Was an arborist's consultation or plant-disease diagnosis taxable even when no tree or shrub treatment was performed?

Plain-English summary

Correcting its October 29, 1987 answer, the Comptroller said arborist consultation was taxable even when the arborist did not treat the tree or shrub.

Rule 3.356(a)(5) treated arborist services as taxable landscaping. Identifying plant disease or infestation was an arborist service, so both consultation and treatment charges were taxable. Section 151.007(a)(2) made the taxable sales price the total service charge without deductions for labor, services, or other expenses.

Products and supplies transferred to the customer as part of the taxable service could be bought with a properly completed resale certificate under Rule 3.285. The provider was told to begin collecting tax on consultation-only charges upon receiving the corrective letter.

What this means for you

Under the historical rule, separating diagnosis from treatment did not make the consultation nontaxable. The classification turned on the service being performed by an arborist, not on whether treatment followed.

Common questions

Was diagnosis without treatment taxable? Yes.

Did the letter change an earlier answer? Yes. It expressly corrected the October 29, 1987 letter.

Could transferred products and supplies be purchased for resale? Yes, with a properly completed resale certificate.

When was this provider told to start taxing consultation-only charges? Upon receipt of the February 4, 1988 letter.

Citations and references

• 34 Tex. Admin. Code Rule 3.356(a)(5) — arborist services included in taxable landscaping.
• Tex. Tax Code § 151.007(a)(2) — total sales price of a taxable service.
• 34 Tex. Admin. Code Rule 3.285 — resale certificates for transferred products and supplies.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8802L0859A14

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

February 4, 1988

Dear ****:

This is to correct my letter of October 29, 1987, in which I stated that
a charge for consultation (diagnosis of disease, etc.) without treating a tree
or
shrub was not taxable.

Consultation without treating a tree or shrub is taxable.

Section (a)(5) of Rule 3.356 Real Property Services defines taxable real
property services (landscaping) to include aborists services. The
identification of disease or infestation of plants is a service provided by an
aborist even if no treatment is provided. Your charges for consultation and
treatment are clearly taxable. The sales price of a taxable service is defined
as the total amount for which the service is sold without a deduction for labor
or service employed or other expenses, see Section 151.007 (a)(2).

Products and supplies which are transferred to the customer as a part of
the taxable service you provide are not taxable. You may issue a properly
completed resale certificate when you purchase them. See Rule 3.285.

I apologize for any inconvenience I may have caused you. You should
begin collecting sales tax on consultations only upon receipt of this letter.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call our
toll-free number
1-800-531-5441. The regular number is 512/463-4600. You may write me at
the Tax Policy Division.

Sincerely,
Eddie C. Washington
Tax Policy Division