Tax Guide for Florists
Industry Topics
The Basics
Sales and Use Taxes in General
In California, all retail sales of tangible personal property, which the law defines as an item that can be seen, weighed, measured, felt, or touched, are taxable unless the law provides a specific exemption or exclusion. As a retailer of flowers, your sales of flowers and other merchandise, your charges for labor, and your charges for fax, relay, and telephone services, are generally taxable.
Use tax is a companion to California's sales tax and is generally due whenever you purchase taxable merchandise without payment of California sales tax from an out-of-state vendor for use in California. For example, if you purchase equipment to use in your business from a vendor outside California and that vendor did not charge you tax, then, you need to report use tax on the purchase price of that equipment.
You also owe use tax on merchandise that you remove from your inventory and use in California when you did not pay tax at the time of purchase.
For example, if you use or give away taxable merchandise such as flowers or other merchandise you have purchased without paying tax, you owe the use tax (usually equal to the sales tax) based on the cost of the merchandise to you.
To pay use tax, report the purchase price of the taxable merchandise under Purchases Subject to Use Tax on your sales and use tax return. Those purchases become part of the total amount that is subject to tax.
Seller's Permit
Most persons who sell taxable merchandise or perform taxable labor in California, even temporarily, must register with us for a seller's permit.
Registering for a seller's permit is free, although in some cases we may require a security deposit.
If you have more than one sales location, you generally must separately register each individual location with us.
You can register with us for a seller's permit using our online services.
Be sure to let us know about any changes to your business or to your mailing or email address so we can keep our records updated and inform you of important changes in laws, tax rates, or procedures. You can update your account information through our online services by logging in with a username and password. You may also contact our Customer Service Center or any one of our offices throughout the state. Contact information is available in the Resources section of this guide.
Know Your Tax Rate
The current statewide base sales and use tax rate is 7.25 percent. However, the total sales and use tax rates are higher in areas where district taxes are imposed. Please visit the Find a Sales and Use Tax Rate webpage to look up the rate for a specific address.
District taxes are voter-approved taxes imposed by cities, counties and other local jurisdictions. District taxes are added to the statewide base rate. As a retailer, you are responsible for reporting your retail sales and paying the tax to us at the proper rate. If you make retail sales in California from a business located in a taxing district, you are generally responsible for the district sales tax. You are also responsible for collecting, reporting, and paying the district use tax when you make sales that will be delivered into taxing districts when you are considered engaged in business in the district.
Generally, you are engaged in business in a district when you meet one of the following conditions. You:
- Have a representative or agent in the district, even temporarily, who makes sales, takes orders, or makes deliveries for you,
- Have a permanent or temporary business location in the district, including a warehouse, salesroom, or office,
- Own or lease tangible or real property, including but not limited to, a computer server in the district,
- Receive rental income from the lease of merchandise located in the district, or
- Make annual sales of merchandise in California, or for delivery in California exceeding $500,000.*
* A retailer is considered engaged in business in all districts that impose a district tax if in the preceding or current calendar year the retailer and all persons related to the retailer, under Internal Revenue Code section 267(b) and the regulations thereunder, have total combined sales of merchandise in this state or for delivery in this state that exceed $500,000. All retailers meeting this threshold are responsible for collecting and paying district tax on taxable sales made for delivery in any district that imposes a district tax.
For more information on being engaged in business and to find the correct district tax rates, please see publication 44, District Taxes (Sales and Use Taxes) or our Local and District Tax Guide for Retailers.
You can look up tax rates by city and county or find the full tax rate in your city or county by going to the California City & County Sales & Use Tax Rates webpage.
Key Industry Topics
The information provided below includes common industry topics for floral businesses.
California law makes a distinction between florists and other retailers of flowers. A florist is defined by Regulation 1571 as a retailer who conducts transactions for the delivery of flowers, wreaths, and other tangible personal property through a florist delivery association utilizing telephonic, electronic, or other means for the transmission of orders. However, the term florist does not include a retailer of flowers who does not fulfill other florists' orders for the delivery of flowers and other tangible property. If you meet the definition of a florist special rules apply to orders you direct other florists to fulfill and orders you fulfill for other florists and retailers of flowers.
Sales by Florists
This section discusses the general application of tax to sales made by florists operating out of a storefront, at a mobile location, on the Internet, or from their home.
As a florist, your sales may involve customers who walk into your store or who come to your mobile location such as a street corner, swap meet, or farmer's market. In addition, your sales may include orders placed by customers through telephone, fax, Internet, or wire service. You may also fulfill orders taken by other florists or retailers of flowers and direct other florists to fulfill your orders.
Generally, your charges for the sale of flowers and merchandise, as well as related delivery and service charges (such as wire, fax, or telephone charges) are taxable. As a florist, your business might include providing other taxable services, such as decorating and designing in connection with the sale of flowers, and charges for these services are generally subject to tax.
Delivery by Another Florist
If you are a florist and you direct another florist to fulfill your sale for a customer, you are considered the retailer and are responsible for collecting, reporting, and paying the tax. This is true even if you sell to an out-of-state customer and direct an out-of-state florist to fulfill your sale.
