Determine when New York landscaping work is taxable maintenance versus a non-taxable capital improvement

Steps

1. Register for NY sales tax and obtain a Certificate of Authority before performing taxable repair, maintenance, or installation services.
2. Charge sales tax on routine recurring maintenance: mowing, edging, leaf removal, fertilizing, pest control, and similar keep-it-in-condition services (full charge, including labor and materials, is taxable).
3. Treat qualifying installation work as a non-taxable capital improvement when it permanently adds to or betters the real property — e.g., a new irrigation system, a new retaining wall, a new garden bed, or new hardscape (patios, walkways, outdoor lighting).
4. Obtain a properly completed Form ST-124 (Certificate of Capital Improvement) from the property owner for any job treated as a capital improvement — without it, the job defaults to taxable.
5. Pay sales/use tax on materials purchased for a capital-improvement job (the contractor pays it, since the customer isn't charged tax on the contract price).