New York tax law allows a sales tax exemption for certain types of work related to trees, shrubs, and stumps. Although we cannot give tax advice, we do exempt customers from sales tax in several circumstances.
Tax exempt organizations such as churches, not-for-profit, and government entities can provide the ST-119 Exempt Organization Certificate and will not be charged sales tax.
Contractors that hire us to do tree work in conjunction with a larger Capital Improvement Project or who will re-sell our services and bill the customer directly will not be charged sales tax. These contractors must provide us an ST-120 Resale Certificate tax exemption form.
Capitol Improvement Projects that involve tree work are exempt from sales tax. Because it is sometimes difficult to determine what is considered a capital improvement, the State of New York provides online guidance and customers can complete a form ST-124 Cert of Capital Improvement and provide this to the contractor. We will accept this form prior to invoicing and will not charge sales tax. You may still be liable for any sales tax due based on New York State Law.
The best example of the Capital Improvement exemption as we understand it is, if you have a large tree that is dying and may hit your house, removing it is a repair/maintenance. However, if the same tree is being removed to allow for a new tree, porch or addition to be added, you may be exempt.
Please refer to professionals for guidance. These forms must be properly submitted to us prior to invoicing. We are not required by law to accept the exemption form but customers can also apply for a refund of any sales tax paid that qualifies as exempt.