When it comes to landscape services in Harris County, Texas, it is essential to comprehend the tax implications of the services you are providing. Materials used for new residential structures are taxable, and in a lump sum contract (an amount for materials and labor), the landscaper pays taxes. If you are buying fertilizers, plants, flower bed borders, herbicides, and processed soil, sand and gravel to care for taxable gardens or lawns, you must present a resale certificate to the supplier. If you are designing a new residential structure for a contractor, you are responsible for billing and collecting taxes until the contractor issues a certificate attesting that the service is part of an improvement of a building with a new residential structure.
It is essential to differentiate the charge for tax-exempt professional services from any charge for taxable landscape services, or the total charge will be presumed to be taxable if the taxable portion is greater than 5 percent. For instance, taxes must be paid for the gardening of a sales office, even if it is located in a residential complex. These services include consultations, research, preparation of design plans, and other engineering or architectural services. Landscape services do not include the construction or repair of terraces, retaining walls, fences or pools, or the installation of underground sprinkler systems. Gardening and lawn and plant care services include any work you do to maintain or improve lawns, gardens, and ornamental plants and trees.
In a lump sum contract (a single quantity for materials and labor), the landscaper pays taxes when purchasing the materials and does not collect taxes from the customer. In conclusion, it is critical to understand the tax implications of landscape services in Harris County, Texas before signing any contracts. It is also important to separate charges for tax-exempt professional services from any charges for taxable landscape services. Finally, when buying materials for taxable gardens or lawns, make sure to provide a resale certificate to the supplier.