Is it legal to charge me sales tax on my lawn care bill?
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?
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?
February 3rd, 2008 at 3:06 pm
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.
February 6th, 2008 at 12:31 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.”
February 8th, 2008 at 10:12 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…
February 8th, 2008 at 6:27 pm
It’s not only legal, it’s REQUIRED.
February 11th, 2008 at 9:25 am
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?