Section 1320-05-01-.22 - FLORISTS AND NURSERYMEN(1) Sales of flowers, wreaths, bouquets, potted plants, shrubbery, and other such items of tangible personal property are subject to the Sales and Use Tax.(2) Where florists conduct transactions through a florists' telegraphic delivery association, the following rules will apply in the computation of tax liability:(a) On all orders taken by a Tennessee florist and telegraphed to a second florist in Tennessee for delivery in the State, the sending florist will be liable for the tax. All service, relay and any other charges for the orders shall be considered to be part of the selling price subject to the sales tax.(b) In cases where a Tennessee florist receives an order pursuant to which he gives telegraphic instructions to a second florist located outside Tennessee for delivery of flowers to a point outside of Tennessee, the tax will likewise be owing with respect to the total receipts of the sending florist from the customer who places the order.(c) In cases where Tennessee florists receive telegraphic instructions from other florists either without or outside of Tennessee for the delivery of flowers, the receiving florist will not be held liable for tax with respect to any receipts which he may realize from the transaction. In this instance, if the order originated in Tennessee, the tax will be due from and payable by the Tennessee florist who first received the order and gave the telegraphic instructions to the second florist.(3) Nursery stock actually produced by the nurseryman, when sold direct from the nursery, is exempt if such stock is accounted for separate and apart from other nursery stock.(4) When a nurseryman or florist sells shrubbery, young trees or similar items which are not exempt under paragraph three (3) of this rule, and as a part of the transaction transplants them to the land of the purchaser for a lump sum or a flat rate, the vendor so selling and installing must make a segregation of that portion of the charge which is for tangible personal property sold and that portion of the charge which is for installation. Failure to segregate the charge will subject the entire amount of the transaction to the Sales Tax. In cases where a nurseryman or other contractor agrees to landscape an area, the nurseryman or contractor shall be deemed to be the user and consumer of the nursery stock, fertilizer, seed and any other tangible personal property, and shall be liable for tax on the purchase price or fair market value of the tangible personal property used in connection with his contract.Tenn. Comp. R. & Regs. 1320-05-01-.22
Original rule certified June 7, 1974. Amendment filed March 3, 1983; effective June 15, 1983. Public necessity rule filed February 29, 2008; effective through August 12, 2008. Amendment filed March 31, 2008; effective July 29, 2008.Authority: T.C.A. §§ 67-1-102, 67-6-102(71) and 67-6-402.