The Virginia Tax Commissioner ruled that a farmer's sales of sod to landscapers were taxable.
Sod is essentially grass with soil attached to its roots. The extra bulk of the soil allows the sod to be rolled up like a carpet. This allows for easy installation by simply unrolling the sod onto bare earth.
Virginia treats landscapers and other service providers as consumers of trees, shrubbery, nursery stock, plants, sod, and similar items that become a part of real property upon installation. The consumer must pay tax on purchases and may not collect tax from the customer. As a result, sod installers such as landscapers cannot claim the resale exemption, and the farmer's sales were taxable.