Is labor to mow, weed, edge, and trim cemetery grounds taxed the same way as ordinary residential/commercial lawn care in Texas?

Plain-English summary

A business asked the Comptroller whether mowing, weeding, edging, and trimming cemetery grounds is taxed the same as ordinary lawn maintenance. Normally, taxable real property services include building and grounds keeping, landscaping, and lawn maintenance -- and both the labor and material charges for mowing, weeding, edging, and trimming lawns and yards are taxable.

But the Comptroller drew a specific distinction: cemetery grounds are not considered "lawns" or "yards." As a result, the labor charge to maintain cemetery grounds is not subject to sales tax at all. That said, the exemption applies only to the labor billed to the cemetery customer -- the service provider still owes tax on its own purchase of the materials and supplies consumed while doing the work, such as chemicals, fertilizers, lawn mowers, and mower parts.

What this means for you

Landscaping and grounds-maintenance companies that service cemeteries

Don't collect sales tax on your labor charge for cemetery grounds maintenance -- that's different from your ordinary residential/commercial lawn care work, which remains fully taxable (labor and materials). But continue paying tax yourself on the equipment, chemicals, and supplies you consume doing the cemetery work.

Cemetery operators and associations

Expect your grounds-maintenance labor invoices to come without sales tax, unlike a typical homeowner's lawn service bill.

Accountants and tax professionals

This is a narrow, fact-specific carve-out (cemetery grounds ≠ lawns/yards) rather than a broader real-property-services exemption -- don't extend it to other non-residential grounds (parks, golf courses, etc.) without separate confirmation, since this letter addresses cemeteries specifically.

Common questions

Q: Is labor to mow and maintain cemetery grounds taxable in Texas?
A: No, per this letter -- cemetery grounds aren't considered lawns or yards, so the labor charge isn't taxable.

Q: Does the grounds-maintenance company still pay tax on its own supplies?
A: Yes, per this letter -- it owes tax on its purchase price for chemicals, fertilizers, lawn mowers, and mower parts used in the work.

Q: Does this same exemption apply to ordinary residential or commercial lawn care?
A: No -- per this letter, ordinary lawn/yard mowing, weeding, edging, and trimming remain taxable for both labor and materials; only cemetery grounds are carved out.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9707566L

Original ruling text

July 18, 1997

Dear ***:

Thank you for your letter dated July 7, 1997, concerning the taxability of
cemetery grounds maintenance such as mowing, weeding, edging, and trimming.

Taxable real property services includes building and grounds keeping services,
and landscaping and lawn maintenance services. Both the labor and the material
charges are taxable for mowing lawns, weeding, edging, and trimming laws and
yards.

Cemetery grounds are not considered lawns or yards. Therefore, labor charges
to maintain these grounds are not subject to sales tax. However, the person
providing the cemetery grounds maintenance owes tax on his purchase price of
all materials and supplies used to provide the service (such as chemicals,
fertilizers, lawn mowers and/or their parts).

This opinion is based on the facts you submitted and current law. Other facts
though similar, may result in different answers.

If you have any questions or need more information, you may call me toll free
at 1-800-531-5441, ext. 50330. The direct line is 512/475-0330. You may also
write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Bettie Peterson
Tax Policy Division