Current through Register Vol. 48, No. 12, March 22, 2024
a)
Florists - When Liable For Tax
Florists are engaged in the business of selling tangible
personal property at retail and are liable for payment of the Retailers'
Occupation Tax measured by receipts from sales of flowers, wreaths, bouquets,
potted plants and other such items of tangible personal property to purchasers
for use or consumption. This is true even though such items are made by the
florist on special order.
b) Transactions Involving Florist Delivery
Associations
Where florists conduct transactions through a florists'
delivery association, the following rules will apply in the computation of tax
liability:
1) On all retail orders
taken by an Illinois florist and transmitted to a second florist in Illinois
for delivery in this State, the sending florist will be held liable for
Retailers' Occupation Tax with respect to the total amount which he collects
from his customers, except for the cost of the message conveying delivery
instructions where this item is charged for separately from the selling price
of the flowers.
2) Where an
Illinois florist receives an order pursuant to which he gives instructions to a
second florist located outside Illinois for delivery of flowers to a point
outside Illinois, tax will likewise be owing with respect to the receipts of
the Illinois florist from the customer who placed the order. (Effective July 1,
1971)
3) Where Illinois florists
receive instructions from other florists located either within or outside of
Illinois 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 Illinois, the tax
will be due from and payable by the Illinois florist who first received the
order and transmitted instructions to the second florist.
c) Nurserymen
1) Where a nurseryman, landscape contractor
or florist sells shrubbery, young trees and similar items to purchasers for use
or consumption, and does not, as part of the transaction, plant the items in
the ground, the entire receipts from the transaction are subject to Retailers'
Occupation Tax.
2) However, where
the items are transplanted by the seller in the land of the purchaser, the
transaction is not subject to Retailers' Occupation Tax liability. In this
situation, the seller functions as a construction contractor and incurs a Use
Tax liability on his cost price of the items affixed to the purchaser's real
estate.