Landscape Maintenance Services

Garden Services

Garden services are taxable, including those included in maintenance and stewardship contracts. If these services are part of an initial landscaping project, they are not taxable. 

Other Lawn and Garden Services

Some lawn and garden services are taxable and others are nontaxable.

Cemetery Maintenance

Lawn, garden, and tree services for maintenance of cemetery grounds for human burial are exempt from sales tax. See Funeral Homes, Mortuaries, Crematories and Cemeteries. 

Tree and Shrub Services

Some tree and shrub services are taxable. These services are taxable even if they are a necessary part of storm or disaster cleanup. 

Utility Lines

Tree, brush, and shrub trimming, cutting, and spraying services performed under utility lines are taxable. This includes all separately stated charges for labor, equipment, or chemicals. 

Mowing or spraying to control or kill weeds under utility lines, in ditches along roads, freeways, and railroad rights-of-way is exempt. 

Land-Clearing Contracts

A land-clearing contract is for the initial removal of trees, stumps, bushes, and shrubs to develop a site. These services are exempt when sold to contractors or subcontractors as part of a land-clearing contract. 

Note: When trees, stumps, bushes, and shrubs are removed for remodeling, improvements, or expansion of an existing structure, this exemption does not apply. 

Landscaping Contractors

A landscape construction contract is not taxable. 

You must pay sales or use tax on the cost of the items used to complete the contract. This includes plants, trees, shrubs, sod, and other materials, supplies and equipment. See Landscaping Contractors. 

Contractor – Retailer Sales Tax Guidelines

A contractor-retailer is a business that contracts to improve real property and also makes retail sales of building materials, supplies, equipment, and other tangible items. 

If you are a contractor-retailer, the rules for reporting tax on your purchases depend on if:

• You know the item’s use when purchased
• The item is used in a construction contract or sold at retail
• You are “primarily a contractor” or “primarily a retailer”

For specifics, see the Contractor - Retailer Sales Tax Guidelines.

Miscellaneous

Delivery Charges

Delivery charges are taxable if the items being delivered are taxable. This includes if the charges are listed separately on a bill or invoice. See Delivery Charges. 

Certain deliveries may also be subject to the Retail Delivery Fee. 

Sales to Exempt Organizations

An exempt organization must give you a completed Form ST3, Certificate of Exemption, to purchase goods or services without paying sales tax. 

If you have a landscaping construction contract with an exempt organization, you must pay sales tax on all trees, plants, or other materials used unless you have a purchasing agent agreement with the organization. See Contractors and Other Property Installers and Revenue Notice 17-10, Construction Contracts with Exempt Entities. 

Direct Pay Authorization

Business with Direct Pay authorization cannot purchase services exempt from sales tax. 

Equipment Sales

If you sell equipment or other items that were used in your business, the sale may be taxable tax. See Isolated and Occasional Sales. 

Firewood Sales

Sales of firewood for recreational or commercial use are taxable.

Exempt Purchases

Purchases of certain items used to provide these services are exempt. To purchase exempt, give the seller a completed Form ST3, Certificate of Exemption.

Invasive Aquatic Plants Herbicide Exemption

Herbicides used under an invasive aquatic plant management permit are exempt from sales tax. The exemption only applies to herbicides labeled for use in water and registered with the Minnesota Department of Agriculture for use on invasive aquatic plants. 

To qualify for exemption, the herbicides must be purchased by lakeshore property owners, a lakeshore property association, or a contractor hired to provide invasive aquatic plant management. Use Form ST3, Certificate of Exemption to claim the exemption. 

Separate Detachable Units

Separate detachable units are accessories, tools, equipment, or other items that are attached to a machine to be used. Purchases of separate detachable units are exempt from sales tax if they meet all the following requirements:

1. They are used to provide a taxable service.
2. They are attached to a machine while in use.
3. Their ordinary useful life is less than 12 months when used in providing taxable services. 

Examples of separate detachable units:

• Lawn mower blades
• Chain saw blades
• Trimmer wire or line

This exemption does not apply to the machine or any components included in the original purchase price. 

Antifreeze and Lubricants for Vehicles

Purchases of lubricants and antifreeze for vehicles are exempt when 50% or more of the mileage is used to directly provide a taxable service. 

Example
A vehicle is used to spray lawns. If less than 50% of the mileage is for providing this service, only the portion of lubricants and antifreeze used while providing the service can be purchased exempt. 

Minnesota Motor Fuel Refund

Certain fuels qualify for a sales tax exemption when they are used in equipment to directly provide a taxable service. 

When you buy gasoline from a pump at a gas station, the price already includes petroleum tax (both state and federal). You can request a refund of state petroleum tax paid on fuel used in lawn mowers, chain saws, or other off-road items that are used to provide taxable services. 

To request a refund, complete Form PDR-1, Minnesota Motor Fuel Claim for Refund. For more information, see Petroleum Tax.  

Taxable Purchases

Pay sales tax to the seller when you purchase these items or report use tax on your cost of the items. 

For a full list of items that are taxable when purchased, see Taxable Sales. 

Use Tax

If you buy equipment, supplies, or other taxable items for your business and the seller does not charge Minnesota sales tax, you owe use tax on the cost of the items. 

Report state and local use tax when you file your sales and use tax return. See Use Tax for Businesses and Local Sales and Use Tax.

Legal References and Resources

Minnesota Statutes

• 296A.16, subd. 2, Fuel used in other vehicle; claim for refund
• 297A.61, subd. 3(g)(6)(vi), Sale and purchase
• 297A.67, General exemptions
  • subd. 25, Maintenance of cemetery goods
  • subd. 37, Certain herbicides
• 297A.68, Business exemptions
  • subd. 3, Materials used in providing certain taxable services
  • subd. 40, Land clearing
• 297A.70, subd. 3(a)(9), Sales of certain goods and services to government

Revenue Notices

• 00-03, Exemptions: Materials Used or Consumed in Providing Taxable Services
• 08-07, Lawn and Tree Services
• 17-10, Construction Contracts with Exempt Entities

Publications 

• Agricultural and Farming
• Contractors and Other Property Installers
• Delivery Charges
• Isolated and Occasional Sales
• Local Sales and Use Taxes
• Nursery and Greenhouse Production
• Sales and Use Tax Business Guide
• Use Tax for Businesses