Sourcing of florist sales. Minn. Stat. § 297A.668 was amended by adding a subd. 9 to modify the sales tax sourcing rules for florist sales when one retailer transmits a florist sales order to another retailer of florist sales through a floral network service or floral delivery association, by whatever means of communication (often referred to as a “telefloral order”). In that case, the sale is sourced to the location of the retailer taking the order from the customer, rather than to the location of the floral delivery. This is the current practice in most states. Sales where the Minnesota retailer delivers floral or nursery products inside or outside of Minnesota, whether to the customer or a third party, continue to follow the general sourcing rules of subdivision 2 (usually where delivered). Also defines “florist sales” to list a variety of floral or nursery products. Effective for sales and purchases made after September 30, 2011.

Sec. 5. Minnesota Statutes 2010, section 297A.668, is amended by adding a
subdivision to read:

Subd. 9. Florist sales. (a) Notwithstanding other subdivisions of this section, the
retail sale of “florist sales” is sourced as follows:
(1) When a Minnesota retailer takes a florist sales order directly from a customer,
whether or not the customer is physically present in Minnesota when placing the order,
and delivers the items to the customer or a third person, either within this state or outside
this state, and regardless of the delivery method, the florist sale is sourced according to
subdivision 2.
(2) When one retailer transmits a florist sales order to another retailer of florist sales
through a floral network service or floral delivery association, whether by telephone,
telegraph, Internet, or other means of communication, the florist sale is sourced to the
location of the retailer which originally takes the order from the customer and accepts
payment.
(b) For purposes of this subdivision, florist sales means sales at retail of flowers,
wreaths, floral bouquets, potted plants, hospital baskets, funeral designs, seeds, nursery
seedling stock, trees, shrubs, plants, sod, soil, bulbs, sand, rock, and all other floral
or nursery products.
EFFECTIVE DATE.This section is effective for sales and purchases made after
September 30, 2011.

2011 Sales and Use Taxes Legislative Bulletin (2011 1st Special Session)

1^st Special Session, Chapter 7

Get all the details at our 2011 State Fair Page