Minnesota
Sales Tax Excerpt From Business Taxes
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Information submitted by Phillip
The
Tax Code As It Applies To Floral Trade
Minnesota
Rules, Table of Chapters
Table
of contents for Chapter 8130
8130.8900 FLORISTS AND NURSERIES.
Subpart 1. Taxable transactions. The following
transactions are subject to sales or use tax:
A. Sales at retail by florists, nurseries, or other
producers or vendors of flowers, wreaths, bouquets, potted
plants, hospital baskets, funeral designs, seeds, nursery
seedling stock, trees, shrubs, plants, sod, soil, bulbs, sand,
rock, and all other floral or nursery products, whether grown by
such vendors or not, are taxable sales of tangible personal
property.
When a florist or nursery prepares a floral arrangement for
a customer, the entire transaction is taxable, including all
charges for labor and materials even if separately stated on the
bill.
When a florist or nursery prepares a floral arrangement for
a customer who has provided the flowers or other materials, the
labor charge by the florist or nursery constitutes fabrication
labor and is taxable.
B. Retailers of floral or nursery products who also
perform lawn, garden, arborist, tree, bush, and shrub services
must collect tax on those services. Lawn, garden, arborist,
tree, bush, and shrub services are taxable pursuant to Minnesota
Statutes, section 297A.01, subdivision 3, paragraph (j), clause
(vi). These services are taxable even though the services are
provided incident to the sale of tangible personal property.
C. Purchases of machinery, equipment, implements,
tools, accessories, appliances, contrivances, furniture and
fixtures, and fuel, electricity, gas, or steam used for space
heating or lighting are taxable unless purchased for resale.
D. When a Minnesota florist or nursery sells flowers
or other tangible personal property to an out-of-state customer
and delivers the items to the customer or a third person within
this state, that transaction is taxable. An out-of-state
customer is one who is not physically present in Minnesota when
placing the order. This item only applies to orders taken
directly from the customer by the Minnesota florist or nursery.
This item does not apply to telegraphic orders as described in
subpart 3.
E. When a Minnesota florist or nursery sells flowers
or other tangible personal property and delivers the items to
someone other than the person who made the purchase, the
transaction is taxable even if delivery is to a point outside of
Minnesota. The transaction is a sale at retail made in this
state and thus is subject to sales tax.
Subp. 2. Exempt transactions. The following transactions
are not subject to sales or use tax:
A. Sales of trees, plants, seeds, or similar items to
persons for use in agricultural production of tangible personal
property for resale are exempt (upon presentation of proper
exemption certificates to the vendors). For example, stock
purchased for the purpose of reforestation where forest products
will be later harvested in the form of Christmas trees, posts,
poles, pulpwood, etc., are exempt. See part 8130.5500.
B. Purchases by florists, nurseries, or other like
producers or vendors of plants and other tangible personal
property which are ultimately sold with the plants, including
nonreturnable containers, descriptive labels, stickers, and
cards affixed to such containers, peat moss, sand, gravel,
crushed rock, shavings, sticks, trellises, and plant ties, to be
placed in pots or cans with plants, are exempt as purchases for
resale. Purchases of nursery stock, seeds, plants, spray
materials, and fertilizers to grow nursery stock for resale are
exempt as items to be used or consumed in agricultural
production. Purchases of electricity and fuel used or consumed
in production are also exempt, except that the portion used for
space heating or lighting is taxable. See part 8130.5500.
C. When a Minnesota florist or nursery sells flowers
or other tangible personal property and delivers the items to
the customer outside the state by common carrier, parcel post,
United States mail, or the florist's or nursery's own delivery
vehicles, the transaction is exempt.
Subp. 3. Telegraphic orders. When florists or nurseries
conduct transactions through a florist telegraphic delivery
association, or otherwise by telephone, telegraph, or other
means of communication with other florists or nurseries, the
following rules apply in the application of the tax:
A. Where an order for flowers, wreaths, or other
tangible personal property is taken from a customer by a
Minnesota florist or nursery and transmitted to another florist
or nursery located within or outside of Minnesota for delivery,
the florist or nursery which initially takes the order from the
customer is required to collect the tax.
B. Minnesota florists or nurseries who receive orders
from other florists or nurseries, whether located within or
outside this state, for delivery of flowers, wreaths, or other
tangible personal property to locations either within or outside
of Minnesota, are not required to collect the tax.
C. The sales tax does not apply to telegraph or
telephone charges if such charges are separately stated from the
price of the flowers or other tangible personal property ordered
by the customer.
However, the tax does apply to relay or handling charges
paid to the florist or nursery which sends an order whether
these charges are separately stated or not.
The sales tax does not apply to transportation charges to
the extent they are separately stated and the transportation
occurs after the retail sale.
Subp. 4. [Repealed, 16 SR 2055]
STAT AUTH: MS s 270.06; 297A.29
HIST: 16 SR 2055
Current as of 04/28/00
