If you perform horticultural services (also known as customer farming services) for a farmer, you are generally subject to B&O tax under the service and other activities classification.
“Horticultural services” means services related to cultivating fruit, and other agricultural field and nursery products, specifically:
- Soil preparation for land currently used for farming (i.e., weed control before planting; removal of trees and stumps from land previously used as an orchard, in preparation for converting the land into a vineyard);
- Crop cultivation (i.e., planting, grafting, thinning, pruning, or spraying); and
- Crop harvesting (i.e., picking grapes)
If you provide horticultural services and also sell goods to a farmer for a separate, distinct charge, the charges are taxed separately. The charge for horticultural services is subject to service and other activities B&O tax, while the charge for goods is subject to wholesaling B&O tax (if the farmer provides a reseller permit) or retailing B&O tax and retail sales tax.
See WAC 458-20-209 for additional information on horticultural services.