Was mowing vacant lots and acreage for weed and rodent control subject to Texas sales tax?

Plain-English summary

The requester mowed vacant lots and acreage to control weeds and rodents, usually so the property would comply with local ordinances.

The Comptroller classified the work as lawn maintenance, a taxable service effective October 1, 1987. The business had to collect tax on its total charge to individuals and commercial customers.

The business did not have to collect tax from qualifying exempt organizations or federal, Texas state, or local government units. It needed to keep a signed exemption certificate, or for a government customer an exemption certificate or official purchase voucher, as proof.

What this means for you

Calling the property vacant, undeveloped, or ordinance-compliance acreage did not change the service classification. The physical work—mowing for weed and rodent control—was lawn maintenance.

Common questions

Was vacant-lot mowing taxable? Yes, on the total charge to individual and commercial customers.

Did mowing solely to satisfy a local ordinance change the result? No. The letter still classified it as lawn maintenance.

Which customers could buy the service tax-free? Qualifying exempt organizations and units of federal, Texas state, or local government.

What documentation was required? A signed exemption certificate, or for government customers an exemption certificate or official purchase voucher.

Citations and references

• 34 Tex. Admin. Code Rule 3.356 — lawn-maintenance and real-property services
• 34 Tex. Admin. Code Rule 3.322 — exempt organizations

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9104L1106D13

Original ruling text

April 25, 1991

Dear *****:

Thank you for your recent letter. As I understand it, you
mow vacant lots and acreage of various sizes for the purpose
of weed and rodent control, usually so the property may
satisfy local ordinances.

This is lawn maintenance, which the Legislature made a
taxable service effective October 1, 1987. You should
collect tax from individuals and commercial clients on your
total charge for lawn maintenance. Enclosed Rule 3.356
contains more information about this.

You are not required to collect tax if your customer is an
exempt organization (a church, a school, etc.) or a unit of
the federal or Texas state or local government. See
enclosed Rule 3.322. Be sure to obtain and keep a signed
exemption certificate (or, in the case of governmental
clients, an exemption certificate or an official purchase
voucher) as proof of the customer's exempt status.

Under separate cover, I have transmitted a sales tax permit
application packet. You should follow the instructions
contained therein to apply for a permit and begin collecting
tax and filing tax reports.

This opinion is based on the facts presented. Different
facts, though similar, might lead to different answers. If
you have further questions, feel free to write or call
1-800-252-5555.

Sincerely,

John Christian
Tax Administration