Does your landscaper charge sales tax?

[OhBeeHave]

Originally Posted by Elke Mariotti

Simple comparison:

if your electrician upgrades your electric service, say from 100 Amps to 200 Amps, tha'ts a capital improvement and should not be taxed, but if the electrician fixes something, it's maintenance and therefore taxable...

Going back to the OP, with landscaper there is a subtle difference when it comes to plants. Perennials are capital improvements, annuals are taxable.

I wonder how many people aren't aware of that?

[Elke Mariotti]

Originally Posted by OhBeeHave

Going back to the OP, with landscaper there is a subtle difference when it comes to plants. Perennials are capital improvements, annuals are taxable.

I wonder how many people aren't aware of that?

Probably most people, including many landscapers.

Excellent point! Perennials are "permanent", annuals not.

Sorry, can't give you more reps--have to spread them around more ;-)

[HappySpring]

So not to sound stupid, just trying to understand like everyone else, You said that Perennials are "permanent" and considered capital improvments, what about planting new trees and shrubs. They are permanent, but not sure if thats what you would call a perennials.

[Elke Mariotti]

Originally Posted by HappySpring

So not to sound stupid, just trying to understand like everyone else, You said that Perennials are "permanent" and considered capital improvments, what about planting new trees and shrubs. They are permanent, but not sure if thats what you would call a perennials.

Their "permanence" (and not maintenance) makes them capital improvements.
Now Home Depot, and other similar stores, aren't going to differentiate, so expect to pay sales tax.
If you have a landscaper taking care of that, you really shouldn't be paying sales tax on the shrubs, trees, etc.
Often they just don't want to break out labor and cost of plants ; there is sales tax on the labor portion, which includes mowing lawns, etc. if they're going "by the book". If they're collecting sales tax, they have to file quarterly sales tax returns, which many of the small ones probably have never done...

[OhBeeHave]

Originally Posted by HappySpring

So not to sound stupid, just trying to understand like everyone else, You said that Perennials are "permanent" and considered capital improvments, what about planting new trees and shrubs. They are permanent, but not sure if thats what you would call a perennials.

Elke replied to your question, so I am only going to write that your question didn't sound stupid at all. NYS loves making things confusing.