Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
360.0000 MISCELLANEOUS SERVICE ENTERPRISES—Regulation 1506
360.0010 Balloon Art. A customer contracts with a balloon display company to provide a "balloon bouquet" for an event. The company designs the display, provides the conduit or wire for the display frame and builds the display at the event site. When the event is over, the company cleans up and disposes of the balloons and other materials. The customer never receives title or possession of the balloons or other materials.
The customer is not contracting to purchase and retain tangible personal property. He is paying for performance of the service of providing a "visual effect" consisting of the designing, building, setting up, tearing down, and discarding of a balloon display. Therefore, balloon art is a nontaxable service. 09/20/00. (2001–3).