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Interiorscape Forum / Scaper Talk Discussion Forum / Legal and Contracts / Tax on Monthly Plant Maintenance for outright purchase versus leasing
Posted:  23 Jul 2015 06:35  

What is the general norm for sales tax charged for Plant maintenance in two situations. I want to make sure we are in compliance.

Option 1) Plants and planters are purchased initially. Ongoing plant maintenance is a service. Is that taxed?

Option 2) Plant maintenance is provided on plants and plnaters on a monthly lease basis.

I appreciate your input.

Posted:  24 Jul 2015 02:13  
Well, as I usually begin...DEPENDS.

In this case, it depends on state law in your jurisdiction(s)...in case you operate in more than one state.

In New Jersey, if you itemize goods and labor separately, you collect state sales tax the latter and not the former.  If you bill the job as a lump sum, one-line invoice, everything is taxed.

Landscapers in New Jersey are considered contractors, just like plumbers and electricians and carpenters.  Contractors are not considered resellers, so they may only invoice the materials they use at their cost, no markup.  They bill their markup on the job in the invoice for their labor, delivery charges, etc.  So if you itemize everything separately, you would pay the sales tax to your supplier for the goods and collect it back when you bill the client for the job.  Just FYI, here's a link to the New Jersey guide to landscaping services and sales and use taxes:

http://www.nj.gov/agriculture/pdf/InfoGuideLa ...

So you'll have to go to your state taxation authority and find out how it's handled there. 

The plant maintenance service in New Jersey is always taxable.
Posted:  27 Jul 2015 15:24   Last Edited By: Julie Blymire 
Pennsylvania...all mentioned is taxed.

If you are sub-contracting, it is the responsibility of who you are subbing under to tax the client.  Your invoice should not include tax.

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