701—211.38(423) Lawn care, landscaping, and tree trimming and removal.
	211.38(1) Lawn care.
	a. 	In general. Persons engaged in the business of lawn care are selling a service subject to sales tax. Lawn care is a taxable service regardless of the age of the person performing the service. Lawn care services performed on properties including but not limited to cemetery grounds, golf courses, parks, and residential or commercial properties containing one or more buildings or structures are subject to sales tax.
	b. 	Definitions. For purposes of this rule:
“Landscaping” includes services related to the arrangement and modification of a given parcel or tract of land so as to render the land suitable for public or private use or enjoyment.
“Lawn” means an open space between woods or ground that is covered with grass and is generally kept mowed or required to be kept mowed.
“Lawn care” includes but is not limited to services related to mowing, trimming, watering, fertilizing, reseeding, resodding, and the killing of weeds, fungi, vermin, and insects that may threaten a lawn.
	c. 	Not taxable. The mowing of grass within a ditch is not a taxable service.
	211.38(2) Landscaping.
	a. 	In general. Persons engaged in the business of landscaping are selling a service subject to sales tax.
	b. 	Landscape architects. Services that require licensure as a “landscape architect” pursuant to Iowa Code section 544B.2 are not subject to sales tax under this rule if those services are performed by a licensed landscape architect, are separately stated, and are separately billed as a charge for landscape architecture.
	c. 	Exempt. Landscaping services performed on or in connection to new construction, reconstruction, alteration, expansion, or the remodeling of real property are not subject to sales tax. 701—Chapter 219 contains additional information on new construction, reconstruction, alteration, expansion, and the remodeling of real property.
	211.38(3) Tree trimming and removal.
	a. 	In general. Persons engaged in the business of tree trimming, tree removal, and stump removal are selling a service subject to sales tax. This includes but is not limited to removal of any portion of a tree, including branches or a trunk.
	b. 	Shrubs with woody stems or trunks. For purposes of this rule, tree trimming and tree removal include the trimming or removal of any shrub that has a woody main stem or trunk with branches.
	c. 	Sale of cut wood. Persons engaged in the business of tree trimming and tree removal who cut wood from the trees that they trim or remove into sizes suitable for sale as firewood and sell the wood as firewood are engaged in the sale of tangible personal property. The tree trimming or removal is not a sale for resale. The sales price from the sale of this wood is subject to sales tax.
This rule is intended to implement Iowa Code section 423.2(6)“ab.”
[ARC 6704C, IAB 11/30/22, effective 1/4/23]