Laws, Regulations and Annotations
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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
F
240.0000 Florists—Regulation 1571
- 240.0008 Decorating, Consulting, Installing
- 240.0010 Fabrication Labor
- 240.0030 Flower Arrangement—Customer's Flowers
- 240.0040 Out-of-State Shipments
240.0000 Florists—Regulation 1571
240.0008 Decorating, Consulting, Installing. A florist's charges for labor to create or add to a flower arrangement or other decoration, e.g., decorating a premanufactured arch with flowers, are subject to tax as steps in the making of the final product. It is immaterial whether the customer owns the flowers, arch, or whether the labor is performed at the customer's event site.
A florist's charges for decorating services, such as planning a decorative scheme, designing decoration for a wedding reception, visiting the event site, and consulting with customers, are taxable when performed in conjunction with the sale or fabrication of tangible personal property.
A florist's installation charges are not subject to tax. Installing does not mean deciding where to place the property; it means the physical act of affixing or placing the property in position. For example, if the florist sells a customer a wreath or garland, the charges for the wreath or garland (including the fabrication labor) are subject to tax, but a charge for actually hanging the wreath or garland is nontaxable installation labor. However, charges for the removal and return of decorations are not includible in nontaxable installation charges. 3/20/98. (M99–2).
240.0010 Fabrication Labor. A florist contracts with two customers to periodically deliver fresh flowers, remove old flowers from vases and leave them on a nearby table or counter and arrange the fresh flowers in the now empty vases, all for a specified lump-sum price.
The action of arranging the flowers in the vases is a taxable fabrication of flower arrangements rather than exempt installation, because the customers are not merely purchasing flowers but are purchasing aesthetically arranged flowers. In addition, installation generally connotes the anchoring, attaching, and connecting of property to other property by means of such items as glue, bolts, screws, etc., to make the connection. In this case, no such attachment has been made. 5/29/91.
240.0030 Flower Arrangement—Customer's Flowers. A firm goes to a customer's garden and cuts flowers and greenery from the garden. After cutting she reconditions them (e.g., dethorns and strips some leaves from the stems) and then arranges them in a floral display. Once a week she returns and refreshes each arrangement with additional flowers and discards the spent ones. The customer is charged on an hourly basis. Occasionally, the flowers used are from the firm's own supply for which a separate charge is made.
The gathering of flowers from the garden is neither fabrication labor nor the sale of tangible personal property and the charge for this function is not subject to tax. The "reconditioning," refreshing, and arranging constitutes fabrication labor, and charges for these functions are subject to sales tax. 4/29/97.
240.0040 Out-of-State Shipments. Flowers shipped out-of-state by California florists are exempt from sales tax if the seller makes delivery through a common carrier or his own delivery facilities. 3/6/53.