Tax Type
Retail Sales and Use Tax
Description
Florist, nurserymen, landscapers
Topic
Taxability of Persons and Transactions
Date Issued
03-20-1987
March 20, 1987
Re: Ruling Requests/ Sales and Use Tax
Dear **************
This refers to your letter of August 22, 1986 seeking information on the correct application of the sales and use tax to transactions involving (taxpayer), and my response thereto dated January 15, 1987.
Please be advised that a portion of my January 15, 1987 ruling letter was in error when issued. The second and third paragraphs on page two of the January 15 ruling letter should be replaced with the following paragraph:
Therefore, when supplying and installing plants, trees, shrubbery, sod, etc., the taxpayer is operating correctly when it collects and reports the tax based on the sales price of such items to customers. Furthermore, the taxpayer is correct in purchasing such items exempt of the tax from suppliers if such purchases are made pursuant to valid resale certificates of exemption. In addition, the taxpayer is operating correctly when it pays the tax in making any purchases of fertilizer, seed, mulch or chemicals for use in supplying and installing plants, trees, shrubbery, sod., and should not charge the tax on such items in billing its customers.
Any purchases made by the taxpayer between January 15. 1987 and the date of this letter in reliance upon the information contained in the January 15 letter will not be held against the taxpayer in any future audit. However all future transactions should be made as set forth in this letter and in the unchanged portions of the January 15 letter.
Please let me know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner