![Texas Sales Tax | Real Property Services](https://www.taxconnections.com/taxblog/wp-content/uploads/JASON-HENDRIX-13.jpg?resize=90%2C90&ssl=1)
The Texas Tax Code provides that sales of “real property services” are subject to Texas sales and use tax. [1] “Real property services” include the following:
- Landscaping;
- The care and maintenance of lawns, yards, or ornamental trees or other plants;
- The removal or collection of garbage, rubbish, or other solid waste other than:
- Hazardous waste;
- Industrial solid waste;
- Waste material that results from an activity associated with the exploration, development, or production of oil, gas, geothermal resources, or any other substance or material regulated by the Railroad Commission of Texas under Section 91.101, Natural Resources Code;
- Domestic sewage or an irrigation return flow, to the extent the sewage or return flow does not constitute garbage or rubbish; and
- Industrial discharges subject to regulation by permit issued pursuant to Chapter 26, Water Code;
- Building or grounds cleaning, janitorial, or custodial services;
- A structural pest control service covered by Section 1951.003, Occupations Code; or
- The surveying of real property. [2]
However, there are exceptions to the above. For example, the Texas Tax Code also provides that a service will not be considered a “real property service” if it’s purchased by a contractor as part of the improvement of real property with a new structure to be used as a residence, or another improvement immediately adjacent to the new structure and used in the residential occupancy thereof. [3] I’ve previously written about the rules applicable to contractors – that post can be found here. Interestingly, Comptroller Rule 3.291 (which lays out the tax responsibilities of contractors) notes that in these cases, a contractor must issue a “properly completed exemption certificate or other acceptable documentation” to the service provider, but no such requirement exists in the Tax Code itself.
Recent Comments