field_block:node:guide:title

Landscaping Contractors

field_block:node:guide:body

A landscape construction contract is not taxable.

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

Examples of construction contracts:

Building a deck
Grading an area with a skid steer or adding soil
Installing a brick walkway or driveway
Installing edging, poly, and rock in landscape beds
Installing nightscape lighting
Installing flower or vegetable plants or sod as part of an initial construction contract
Installing a timber, segmental block, natural stone, or boulder retaining wall
Installing and maintaining underground irrigation and sprinkler systems
Planting trees, shrubs, and perennials
Preparing ground beds for plant material as part of a construction project
Spreading mulch as part of the initial construction contract
Top-dressing an area with soil, including reseeding or re-sodding damaged or altered surfaces

Note: Seasonal switch-outs of plants and mulch are a taxable gardening service.

For more information, see Lawn and Garden Maintenance, Tree and Shrub Services.

field_block:node:guide:field_paragraph

Removal of Trees and Shrubs [+]

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 from sales tax when sold as part of a land-clearing contract.

Note: If the trees, stumps, bushes, and shrubs are being removed for remodeling, improvement, or expansion of an existing structure, rather than to develop the entire site, this exemption does not apply.

Examples

A developer purchases an empty lot to build new housing or a commercial building. The developer contracts with a landscaper to remove trees and stumps on the site. These services are exempt from sales tax because it is a new site being developed.
A homeowner has a large area of land between his or her maintained lawn and a nearby river. The homeowner decides to clear the land and install a garden and dock. In this case, the land-clearing services are taxable because it is a pre-existing site that is being expanded.

Contractors/Growers [+]

If you grow your own nursery stock, you will owe sales or use tax depending on how the items are used. See the chart below.

If you	Then
Grow your own nursery stock for use only in landscaping construction contracts	You must pay sales or use tax on all taxable items used to produce those plants. For example: Seeds and seedlings Fertilizers and chemicals Water and fuels
Grow nursery stock to sell at retail	Items used or consumed in production may be purchased exempt. For example: Seeds and seedlings Fertilizers and chemicals Water and fuels Give your vendor a completed Form ST3, Certificate of Exemption. Specify the Agricultural production exemption.
Primarily grow nursery stock to sell at retail but later use the nursery stock in a landscaping construction contract	You must pay use tax on the cost of your inputs on those items used.

Machinery Purchases

You may purchase certain machinery exempt from sales tax if it’s used directly and principally in the production of trees and shrubs for retail sale. Give your vendor a completed Form ST3, Certificate of Exemption. Specify the Farm machinery exemption.

Equipment primarily used in landscape construction contracts does not qualify for the farm machinery exemption and is taxable. For more information, see Nursery and Greenhouse Production.

Performing Landscape Construction and Maintenance [+]

Certain items purchased to provide landscape maintenance services are exempt. This exemption applies only to businesses providing taxable services. It does not apply to individuals or businesses purchasing materials for their own use.

If you buy materials exempt from sales tax and later use them in a landscape construction contract, you must report and pay use tax on those materials.

Example

You purchase soil to use in your maintenance projects exempt from sales tax. You later use the soil in a landscape construction contract. You must report and pay use tax on cost of the soil used for that project.

For more information, see Lawn and Garden Maintenance, Tree and Shrub Services.

Local Sales Tax [+]

Some cities and counties have local sales and use taxes. If you are located in or make sales into an area with a local tax, you may owe local sales and use tax. For more information, see Local Sales and Use Taxes.

To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use our Sales Tax Rate Map or Sales Tax Rate Calculator to help you determine the sales tax rate.

Note: The map and rate calculator do not include special local taxes.

For more information, see:

Guide Menu

Landscaping Contractors