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NC Sales Tax

TreeMonkee58

TreeMonkee58

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I just read a notice SD16-4 dated November 2016 from the NC Dept of Revenue that services are taxable and the company that is providing that service is required to collect sales tax. Not sure if it applies to removal but it clearly states that if you are planting trees or applying pesticide or fertilizer you need to start collecting sales tax.

This from the definitions found on the NC web page.

“Landscaping Service” – A service to maintain or improve lawns, yards, or ornamental plants and trees. Examples include the installation of trees, shrubs, or flowers; tree trimming; lawn mowing; and the application of seed, mulch, pesticide, or fertilizer to a lawn or yard.

Do you collect sales tax and what is the customers response?
 

ATH

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We've had to in Ohio for a while. Customers just pay it...kinda like they do at the store. Every now and then a customer will write a check before I write them an invoice. I'll just eat it.

I did learn though that "professional services" are not taxable. So appraisals, consulting services, tree risk assessments, etc... are not taxed. (the cynic in me thinks that has something to do with attorneys and accounts writing the laws...)
 
Oldmaple

Oldmaple

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In Michigan tree work is still one of the exempt services. They tried to change it a few years back but some "lobbying" by the services involved (it wasn't just tree services) made them change their mind. I was just planning on adding on a rounded off figure close to 6 percent on my quoted number and have "sales tax included" printed on my quotation forms.
 
under_the_hill

under_the_hill

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TreeMonkee58 this is from SD16-4, page 7

"Sales of or the gross receipts derived from the following repair, maintenance, and installation
services are exempt from tax:"

in that list
"Landscaping service."

Most arborist activities in NC look to be covered under the Landscaping Service definition you posted that is also in SD16-4 and, by my reading, are exempt from tax collection unless there are more recent changes.
 
TreeMonkee58

TreeMonkee58

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thanks for your response and I agree, now I have something to carry back to my accountant who is by principle a conservative risk taker.
“Landscaping Service” – A service to maintain or improve lawns, yards, or ornamental plants and trees.
Sales services or the gross receipts derived from the following repair, maintenance, and installatioare exempt from tax:
  • Landscaping service.
 
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