Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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240.0000 FLORISTS—Regulation 1571

Annotation 240.0008

240.0008 Decorating, Consulting, Installing. A florist's charges for labor to create or add to a flower arrangement or other decoration, e.g., decorating a premanufactured arch with flowers, are subject to tax as steps in the making of the final product. It is immaterial whether the customer owns the flowers, arch, or whether the labor is performed at the customer's event site.

A florist's charges for decorating services, such as planning a decorative scheme, designing decoration for a wedding reception, visiting the event site, and consulting with customers, are taxable when performed in conjunction with the sale or fabrication of tangible personal property.

A florist's installation charges are not subject to tax. Installing does not mean deciding where to place the property; it means the physical act of affixing or placing the property in position. For example, if the florist sells a customer a wreath or garland, the charges for the wreath or garland (including the fabrication labor) are subject to tax, but a charge for actually hanging the wreath or garland is nontaxable installation labor. However, charges for the removal and return of decorations are not includible in nontaxable installation charges. 3/20/98. (M99–2).