Delivery for Another Florist or Retailer of Flowers
When other florists or retailers of flowers (who are not florists under Regulation 1571) direct you to fulfill their sale for their customer, they are responsible for collecting, reporting, and paying the tax. You are not responsible for the tax on transactions that you fulfill the sale on behalf of another florist or retailer of flowers.
Therefore, you should maintain documentation demonstrating that other retailers directed you to fulfill their sales.
Mobile Retail Sales
You must register with us for each mobile sales location that you operate.
You need to register temporary locations, even if you already hold a seller's permit for your permanent place of business. A copy of your seller's permit is required to be posted at each sales location and should be easy to see.
Many florists and retailers of flowers do not operate from a structure or retail shop. They may make sales from a vehicle, pushcart, wagon, or other portable method, or sell at a swap meet, flea market, or similar temporary location. As a florist or retailer of flowers, you are subject to similar tax reporting requirements as a florist with a retail storefront. You are generally responsible for tax at the rate in effect at the location where the sale is made. For example, if you make retail sales in Anaheim (Orange County) in the morning, you will report those sales at the Orange County rate, which is at 7.75 percent.* Later in the day, if you make retail sales in Norwalk (Los Angeles County), you will report those sales at the rate of 10.50 percent, which includes Los Angeles County and City of Norwalk district taxes.*
*This example is using district tax rates in effect as of January 1, 2026. For more information on district tax rates, see Know Your Tax Rate.
If you intend to temporarily make sales at certain venues such as swap meets or farmers' markets, you must give the event operators, the following information in writing:
- Business name
- Mailing address
- Telephone number
- Driver's license number or state-issued identification (ID) along with the name of the issuing state
- Description of the merchandise sold or displayed
- Seller's permit number
Even though it is not required, we recommend you provide a copy of your seller's permit to the event operator.
You may provide the required information to the operator of the event by using CDTFA-410-D, Swap Meets, Flea Markets, or Special Events Certification. The form is also available by calling our Customer Service Center at 1-800-400-7115 (TTY:711).
You are required to collect, report, and pay tax on the sales made at these venues using the applicable tax rate in effect for the jurisdiction.
You must notify us by writing, calling, or by visiting one of our offices if you no longer make sales at a business location, including a temporary selling location registered under your account.
For more information see publication 111, Operators of Swap Meets, Flea Markets, or Special Events.
Delivery Charge
Whether tax applies to delivery charges involves several factors. Your delivery charge may be exempt from tax if all of the below conditions apply:
- You hire a common carrier, such as the United States Postal Service, or a contract carrier to deliver your flowers or other merchandise to your customer, and
- You separately state the delivery charge on the invoice, and
- The delivery charge is not more than what you paid the common carrier or contract carrier (actual cost of delivery) to deliver the flowers or other merchandise.
For taxable sales, a delivery-related charge is taxable when:
- You do not keep records that show the actual cost of the delivery.
- You deliver merchandise with your own vehicles.
- You make a separately stated charge for fuel surcharge or handling, and so on.
- You include a delivery charge in the unit price of the item sold.
- Your charge to your customer includes or is the cost of shipping the merchandise to your business location (freight-in).
- You make a sale for a delivered price (sales agreement specifies that delivery is included in price, whether delivery charge is listed separately, included in per-item cost, or listed as freight prepaid).
For more information about the application of tax to property delivered by you (or your employees or your own facilities) please see publication 100, Shipping and Delivery Charges.
Flower Delivery Service
As an operator of a flower delivery service (also known as a floral relay service, a floral wire service, a flower delivery association, a retailer network service, or other similar terms) your business will generally involve soliciting direct sales and facilitating sales for other florists through your website or through your toll-free telephone number. You may be considered a florist under Regulation 1571 if you also fulfill orders for other florists.
A flower delivery service may offer proprietary networks, clearing house services, or operate as affiliate marketing sources for member florists.
When you make a direct retail sale to your customer where you:
- directly contract with the customer,
- bill the customer based on the prices you set, and
- direct another florist in California to fulfill the order,
you are responsible for collecting, reporting, and paying tax. This is also true if you meet the definition of florist in California and make a sale to an out-of-state customer and direct an out-of-state florist to fulfill the order.
If you are not a florist under Regulation 1571 because you do not fulfill orders for other florists, then your sales to out-of-state recipients that are fulfilled by an out-of-state florist are not subject to California tax. You must maintain documents to establish that property was delivered out of state.
Common Exemptions and Exclusions
Food
The sale of a combination package may or may not be taxable depending on the value of the nonfood merchandise.
You may sell a combination package that includes food (such as candy and dried fruit) and nonfood merchandise (such as teddy bears, flowers, and wine). If more than 10 percent of the retail value of the entire package, not including the container (such as a tray, box, or basket), represents the value of nonfood products, tax is due based on the value of the nonfood merchandise if you have documentation establishing the cost of the individual components. If you do not maintain records to support the cost of individual items, the entire package may be taxable.
