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Is it legal to charge me sales tax on my lawn care bill?

March 16, 2008 By 5 Comments
lawn care
Livin the dream asked:


I have a lawn care service and every month on my bill, an additional amount is added on for sales tax. Texas does have sales tax, but is it legal to charge sales tax on a service like lawn care?

Acai Berry

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Comments

  1. garrisonbight says:
    March 16, 2008 at 5:02 am

    It is if they are collecting the sales tax and the State is actually GETTING the tax, but if they are collecting it and then pocketing the tax money.. they are in a BIG world of hurt if the State finds it out because someone reports it.

    Reply
  2. der says:
    March 17, 2008 at 5:37 pm

    According to the Texas tax information website, the answer is “yes.”

    “Landscaping and Lawn Care Services

    If you do landscaping or lawn or plant care, you should be collecting sales and use taxes. Landscaping and lawn and plant care services include any work you do to maintain or improve lawns, yards and ornamental plants and trees.
    Collecting Tax

    You should collect state tax, plus any local tax (city, county, special purpose district or transit) on the total charge for these services.
    Guidelines

    Here are some examples that should help you decide which of your services are taxable. Of course, these examples don’t cover every situation. If you have a question, call us.
    Taxable Services

    * 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

    Nontaxable Services

    * 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.”

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  3. Kate P says:
    March 19, 2008 at 11:52 am

    Yes, if they are a registered, licenced business they have to charge tax, for well…..tax purposes. They need to report taxes, what wouldn’t be legal is if they are licenced and NOT charging tax…I am a buniness owner as well and I do have to charge tax for a service….as dumb as it seams…

    Reply
  4. bostonianinmo says:
    March 22, 2008 at 11:24 am

    It’s not only legal, it’s REQUIRED.

    Reply
  5. Doctor Deth says:
    March 22, 2008 at 2:11 pm

    that’s YOUR responsibility to find out what services ARE taxable – If it is and you haven’t been collecting and submitting the tax to the state and you get audited, you would have to pay all that tax out of your pocket – contact the state Dept of Revenue – you should have gotten a guidebook explaining all the sales tax issues when you got your sales tax license – you did get a sales tax license didn;t you?

    Reply

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