We have a pest control company in Pennsylvania, with multiple service locations across the state. We generate over $2 million in sales and remit about $150,000 in sales tax. We do charge sales tax on most transactions, but we want to confirm if there are any instances in which we should not be.

ANSWER

The BIDaWIZ Team's Answer:

Pest control services are generally subject to sales tax as per Pennsylvania Administrative Code Section 60.3. However, as is the case with most tax laws, there are exceptions. Specifically, your company should not be collecting sales tax when selling to qualified charitable organizations, volunteer fire companies, religious organizations and nonprofit educational institutions, the federal government and state/city organizations. That should not come as any surprise.

From a specific service perspective, if it is being performed on plants to remove weeds and not pests, the service is exempt from sales tax. Furthermore, pest control related to farming, dairying, agriculture, floriculture and horticulture are also exempt from sales tax.

References: Pennsylvania Administrative Code Section 60.3
State: Pennsylvania
Sales tax category: Product Taxability
Product/Service: Pest Control