Washington DOR Clarifies Tax Rules for Landscaping, Horticultural Services

The Washington Department of Revenue (DOR) has issued tax guidance clarifying how landscaping, horticultural, and trail grooming services are classified and taxed under Washington state law. The guidance establishes that horticultural services for farmers are subject to Service and Other Activities B&O tax with no retail sales tax due on services, while landscaping services to homeowners and commercial clients fall under Retailing B&O tax with retail sales tax required based on job location. Key distinctions include different treatment for government contracts (with U.S. Government projects varying by type, and Fannie Mae/Freddie Mac properties exempt from retail sales tax), public road ...