WAC 458-20-158
Florists and nurserymen. 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.
[Order ET 70-3, § 458-20-158 (Rule 158), filed 5/29/70,
effective 7/1/70.]