Welcome to the latest installment of our blog “What are the rules for NYS Sales Tax for my profession?” In this blog we are highlighting another industry with a few of the broad guidelines to follow! Our hope is to provide helpful information for business owners and consumers as well!
This blog focuses on Landscapers.
Landscapers are considered to be contractors for sales tax purposes. To determine if a landscaper is to collect sales tax depends on the type of work that is being performed.
If a landscaper is performing work that is considered to be a capital improvement, the customer for whom the work is performed should not be charged sales tax. A capital improvement is an addition to real property that adds to the value of the property, becomes part of the property, and intended to be a permanent installation.
Any materials that are purchased to be used in landscaping are subject to sales tax, whether they were purchased by the landscaper, subcontractor, or customer.
Landscaping services that are subject to sales tax are maintaining, servicing and repairing real property. Installing tangible personal property that is not qualified as a capital improvement is also taxable. Some example of landscaping repair and maintenance services are mowing lawns, repairing fences, trimming hedges, and snow removal, just to name a few.
This is just a brief overview of the sales tax laws regarding landscapers. Feel free to give our office a call for more information.
By Renee Greenspan, MS