Sales Tax Audit Attorney for Landscaping Services in Texas
Although many States do not apply sales tax to Landscaping services, Texas does! This makes sense – since the weather allows for landscaping throughout the year, this is a thriving business that the Comptroller can surely take advantage of in terms of collecting more sales tax.
The $5000 Rule: If you earn less than $5000 per year in your landscaping business, then, you do not have to collect sales tax.
Taxable landscaping and lawn care services include the following:
- Planting, transplanting, relocating and removing indoor or outdoor plants.
- Identifying, preventing or curing plant diseases.
- Pruning, bracing, spraying, fertilizing and watering plants.
- Planting, mowing, trimming and edging grass or other ground cover.
- Planting and maintaining flower gardens.
- Trimming, spraying, and maintaining trees.
The following landscaping and lawn care services are not taxable:
- Mowing pipeline or highway rights-of-way.
- Trimming trees away from power lines.
- Harvesting, cultivating, mowing and fertilizing farm or forest land.
- Mowing cemeteries.
You should separately state charges for nontaxable services from charges for taxable services. Otherwise, your total charge will be presumed taxable if the taxable portion is greater than 5 percent. You or your customer may overcome the presumption through documentary evidence that establishes the percentage related to nontaxable services. Your invoices or contracts should clearly identify the services you perform.
Facing a sales tax audit in Texas? Contact our attorney for a consultation.
