Nurseries, Greenhouses & Florists Sales And Use Tax Guidline

Nurseries, Greenhouses & Florists Sales and Use Tax Guideline

Page 3

Contracting and Landscaping for Publicly Funded

Projects

If a nursery, greenhouse or florist agrees to plant or transplant shrubs, plants or young trees, to deliver and

spread black dirt or to lay sod, the nursery, greenhouse or florist is the user of the goods and must pay tax

on the cost of the goods installed. If these goods are purchased from another nursery, greenhouse or

florist, the cost of the goods becomes the base upon which tax is computed. The fact that these trees,

shrubs, plants, black dirt, gravel or sod may be installed for a tax exempt entity does not relieve the

contractor (nursery, greenhouse or florist) from payment of tax.

If these goods are grown or provided by the nursery, greenhouse or florist, there is no tax base and no use

tax is due.

Rentals

Some nurseries, greenhouses and florists also rent lawn equipment such as power lawn-mowers and

power rakes. The rental of tangible personal property in North Dakota is subject to sales tax. The rental

of power tools and other tangible personal property to a final user or consumer is subject to sales tax. If

the nursery, greenhouse or florist purchases equipment to rent, it should purchase the equipment for resale

without paying sales or use tax since tax will be collected on the rental fee for the equipment. The

nursery, greenhouse or florist should provide a completed resale certificate to the seller to purchase the

equipment without paying sales tax.

If a nursery, greenhouse or florist is not in the business of renting tangible personal property but has a

piece of equipment which it utilizes in the business and occasionally may rent out to a final consumer, the

rental is considered a casual sale and no sales tax applies provided the nursery, greenhouse or florist paid

tax on the cost of the equipment when it was purchased.

Rental of Plants

Some nurseries, greenhouses or florists place plants, planters or terrariums in offices and stores on a

temporary basis. Usually, there is a monthly charge for this plant rental. The charge is a rental charge

and not a service charge so the nursery, greenhouse or florist renting the plant must charge sales tax on

the rental of the plant.

Sales or Rentals to Out-of-State Residents

The sale of tangible personal property to an out-of-state resident is normally taxable if the sale takes place

in North Dakota. An exception is made for the residents of Montana who come to North Dakota and

make a purchase of $50.00 or more in taxable merchandise. The resident of Montana can purchase

personal property and take delivery in this state without payment of sales tax provided that person signs a

Certificate of Purchase. This certificate states that the person is a resident of Montana, is here for the

specific purpose of purchasing merchandise and will take the goods back to Montana for use exclusively

outside of North Dakota.

Canadian residents must pay North Dakota sales tax on all purchases made in North Dakota. However, in

some cases, the Canadian residents may be eligible for a refund of sales tax paid.

Nurseries, Greenhouses & Florists Sales And Use Tax Guidline - 2004 Page 3