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​Yes, for transactions on or after July 1, 2018. This includes services for mowing, trimming, weed eating, fertilizing, etc.

When performing the landscaping service of installing trees, shrubs or bushes, the service along with the trees, shrubs, bushes, mulch, fertilizer or chemicals being sold to the customer are part of the landscaper's gross receipts subject to sales tax.  The landscape service provider may issue a resale exemption for the purchase of these items since they are received by or remain with the customer after the service is performed.  Items consumed by the landscaping service provider performing the service not passed on to the customer such as gasoline, oil or tools are subject to sales tax when purchased by the landscape service provider.

When incorporating fixtures into real property, such as installing a retaining wall or a pond, the landscape service provider is acting as a construction contractor as referenced in 103 KAR 26:070.  Separately-stated charges for labor to install or repair these fixtures are not part of the landscaper's gross receipts subject to sales tax.  All items consumed in performance of this type of service are subject to sales tax when purchased by the landscape service provider.

The rate for the new sales tax on services is 6%.

According to the provisions of Kentucky Regulation 103 KAR 26:070, all sales to contractors, subcontractors, or builders of tangible personal property to be incorporated or fabricated into any structure or improvement to real property are subject to sales tax. This same treatment applies to sales of landscaping services to contractors.  The liability for the sales tax associated with the purchase of the property or services is on the contractor as the consumer.  

Therefore, contractors may not claim a resale exemption on the purchase of taxable landscaping services performed on their construction projects because they are not reselling the landscaping services. Furthermore, the sale of the finished construction project is realty that is not a retail sale subject to sales and use tax.

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