Is Tree Trimming Taxable in MN?

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Is tree trimming taxable in MN?
Pruning, bracing, spraying, surgery, or removal of trees, bushes or shrubs (including stumps) are generally subject to sales tax except: the removal of trees, bushes and shrubs that are purchased by a contractor or subcontractor to develop an undeveloped site for new construction (Minnesota Statutes, section 297A.
Read more on www.revenue.state.mn.us

If you live in Minnesota and are considering hiring a tree trimming service, you might be wondering if it is subject to taxes. The short answer is yes, Minnesota taxes most tree cutting services. There are several exceptions and complexities to be aware of, though, as with many other things in the world of taxes.

First, it’s critical to comprehend the distinction between local taxes and sales taxes. Sales tax is a charge made on the purchase of goods and services, whereas local tax is an additional charge made on top of the state sales tax by some towns and counties. The state sales tax in Minnesota is 6.875%, and depending on where you live, local taxes might range from 0.5% to 2.0%.

As an illustration, residents of Minneapolis will pay a combined sales tax rate of 8.025% (6.875% state tax plus 1.15% municipal tax). As a result, if you engage a tree trimming service in Minneapolis, you will also be charged an additional 8.025%.

There are a few exceptions to this rule, though. Sales tax could not apply if the tree trimming work is done as part of another service, such as landscaping or lawn maintenance. This is due to Minnesota’s nontaxable service classification of landscaping and lawn care. However, there will be sales tax if the tree cutting service is provided apart from landscaping or lawn care.

If the tree pruning work is done for agricultural purposes, then also constitutes an exception. In this situation, the service can also be excused from paying sales tax.

Let’s now discuss the topic of apparel and headwear for tax purposes. Clothing is typically exempt from sales tax in Minnesota. There are a few exceptions to this rule, though. The apparel might be taxable if it is made for athletic purpose or protection. Conversely, hats are typically seen as clothes and are therefore free from sales tax.

In conclusion, if you intend to use a Minnesota tree trimming service, be aware that it probably will be charged sales tax. There are a few exceptions to this rule, so it’s advisable to speak with a tax expert to find out which taxes are applicable in your particular circumstance. Additionally, keep in mind that depending on their intended usage, apparel and headgear may be excluded from sales tax.

FAQ
Keeping this in consideration, are face masks taxable?

Face mask taxation is unrelated to the subject of the article “Is Tree Trimming Taxable in MN?”

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