Were charges to maintain cemetery grounds subject to Texas sales tax as lawn-care services?

Plain-English summary

After receiving multiple inquiries, the Texas Comptroller ruled that cemetery grounds would not be considered lawns. Charges to maintain cemetery grounds therefore were not subject to sales tax.

The letter responded to broader industry concern and referred to this as an earlier ruling on the subject. It also mentioned a request concerning legislation for 501(c)(3) organizations, but the stated tax result rested on the cemetery-ground classification rather than a general nonprofit exemption.

What this means for you

Cemeteries and maintenance providers

Under this 1988 policy, ordinary cemetery-grounds maintenance was not taxable as lawn care because cemetery grounds were not treated as lawns.

Nonprofit organizations

Do not overread the reference to 501(c)(3) legislation. The operative reason given for the maintenance result was the classification of cemetery grounds.

Common questions

Q: Were cemetery maintenance charges taxable?
A: No.

Q: Why not?
A: The Comptroller ruled that cemetery grounds were not lawns.

Q: Was the result based on a 501(c)(3) exemption?
A: The letter mentions proposed nonprofit legislation, but its stated basis is the prior cemetery-ground ruling.

Q: Can this be relied on as a current taxpayer-specific ruling?
A: No. It is historical general guidance and may no longer reflect current law or policy.

Citations and references

The letter states the cemetery policy but cites no specific Tax Code section or Comptroller rule by number.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8806L0884F01

Original ruling text

Bob Bullock
Comptroller of Public Accounts
Austin, Texas 78774

June 30, 1988

Dear **:

Thanks so much for your letter on cemeteries. I couldn't agree more with
*. I don't believe for a minute that the intent of you or the
other legislators was to tax caretaker services at cemeteries. I'll
assure
you ** is not the only person who has expressed concern about
this
issue.

Because of the inquiries we've received, we took a careful look at this
issue a while back and ruled that cemetery grounds will not be considered
lawns. Therefore, charges to maintain these grounds will not be subject
to
sales tax.

Senator Edwards has also contacted my office requesting the fiscal impact
of legislation exempting 501(c)(3) corporations from the sales tax. It's
negligible and I see no reason to not handle his inquiry by our previous
ruling on this subject.

I hope this takes care of ***'s concern and the industry as a
whole.

Sincerely,
BOB BULLOCK
Comptroller of Public Accounts