All materials and other tangible personal property purchased for use in landscaping are taxable, whether purchased by a landscaper, subcontractor, or the customer, unless the customer is entitled to an exemption.
Is landscaping worth the investment?
The ROI of landscaping can vary depending on the project; Some real estate experts say that smart landscape design can give a return on investment of 200-400% and landscape economist John Harris says that keeping up with your homes landscape and gardens can contribute up to 28% of your home’s overall value.
Do you have to pay sales tax on landscaping?
When landscaping work qualifies as a capital improvement, the customer should not be charged sales tax. See Tax Bulletin Capital Improvements. A capital improvement is any addition or alteration to real property that meets all three of the following conditions:
Can a contractor claim a resale exemption on landscaping?
Therefore, contractors may not claim a resale exemption on the purchase of taxable landscaping and janitorial services performed on their construction projects because they are not reselling the landscaping and janitorial services.
Are there any exemptions for landscaping in New Jersey?
There is no capital improvement exemption for certain defined landscaping services. Thus, the following types of services are subject to tax. Examples of Taxable Services • Planting: trees, shrubs, hedges, plants, etc. • Lawns: laying new sod and seeding a new lawn, grass plugging of new lawns
Who is liable for sales tax on new construction?
Under such circumstances, the contractor would be considered the seller and would be liable for sales tax on the property’s retail selling price. If the same property were installed as part of new construction, the contractor would be considered the consumer and would be liable for tax measured by the property’s cost.
