The fee is also taxable if paid in the form of a trade discount or billed on a cost plus basis. The sale and installation of tangible personal property is taxable, even if the installation charge is separately stated. Examples include, but are not limited to, drapes, slipcovers, bedspreads, curtains, blinds, shades, and rugs. An interior decorator should furnish the supplier with a signed copy of the Annual Resale Certificate when tangible personal property is purchased for resale. Tangible personal property purchased to use in improving real property is taxable based on the cost price of the materials and supplies used or consumed in performing the job.
Some examples are paint and wallpaper.
Mirrors are treated as real property improvements when affixed by nails, screws, glue, cement, or in a similar manner. Carpet is also considered real property when affixed by nail, glue or in some other manner so that it becomes the finished floor. If not installed in the above manner, mirrors and carpet are treated as tangible personal property. An interior decorator's fee is exempt as a professional or personal service when materials or supplies are not used or sold. To qualify for exemption, the fee must be solely for consultation or designing services and unrelated to any tangible personal property transaction.