A. Any person engaged in the business of
providing lawn care of nonresidential property or landscaping services of both
residential and nonresidential property is required to collect and remit sales
tax on the gross receipts derived from these services. The business is required
to obtain a sales tax permit. All materials that remain in or on the customer's
property should be purchased tax exempt as a sale for resale. Examples are
fertilizer, weed killer, grass seed, sod, plants, trees, or shrubs. Materials
used or consumed by the business may not be purchased exempt. Examples are
gasoline, oil, cleaning materials, uniforms, tools, mowers or other equipment
used or consumed by the business.
B. The business will collect state and local
sales tax on the total consideration for landscaping services or nonresidential
lawn care, whether provided as part of a general contract for building
construction or as a separate agreement with the landowner. The business will
collect the tax from the party with whom it contracts for the service,
including general contractors, on the total contract cost including the cost of
plant materials. A business which has its own nursery is not required to report
tax on plant material withdrawn from stock, but will collect tax on the sale of
the material to its customers.
1. "Landscaping" means the
installation, preservation or enhancement of ground covering by planting trees,
bushes, shrubbery, grass, flowers and other types of decorative plants.
"Landscaping" does not include site preparation, cutting and filling, leveling,
tree trimming or tree removal, or clearing a site of bushes and trees.
"Landscaping" does include sodding, seeding and planting, as well as installing
items such as landscape timbers, edging, planters, or similar items.
Landscaping performed on highway easements and right-of-ways is taxable.
Landscaping is taxable whether it is done for decorative purposes or
non-decorative purposes such as erosion or sediment control.
2. "Lawn care" means the maintenance,
preservation or enhancement of ground covering of nonresidential property and
does not include planting trees, bushes, shrubbery, grass, flowers and other
types of decorative plants. Lawn care includes the following: mowing or raking
the yard, chemical spraying, fertilizing, weed control or weed-eating,
maintaining the ground cover in beds by adding additional rock, gravel, tree
bark or other material used to provide ground cover in beds or in other places
in the area to be maintained, and general lawn maintenance. Tree trimming or
tree removal is not lawn care.
"Residential" means a single-family residence used solely as the principal
place of residence of the owner or occupant. Apartment buildings, condominiums,
and duplexes are nonresidential property for purposes of this exemption. A
single-family dwelling leased to the occupant is residential property for
purposes of this exemption.