Was chemically injecting trees to prevent oak wilt taxable when the provider performed no tree trimming, removal, or other ancillary landscaping?

Plain-English summary

A provider chemically injected trees to prevent the spread of oak wilt and did not perform related tree trimming or removal. The Comptroller treated the injection as a taxable service.

Rule 3.356(a)(5) included arborist services within taxable real-property services. The letter said that identifying or treating tree disease or infestation was an arborist service, and the taxable sales price included labor and other expenses without deduction.

Products and supplies transferred to the customer as part of the taxable service could be purchased tax-free with a properly completed resale certificate.

What this means for you

A specialized tree-health treatment could be taxable as an arborist service even without trimming, removal, or another landscaping task. When the service itself was taxable, the letter included the full charge in the tax base.

Common questions

Was chemical injection for oak-wilt prevention taxable? Yes.

Did the absence of trimming or removal change the answer? No.

Could transferred treatment products be bought for resale? Yes, with a properly completed resale certificate.

Citations and references

• 34 Tex. Admin. Code Rule 3.356(a)(5) — arborist services within taxable real-property services

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9109L1129A01

Original ruling text

September 6, 1991

Dear ****:

Thank you for your recent letter regarding the taxability of the chemical
injection of trees to prevent the spread of oak wilt. You stated that no
ancillary landscape services such as tree trimming or removal are involved.

Chemical injection of trees to prevent the spread of oak wilt is a
taxable service. The sales price of a taxable service is the total amount for
which the service is sold without a deduction for labor or other expenses.

Section (a)(5) of Rule 3.356 Real Property Services defines taxable real
property services (landscaping) to include arborists services. The
identification and/or treatment of disease or infestation of trees is a service
provided by an arborist.

Products and supplies which are transferred to the customer as part of
the taxable service your client provides may be purchased tax free by issuing a
properly completed resale certificate to the vendor at the time of purchase.

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, you may call me toll
free at 1-800-531-5441, extension 5-0330. The regular number is 512/463-4600,
or write Tax Administration Division.

Sincerely,

Bettie U. Peterson
Tax Administration Division