Nurseries, Greenhouses & Florists Sales And Use Tax Guidline

Nurseries, Greenhouses & Florists Sales and Use Tax Guideline

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The refund is available under the following conditions:

(1) The Canadian resident must be in North Dakota to make a purchase and not as a tourist or temporary resident.

(2) The goods will be removed from North Dakota within 30 days of purchase and must be used permanently

outside North Dakota.

(3) Individual qualifying purchases (involving one or more items) must equal or exceed $25.00.

(4) The refund must be $15.00 or more. (Qualifying purchases may be accumulated for periods not in excess of one

calendar year in order to reach the $15.00 limit.)

(5) The Canadian resident must apply in writing to the Tax Commissioner on a form prescribed by the Tax

Commissioner.

When a nonresident comes into North Dakota and orders merchandise to be delivered outside this state, the sale is

made in interstate commerce and no North Dakota sales or use tax is due. If the nursery, greenhouse or florist makes

it a practice to deliver into an adjoining state on a regular basis, it may be required to hold a sales or use tax permit in

the adjoining state and collect tax on all deliveries made into that state. Nurseries, greenhouses or florists who are

engaged in regular deliveries into another state should check with the taxing authorities of that state to determine their

sales tax liability.

Florist Telegraph Delivery Service

The sales and use tax regulation governing the sale of flowers through a telegraph delivery service imposes the sales

tax collection responsibility upon the sending florist. On all orders taken by a North Dakota florist and sent to a

second florist for delivery, the sending florist is liable for sales tax on the receipts collected from the person ordering

the flowers.

If a North Dakota florist receives telegraph or telephone instructions from another florist for the delivery of flowers,

the receiving florist is not liable for sales or use tax, since the sending florist is the one liable for collection of sales

taxes.

Freight and Delivery Charges

In general, North Dakota sales and use tax law taxes freight, delivery and other transportation charges when made in

connection with the taxable sale of a product. If there is a separate delivery charge made to a customer for delivery

of flowers, wreaths, plants and similar items sold by nurseries, greenhouses or florists, the delivery charge is part of

the base upon which sales tax is computed. This is true regardless if the goods are delivered in vehicles owned and

operated by the nursery, greenhouse or florist or if they are sent by common carrier, United States Postal Service or

any other method of delivery or transportation.

Purchases for Own Use

Most nurseries, greenhouses and florists purchase material, equipment and supplies for their own use and not for

resale to their customers. Such items include garden tractors, tools, office equipment, office supplies, invoices and

similar items which the business will use. If these items are purchased from a supplier who holds a North Dakota

sales and use tax permit, North Dakota sales tax should be paid directly to the supplier. If these items are purchased

from a supplier who fails to charge North Dakota sales or use tax, the purchaser should include the cost of the

purchases on the Items Subject to Use Tax line of the North Dakota sales and use tax return and remit the use tax

directly to the Office of State Tax Commissioner.

Nurseries, Greenhouses & Florists Sales And Use Tax Guidline - 2004 Page 4