Landscaper Resale Certificate Guide: Buy Plants, Mulch, and Materials Tax-Free

Landscaping is a materials-heavy business. A single residential project can require $2,000 to $10,000 in plants, trees, sod, mulch, pavers, and stone. A commercial project can run ten times that. Paying sales tax on those materials when you should not be is an expensive mistake.

Whether a resale certificate applies to your purchases depends on how your state classifies landscaping work. In some states, landscapers are treated as retailers selling tangible goods. In others, they are treated as contractors who consume materials. The difference determines whether you buy tax-free or pay tax at the register.

Landscaping Supplies

The Retailer vs. Contractor Problem

This is the single most important concept for landscapers to understand.

Retailer model: You sell plants and materials to the customer, then charge separately for labor to install them. In this model, the materials are a resale transaction, and your resale certificate applies. You buy tax-free and collect sales tax from the customer on the materials.

Contractor model: You provide a landscaping service that includes materials. In this model, you are the end consumer of the materials, and you must pay sales tax when you buy them. You do not charge the customer sales tax because you are providing a service, not selling goods.

Most states default to one model or the other, and the rules vary significantly.

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State-by-State Treatment of Landscapers

Texas

Texas treats landscapers as retailers of tangible goods. When you sell plants, trees, sod, mulch, stone, or pavers to a customer and install them, the materials are a taxable sale. You buy the materials tax-free with your resale certificate and collect sales tax from the customer on the materials portion. Installation labor, if separately stated, is generally not taxable. See the Texas resale certificate guide for more details.

California

California generally treats landscapers as contractors, meaning you are the consumer of the materials you install. You pay sales tax when you buy plants, rock, mulch, and other materials. You do not separately charge the customer sales tax on materials. This is a significant difference from Texas. However, if you operate a nursery and sell plants over the counter without installation, those retail sales do qualify for a resale certificate.

Florida

Florida treats the sale of plants and landscaping materials as taxable retail transactions when the landscaper transfers ownership to the customer. You can use your resale certificate to buy these materials tax-free and then collect tax from the customer. Check the Florida resale certificate guide for current rates and local surtaxes.

New York

New York has particularly complex rules. Installing plants and trees is generally considered a capital improvement to real property, which is exempt from sales tax. That means you do not collect sales tax from the customer on the installed plantings. However, you also cannot use a resale certificate to buy those materials tax-free, because you are consuming them as a contractor performing a capital improvement. For maintenance services (mowing, pruning, fertilizing), different rules apply.

What You Can Buy Tax-Free (In Retailer States)

If your state treats you as a retailer of landscaping materials, these purchases qualify for the resale exemption:

Plants and Living Materials

• Trees (shade trees, ornamental trees, fruit trees)
• Shrubs and bushes (boxwood, hydrangeas, azaleas)
• Perennials and annuals (flowers, ground cover)
• Sod and grass seed
• Bulbs and tubers

Hardscape Materials

• Pavers and flagstone installed for the customer
• Decorative gravel and river rock
• Mulch and bark (both bulk and bagged)
• Retaining wall blocks sold to the customer
• Edging materials transferred to the customer

Other Resale Items

• Soil and soil amendments (topsoil, compost, peat moss)
• Fertilizer applied as part of an installation (check your state)
• Landscape fabric installed in the customer's beds

What You CANNOT Buy Tax-Free

Even in states where landscapers are treated as retailers, these items are for your business use and are taxable:

What About Irrigation Materials?

Irrigation systems are a gray area. Pipes, sprinkler heads, valves, and controllers installed in a customer's property become part of the real estate. In many states, this is treated as a construction/contractor activity, not a retail sale. Even in "retailer" states like Texas, the installation of an irrigation system may fall under contractor rules. Check your state's specific guidance on irrigation.

The Nursery and Garden Center Angle

If you operate a retail nursery or garden center in addition to your landscaping business, the resale certificate is essential for your retail inventory. Plants, pots, garden tools, soil, and decorative items you buy for your retail shelves are all resale purchases.

Many landscaping companies run a small retail nursery on the side. Keep your retail inventory purchases (resale) separate from materials you consume on job sites (contractor use). Mixing the two creates audit problems.

Real Dollar Impact

Here is what the tax savings look like for landscaping businesses in a state with retailer treatment:

For a mid-size company spending $20,000 a month on materials, $16,800 in annual savings is the equivalent of an additional crew member's wages.

Record-Keeping for Landscapers

Landscaping audits are common because the retailer-vs.-contractor distinction is confusing. Protect yourself with solid records.

Keep These Documents

• Job-by-job invoices showing materials sold vs. labor charged
• Wholesale purchase receipts organized by supplier
• Copies of resale certificates on file with every supplier
• Sales tax returns matching your collected tax to your reported sales
• Inventory records if you run a retail nursery

Separate Your Invoices

On every customer invoice, list materials and labor on separate lines. In most retailer states, labor is not taxable if separately stated. Bundling everything into one "landscaping package" price can make the entire amount taxable.

Example job invoice:

Common Mistakes Landscapers Make

Assuming Your State Treats You as a Retailer

Do not assume. California landscapers who use resale certificates to buy materials tax-free, thinking they will charge the customer later, are misusing the certificate. Check your state's classification first.

Not Collecting Tax When Required

If your state treats you as a retailer, you must collect sales tax on the materials you sell to customers. Failing to collect and remit creates a personal liability that can follow you even if the business closes.

Using the Certificate for Equipment Purchases

Your mower, your trailer, your truck: these are not for resale. Do not put your resale certificate on file at the equipment dealer.

Ignoring Multi-State Rules

Landscapers who work across state lines need to understand the rules in each state. You might be a retailer in Texas but a contractor in the neighboring state. Our multi-state resale certificates guide covers this in detail.

How to Get Started

1. Check your state's classification. Before anything else, confirm whether your state treats landscapers as retailers or contractors. This determines whether a resale certificate will help you.
2. Apply for your certificate. If your state allows it, apply through your state's tax authority or use our application service.
3. Provide the certificate to suppliers. Give a copy to every nursery, stone yard, mulch supplier, and materials vendor you buy from.
4. Set up your invoicing correctly. Separate materials from labor on every customer invoice.
5. Register to collect sales tax. If you are selling materials to customers, you need a sales tax permit to collect and remit tax.

Apply for Your Resale Certificate Today

Related Articles

• Resale Certificates for Contractors and Construction Businesses
• What Can You Buy Tax-Free With a Resale Certificate?
• Understanding Sales Tax Nexus