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tax on lawn care service???

Discussion in 'Business Operations' started by swing blade, Mar 30, 2005.

  1. swing blade

    swing blade LawnSite Member
    Messages: 123

    Hi guys, i am working as an independant contractor for another firm and i have a question: do you charge tax on lawn care service??? the comapny i'm working for is doing this and i am curoius
  2. eshreve1234

    eshreve1234 LawnSite Member
    Messages: 184

    Yes, in OH lawn service is taxable. There has been several threads on this issue in the past month if you need to search for more info.
  3. MJLsLawnCareNmoreLLC

    MJLsLawnCareNmoreLLC LawnSite Senior Member
    Messages: 840

    Not in MI that I know of.
  4. swing blade

    swing blade LawnSite Member
    Messages: 123

    thanks for the reply, i guess the other part of my question is would it be taxable in the state of indiana???
  5. Mark McC

    Mark McC LawnSite Bronze Member
    Messages: 1,565

    I guess the answer would be to call the state of Indiana and find out.
  6. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    you have been a member since 2001, presumably doing lawn care since then, and your just now asking about charging sales tax, i charged it on my first job,

    better hope your competition dont see this and report you......get legal man... :drinkup: here are the rules

    ST 2003-02 - Landscaping, Lawn Care Services, and Snow Removal - January, 2004 - Revised

    This release deals with the application of Ohio sales and use tax to landscaping, lawn care, and snow removal services. It revises and replaces the revised release issued in January 2003 so as to incorporate changes made to the law relating to snow removal in Am. Sub. H.B. 95 (effective 7/1/2003). R.C. 5739.01 (B)(3)(g) includes landscaping and lawn care service in the definition of "sale" or "selling," which makes the provision of these services subject to the Ohio sales and use tax.

    R.C. 5739.01 (B)(5) states that "the provision of landscaping and lawn care service and the transfer of property as part of that service is never a construction contract."

    R.C. 5739.01 (DD) defines "landscaping and lawn care service" as:
    ". . . the services of planting, seeding, sodding, removing, cutting, trimming, pruning, mulching, aerating, applying chemicals, watering, fertilizing and providing similar services to establish, promote, or control the growth of trees, shrubs, flowers, grass, ground cover, and other flora, or otherwise maintaining a lawn or landscape grown or maintained by the owner for ornamentation or other nonagricultural purpose." *

    R.C. 5739.01(B)(3)(u) includes snow removal in the definition of "sale" or "selling," which makes the provision of that service subject to the Ohio sales and use tax on and after August 1, 2003. That section of the law also defines "snow removal service" as "... the removal of snow by any mechanized means …".

    Further, the law stipulates that landscaping, lawn care, and snow removal service does not include the providing of such services by a person who has less than five thousand dollars in sales of such services during the calendar year.

    R.C. 5739.01(D)(5). This section provides, "A person who makes sales of any of the services listed in division (B)(3), of this section is the consumer of any tangible personal property used in performing the service. The purchase of that property is not subject to the resale exception under division (E)(1) of this section."

    R.C. 5739.02(B)(43)(m). This section provides an exception from the sales tax when the purpose of the purchaser is, "To use tangible personal property to perform a service listed in division (B)(3) of section 5739.01 of the Ohio Revised Code, if the property is or is to be permanently transferred to the consumer of the services as an integral part of the performance of the service."

    The following is a summary of typical questions being asked along with the Department's responses based on the provisions of the Ohio Revised Code. T
  7. swing blade

    swing blade LawnSite Member
    Messages: 123

    Thank you for the input, i have called the state but I have been sitting on hold for so long i gave up. As for the remark concerning me just now asking this question..... The answer is I am legal. I am working for a close friend who owns another company that deals more with sprinkler systems and more speciality services. he is based in a different state than I am which results in totally different laws on taxation. I got so sick and tired of being on hold on the phone i thought I would post on here to check it out. being located within a tri-state region can get somewhat complicated at times when your trying to file all of the appropiate paperwork. I appreciate all of your input though, and would like to say THANK YOU for that great post with all of the information on the Ohio tax code
  8. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Messages: 2,955

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