Q. Are pest control services purchased by a contractor and performed at a construction site subject to tax?
A. Yes Charges for pest control services performed before, during, or after construction are subject to tax. The contractor cannot purchase such services tax-free (for resale) because this service is not considered contractor labor for sales tax purposes. Nor can such services be purchased tax-free under a Purchasing Agent Appointment, Form 17, issued by the governmental unit or exempt entity.
Q. Can I buy my chemicals and other supplies for resale?
A. No. You are the consumer of all chemicals and supplies used in providing your pest control services and must pay sales or use tax on all purchases of materials, supplies and equipment used to provide your service.
Q. I provide pest control services to farmers and ranchers. Are these services subject to sales tax?
A. No. Pest control applications made to crops or land used in commercial agriculture are not subject to sales tax. This includes applications made to grain storage or livestock facilities on the farm. All other pest control applications on the farm are taxable.
Q. Are pest control services contracts which are in effect prior to October 1, 2002, subject to tax?
A. Sales tax applies to all payments for pest control services recorded as a sale on and after October 1, 2002.
Q. Are charges for a single application of a product containing both insecticide and fertilizer subject to tax?
A. Yes. Charges for the single application of a blended product containing both pest control chemicals and fertilizer or weed control chemicals are subject to tax. A retailer is not allowed to collect tax on only a portion or percentage of the charge (for insecticide) when both products are commingled in a single application.