(a)
Definitions. The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise:
Lawn-An area maintained with grass
adjacent to a building. The term does not include athletic fields, cemeteries,
golf courses, fields, parks and public utility or highway right-of-ways.
Lawn care service-Providing services for
lawn upkeep including fertilizing, lawn mowing, shrubbery trimming or other
lawn treatment services.
Shrubbery-A woody plant that produces
branches or shoots from or near the base.
Tree-A woody plant with a main stem and
usually having a distinct head.
(b)
Scope. The sale at
retail or use of lawn care services performed in this Commonwealth is subject
to tax.
(c)
Examples of
taxable services. The following are examples of taxable lawn care
services:
(1) Fertilizing lawns.
(2) Mowing, trimming, cutting or edging
lawns.
(3) Dethatching
lawns.
(4) Applying herbicides,
insecticides or fungicides to lawns.
(5) Raking grass on lawns.
(6) Applying treatments for weed, pest,
insect or disease control to lawns.
(7) Watering lawns.
(8) Applying lime to lawns.
(9) Aerating lawns.
(10) Providing lawn evaluation, consultation
or soil testing services on lawns, if purchased in conjunction with other lawn
care services, regardless of whether the costs of the lawn evaluation,
consultation or soil testing services are separately stated on the
invoice.
(11) Overseeding, sodding
or grass plugging of existing lawns.
(12) Trimming or pruning shrubbery when
performed in conjunction with other lawn care services.
(d)
Examples of nontaxable
services. The following are examples of services which are not taxable
lawn care services:
(1) Seeding, sodding or
grass plugging to establish a new lawn. Seeding, sodding or grass plugging in
conjunction with building construction will be presumed to be a new
lawn.
(2) Trimming, pruning or
fertilizing trees.
(3) Planting or
removing shrubbery or trees.
(4)
Providing lawn evaluation, consultation or soil testing services, if not
purchased in conjunction with other lawn care services.
(5) Designing lawns or landscapes.
(6) Applying herbicides or fungicides to
shrubbery, trees, flowers or vegetables.
(7) Maintaining shrubbery, flower or
vegetable beds, such as by mulching, tilling, weeding or fertilizing.
(8) Separately stated charges for leaf
raking.
(e)
Purchase price. Tax shall be imposed on the total charge for
lawn care services. The failure to separately state charges for lawn care
services from other nontaxable charges on the same invoice requires the
charging of tax on the total invoice amount.
(f)
Exemptions.
(1) Lawn care services are not subject to tax
if purchased by qualified institutions of purely public charity, charitable
organizations, volunteer fire companies, religious organizations and nonprofit
educational institutions, except if used in an unrelated trade or business; the
Federal government or its instrumentalities; or the Commonwealth, its
instrumentalities or subdivisions, including public school districts. The
purchase of lawn care services is subject to tax if purchased by persons
engaged in the business of manufacturing, mining, processing, public utility,
farming, dairying, agriculture, horticulture or floriculture, as those terms
are defined in section 201(k)(8) and (o)(4)(B) of the TRC (72 P. S. §
7201(k)(8) and
(o)(4)(B)).
(2) The vendor of lawn care services may
claim the resale exemption upon its purchase of tangible personal property that
is transferred to the purchaser or a third party in the performance of the lawn
care services. The vendor may also purchase lawn care services from another
provider and subsequently resell the services to a purchaser. The vendor may
not claim the resale exemption upon its purchase of administrative supplies or
the purchase of other taxable services that it may use but not transfer in the
performance of its lawn care services.
(i)
The following are examples of property that may be purchased exempt for resale
when transferred to the purchaser in the performance of lawn care services:
(A) Herbicides, insecticides, fungicides or
other chemicals that are applied to lawns.
(B) Grass seed, sod, grass plugs, straw,
fertilizers or lime applied to lawns.
(ii) The following are examples of taxable
property when used in the performance of lawn care services:
(A) Mowers; edgers; or pruning, dethatching,
aerating or mulching equipment, including motor oil and gasoline used in the
equipment.
(B) Rakes, shovels or
hoes.
(C) Spray
applicators.
(D) Testing
kits.
(E) Lawn sweepers.
(F) Other tangible personal property and
services used in connection with the performance of lawn care services such as
invoices, sales receipts, contracts, estimate sheets, confirmations and other
similar items.