Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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240.0000 FLORISTS—Regulation 1571

Annotation 240.0010

240.0010 Fabrication Labor. A florist contracts with two customers to periodically deliver fresh flowers, remove old flowers from vases and leave them on a nearby table or counter and arrange the fresh flowers in the now empty vases, all for a specified lump-sum price.

The action of arranging the flowers in the vases is a taxable fabrication of flower arrangements rather than exempt installation, because the customers are not merely purchasing flowers but are purchasing aesthetically arranged flowers. In addition, installation generally connotes the anchoring, attaching, and connecting of property to other property by means of such items as glue, bolts, screws, etc., to make the connection. In this case, no such attachment has been made. 5/29/91.