason.  Moreover, when you use a company that doesn’t collect tax you’re dealing with a business that isn’t fully honest with the state.  Is that the type of business you want working on your computer?

Filed Under: Business, Commentary Tagged With: commentary, local business, taxes

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