Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-158 - Florists and nurserymen

Current through Register Vol. 24-14, July 15, 2024
The word "florist" means a person engaged in the business of
				selling flowers and ornamental trees, shrubs or vines from an established
				business location, or one who peddles the same.
The word "nurseryman" means a person who grows, propagates or
				produces for sale upon his own lands or upon land in which he has a present
				right of possession, any flowers, trees, shrubs or vines.
Business and Occupation Tax
Retailing.
Florists and nurserymen are taxable
				under the retailing classification upon gross sales made by them to
				consumers.
Wholesaling.
Florists are taxable under the
				wholesaling classification upon gross sales for resale of articles which were
				not produced by them as nurserymen. Nurserymen are exempt from business tax
				with respect to sales at wholesale of articles produced by them in this state,
				but this exemption does not extend to the taking, cultivating, or raising of
				Christmas trees or timber.
Retail Sales Tax
Florists and nurserymen must collect the retail sales tax on
				sales of cut flowers, bulbs, corsages, bouquets, wreaths, floral designs,
				displays, potted plants, young trees, shrubs, bushes and other such items of
				tangible personal property to purchasers for use or consumption. However, sales
				by nurserymen of fruit and nut trees and berry slips or vines to farmers who
				use the same for producing fruit, nuts or berries for sale are wholesale sales
				and are not subject to the retail sales tax.
Telegraphic delivery.
Where, through the Florist's
				Telegraphic Delivery Association, one florist takes an order pursuant to which
				he gives telegraphic instructions to a second florist for delivery of flowers,
				the sending florist is a retailer of flowers and must collect the retail sales
				tax from the customer who placed the order on the basis of the total charge.
				The receiving florist is selling the flowers which he delivers, to the sending
				florist for resale and is not required to collect the retail sales tax.
				Thus:
(1) On all orders taken by a
			 Washington florist and telegraphed to a second florist, either in Washington or
			 at a point outside the state of Washington, the florist taking the order will
			 be responsible for the collection of the retail sales tax from the customer
			 placing the order.
(2) In cases
			 where a Washington florist receives telegraphic instructions from a second
			 florist located either within or without Washington for the delivery of
			 flowers, the Washington florist receiving the telegraphic instructions is
			 making a sale for resale to the sending florist on which no tax is to be
			 collected.
Telephone and telegraph charges.
The income
				derived by a florist from telephone and telegraph charges is construed to be an
				advance for the customer when such charges are paid by the florist and the
				amount thereof is billed to the customer as a separate item.
Purchase or supplies, materials, equipment, etc.
Sales by supply houses to florists and nurserymen of the following
				articles are sales for resale upon which the retail sales tax should not be
				collected:
(1) Sales of paper boxes,
			 wrapping paper, bags, twine, gummed tape or other containers sold to customers
			 along with the flowers, shrubs, etc., sold and contained therein;
(2) Sales of labels, stickers, cards which
			 are permanently affixed to the containers referred to above;
(3) Sales of wire, tin foil, ribbon and other
			 items which are attached to or become a component part of, wreaths, floral
			 displays, bouquets or corsages.
Furthermore, sales to nurserymen of seeds, fertilizers and
				spray materials for use by them in producing for sale flowers, trees, shrubs or
				vines, are not subject to the retail sales tax. (See WAC 458-20-122.)
However, sales by supply houses to florists and nurserymen of
				fuel for heating green houses or for other purposes, and sales of equipment and
				supplies for use or consumption by them are taxable under the retail sales
				tax.
Revised June 1, 1965.