For example, the retail price for Combination Package A is $100 and includes a Teddy bear, flowers, and candy in a container (box). The retail value of the entire package excluding the container is $88 ($21 + $42 + $25 = $88).
| Item | Cost | Retail Value |
|---|---|---|
| Teddy Bear | $8.40 | $21.00 |
| Flowers | $12.00 | $42.00 |
| Candy | $10.00 | $25.00 |
| Container (box) | $4.80 | $12.00 |
| Total components | $35.20 | $100.00 |
Ten percent of the retail value of the package excluding the container ($88) is $8.80. The retail value of the nonfood merchandise is $63 ($21 for the teddy bear plus $42 for the flowers). Because the value of the nonfood items ($63) is greater than 10 percent of the retail value of the package excluding the container ($8.80), tax is due on the $63 retail value of the nonfood merchandise. However, if you do not maintain records showing the cost or retail value of the individual components, tax is due on the full $100 selling price of the package.
If the retail value of the nonfood products is 10 percent or less of the value of the entire package, not including the container, and the value of the container is 50 percent or less of the retail value of the entire package, the selling price of the entire package is not subject to tax.
For example, the retail price for Combination Package B is $100 and includes flowers, candy, dried fruit in a container (basket). The retail value of the entire package excluding the basket is $85 ($7 + $50 + $28 = $85).
| Item | Cost | Retail Value |
|---|---|---|
| Container (basket) | $6.00 | $15.00 |
| Flowers | $2.00 | $7.00 |
| Candy | $20.00 | $50.00 |
| Dried fruit | $11.20 | $28.00 |
| Total components | $39.20 | $100.00 |
Ten percent of the $85 retail value of the package excluding the basket is $8.50. The retail value of the nonfood item (flowers) is $7, and the retail value of the container (basket) is $15. Because the value of the nonfood merchandise ($7) is less than 10 percent of the retail value of the package excluding the container ($8.50), and the value of the container ($15) is less than 50 percent of the retail value of the entire package ($50), no tax is due on the sale of Combination Package B. However, if you do not maintain records showing the cost or retail value of the individual components, tax is due on the full $100 selling price of the package.
The sale of a combination package that only contains food, such as chocolate, cookies, or fruit, is generally exempt from tax.
For more information, see publication 106, Combination Packages and Gift-Wrapping.
Sales for Resale
You may have customers who purchase merchandise from you to resell in their own business.
If your customer timely provides you with a valid resale certificate and you accept it in good faith, you do not owe tax on that sale because the sale is considered to be a sale for resale.
For more information, see publication 103, Sales for Resale.
Labor Charges
Generally, labor charges for fabrication labor are taxable.
Your charges for labor to create or add to a flower arrangement or other decorations (such as decorating a premanufactured arch with flowers) are taxable because this is considered as fabrication labor which is an essential step in producing the tangible personal property purchased by the customer. These labor charges are taxable whether the customer owns the flowers or the arch, or whether the labor is performed at the customer's event site.
Other labor charges may also be taxable. Your charges for decorating services (such as planning a decorative scheme, designing decorations for a wedding reception, visiting the event site, or consulting with customers) are taxable when these services are performed along with the sale or fabrication of tangible personal property.1
Generally, labor charges for separately-stated installation labor are not taxable. If you install and attach a finished product in place for a customer, tax does not apply to the separately stated charge for installation labor.
For example, if you install hooks on the wall at a wedding venue where you affix your customer's garland, the separately stated labor charge for such installation labor is exempt from tax. However, labor charges associated with arranging flowers into the garland prior to affixation are generally taxable as fabrication labor.
For more information, see publication 108, Labor Charges.
Sales in Interstate Commerce
Tax applies to amounts charged by California florists under Regulation 1571 who receive orders for the delivery of flowers, wreaths, and so on to points outside California and direct florists outside California to make the delivery.
As a florist under Regulation 1571, you owe tax on the entire sales price, including charges for telephone, fax, or relay fees, and any service fee or other charge. The out-of-state florist who completes the order for delivery does not owe sales or use tax on amounts received for the transaction.
On other transactions, if you intend to ship flowers or other merchandise outside of California, your sales are generally exempt from tax if the following conditions are met:
- The contract of sale requires shipment out of state,
- The merchandise is shipped directly to the customer located outside California, and
- You use your own business vehicles, the U.S. Postal Service, or a common carrier to ship the merchandise.
Example:
Suzette owns a small retail gift shop located in Victorville, California that sells various merchandise. The merchandise includes items such as food, stuffed animals, balloons, greeting cards, and flowers. Suzette's sales consist mostly of storefront sales and on occasion she makes online sales through her website.
Hank goes online to Suzette's gift shop website and makes a purchase for a flower bouquet for his wife to be delivered to his residence located in Reno, Nevada. Suzette's gift shop ships the bouquet directly to Hank. Additionally, Hank is not an out-of-state florist with the intention of making the delivery. Suzette's sale is an exempt sale in interstate commerce and is not subject to tax.
For more information, see publication 101, Sales Delivered Outside of California, and Regulation 1571.