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Use Tax Support in Job Costing

ActiveApplications Job Costing has many robust features to aid you in the Costing process. Use Tax Support is a handy feature that can save you time and aggravation. In some states labor and other services are not subject to sales tax. This creates a concept the jobs can be lowered in price by applying tax to the cost of the item instead of the amount for which it is sold. The argument is that the customer through the landscaper is responsible for the tax on the items installed but not on the labor that it takes to install the item. If you further argue that all materials are not marked up but installed on the customer site with tax free labor, then tax is calculated on the the materials not the total installed price.

This concept must be justifiable by your accountant and each unit of government could have different rules but it can make a significant difference in the bottom line of an estimate. This means you will get more jobs because the can be less expensive than your competitor. If a competitor buys a $10.00 item and installs it for 100$ the tax at 8% is $8.00. You could install that item using the use tax concept for $100.80 if you used use tax. This gives you a $7.20 advantage over your competitor
Use Tax Support