Short answer: usually not because it is urban outdoor furniture. In most tax systems I know, the difference comes from who is buying it and how it will be used, not from the fact that it is outdoor seating. A residential buyer ordering a balcony set or a patio table normally pays sales tax or VAT at checkout. There usually isn’t a special residential exemption for outdoor furniture. The buyer may owe use tax if the seller doesn’t collect it.
A commercial buyer is a different story, but not automatically a cheaper one. If a café, hotel, property manager, or developer buys urban outdoor furniture for business use, they often still pay sales tax at purchase unless they can give a valid resale or exemption certificate. For example, a furniture dealer buying stock for resale may be exempt; a contractor buying for a qualifying commercial project may sometimes use a project exemption. But a restaurant buying tables for its own patio is usually the end user, so tax is generally due. The business may then be able to deduct the cost or depreciate it, and that is where the real commercial advantage often appears. In the U.S., rules like Section 179 or bonus depreciation can matter, but eligibility depends on the business, the asset, and current law.
There’s also the property-tax angle. If outdoor furniture is movable and used in a business, it may be treated as business personal property in some places. If it is bolted down or part of a building improvement, it might be treated as real property. Residential furniture is usually not separately assessed, but installed items can become part of the home. Municipal fees for sidewalk cafés or street furniture permits are not the same as taxes, though they can affect the total cost.
So I’d tell a buyer: don’t assume “commercial” means tax-free or that “residential” means a special lower rate. Check your local sales-tax rules, ask whether an exemption certificate applies, keep documentation, and talk to a tax adviser for your location and entity type. The product label matters less than the paper trail and the use.