Windshield Repair Forum

I was speaking with the accounts payable department of one of my Fleets this morning introducing myself and everything. She wanted to know if we collected and paid the DC tax. I proceeded to tell her that there is not supposed to be tax on labor & we are only charging for the labor of repairing the windshields. She told me that DC puts a tax on labor as well for certain things. This is all new to me, I worked at another company previously who did installations (of signs) and we never collected tax on our labor when we did work in DC. As a new business owner I wanted to make sure that I am doing everything correctly. Please let me know if you have any information on this, have not been able to find reliable information about this issue from other sources.

Contact the DC Dept of revenue. Ask for a copy of the tax laws .

And if they are anything like ours get a professional to explain them to you. Better safe than sorry, it is extremely bad to start a business wrongly just for a bit of inquiring.

I contacted the DC Dept of Revenue and I am waiting to hear back from them. I definitely want to make sure that everything is done correctly before we set foot in DC. Thanks for the suggestion!

No, labor is not taxable in the state of California. Stores and businesses can tax goods but services and labor are not taxed. For example, a construction worker can charge a person tax on materials but he cannot charge tax on the labor portion of the project.