103 KAR 27:050.
Florists and nurserymen.
RELATES TO: KRS 139.010,
139.200, 139.310, 139.330
KRS Chapter 13A
AND CONFORMITY: This administrative regulation interprets the sales and use tax
law as it applies to sales by florists and nurserymen.
Section 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.
Section 2. Where
florists conduct transactions through a florists' telegraphic delivery
association, the following rules will apply in the computation of tax
(1) On all orders
taken by a Kentucky florist and telegraphed to a second florist in Kentucky for
delivery in Kentucky, the sending florist will be liable for the tax;
(2) In cases where a
Kentucky florist receives an order pursuant to which he gives telegraphic
instructions to a second florist located outside Kentucky for delivery of
flowers to a point outside Kentucky, the tax will likewise be owing with
respect to the total receipts of the sending florist from the customer who
places the order;
(3) In cases where
Kentucky florists receive telegraphic instructions from other florists either
within or outside of Kentucky 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
Kentucky, the tax will be due from and payable by the Kentucky florist who first
received the order and gave the telegraphic instructions to the second florist.
Section 3. When a
nurseryman or florist sells shrubbery, young trees or similar items, and as
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. (SU-25; 1 Ky.R. 145; eff. 12-11-74; Tam eff. 5-20-09.)