For flowers ordered through a florists' wire service, which florist collects the sales tax and at what rate, when the sending or receiving florist may be in another state?

Plain-English summary

Neal W. Murray, doing business as Hess Brothers Florist in Hamburg, New York, asked how sales tax works when flowers are ordered through a florists' wire service — both when he takes an order for out-of-state delivery and when he fills an order sent to him by another florist.

The Department applied the special florist rules in § 526.7(e): the florist that takes the order collects the tax; the florist that only fills an incoming order does not.

• You take the order → you collect the tax. When a New York florist receives an order and gives telegraphic or telephonic instructions to a second florist to deliver the flowers, the New York florist collects sales tax at the rate in effect where the order is taken. It is immaterial whether the second florist, or the delivery, is inside or outside New York.
• All the charges are taxable. Service, telephone, relay, and any other charges for such orders are part of the selling price and are taxed.
• You only fill an incoming order → you collect nothing. When a New York florist receives instructions from another florist (inside or outside New York) to make up and deliver flowers, the filling florist is not required to collect tax on any receipts it realizes from that transaction.
• These rules require wire-service membership. The special treatment applies only when the florists transact through a florists' telegraphic or telephonic delivery association. If either florist is not a member, the ordinary place-of-delivery rules govern, and the New York florist must collect New York State and local tax on any receipts it realizes.

The regulation illustrates this (Example 7): a customer orders in a 7% New York area for delivery in Florida; the New York florist arranges delivery through a wire service and collects 7% on the total the customer pays.

What this means for you

Tax follows the order-taker, at the order-taker's rate. If your shop books the sale from the customer, you charge tax at your own combined state-and-local rate — even if the flowers are made up and dropped off a thousand miles away by another shop. The out-of-state leg doesn't move the tax.

Filling someone else's wire order is tax-free to you. When another florist sends you an order to fulfill, you don't collect tax on what you receive for filling it — the shop that took the order already handled the tax.

Membership in the delivery association is the switch. The whole framework depends on both florists being members of a florists' telegraphic/telephonic delivery service. If either isn't, fall back to the normal delivery-point rules and collect New York tax on your own receipts.

Common questions

Q: I took a wire order for flowers delivered out of state. Do I charge tax?
A: Yes — at your local combined rate where the order was taken, on the full amount the customer pays (including service and relay charges). It doesn't matter that delivery is out of state.

Q: Another florist sent me an order to fill and deliver. Do I collect tax?
A: No. As the filling florist you don't collect tax on those receipts — provided both you and the sending florist are members of a florists' delivery association.

Q: What if one of us isn't a wire-service member?
A: Then the special florist rules don't apply. The ordinary delivery-point rules govern, and the New York florist must collect New York State and local tax on any receipts it realizes.

Citations and references

Regulation:

• Sales and Use Tax Regulations § 526.7(e) — place where tangible personal property is delivered controls tax; special rules for florists transacting through a telegraphic or telephonic delivery association (order-taking florist collects at the local rate; filling florist collects nothing; Example 7)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1983.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a83_8s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-83(8)S
Sales Tax
March 8, 1983

STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S820505D

On May 5, 1982 a Petition for Advisory Opinion was received from Neal W. Murray, d/b/a
Hess Brothers Florist, 28 Main Street, Hamburg, New York 14075.
Petitioner, a florist located in New York, inquires as to the taxability of orders taken for
flowers to be delivered outside the State by means of a wire service, as well as the filling of orders
on behalf of out-of-state florists where such orders are delivered by means of a wire service.
Section 526.7(e) of the Sales and Use Tax Regulations provides as follows: "(1) Except as
otherwise provided in paragraph three of this subdivision, a sale is taxable at the place where the
tangible personal property or service is delivered or the point at which possession is transferred by
the vendor to the purchaser or his designee.
(2) Except as otherwise provided in paragraph three of this subdivision, a sale of tangible
personal property, in which the title to the property passes in New York State, but in which delivery
occurs outside of New York State, is not subject to tax.
(3) Where florists conduct transactions through a florist's telegraphic or telephone delivery
association, the following rules apply in the determination of tax liability on sales through such an
association:
(i) A New York State florist who receives an order pursuant to which he gives telegraphic
or telephonic instructions to a second florist for delivery of flowers, is liable for collection of the tax
at the rate in effect in the jurisdiction where the order is taken. It is immaterial whether the second
florist is located in or outside of New York State, or whether delivery occurs in or outside of New
York State. All service, telephone calls, relays and any other charges for the orders shall be
considered to be a part of the selling price.
(ii)
In cases where New York State florists receive telegraphic or telephonic instructions
from other florists either inside or outside of New York State for the delivery of flowers, the
receiving florist is not required to collect tax with respect to any receipts which he may realize from
the transaction.
Example 7: A customer places an order for flowers with a florist located within New York
State in an area in which the combined rate of State and local sales tax is 7%. The flowers are to be
delivered in Florida. Arrangements are made through a telegraphic delivery association by the New
York State florist to have a florist in Florida make up the floral arrangement and deliver it. The New

ROBERT W. BOUCHARD, ACTING COMMISSIONER
GABRIEL B. DiCERBO , DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR
TP-8 (8/82)

-2­
TSB-A-83(8)S
Sales Tax
March 8, 1983

York florist is required to collect sales tax at the rate of 7% on the total receipts paid by the
customer.
. . ."
Accordingly, when a customer places an order with Petitioner for a floral arrangement
requiring out-of-state delivery and Petitioner gives delivery instructions to a second florist via a wire
service, and where both are members of a telegraphic or telephonic delivery association, Petitioner
is liable for collection of sales tax at the combined State and local tax rate in effect in the jurisdiction
where the order is taken. If either of the florists is not a member of a telegraphic or telephonic
delivery association, Petitioner is not liable for the collection of tax.
When Petitioner receives instructions, via a wire service, from another florist located inside
or outside of New York State, Petitioner is not required to collect tax with respect to any receipts
which he may realize from the transaction, provided both Petitioner and the other florist are members
of a florists' telegraphic or telephonic delivery service. If Petitioner and/or the other florist are not
members of a florists' telegraphic or telephonic service, Petitioner will be required to collect New
York State and local sales tax on any receipts which Petitioner realizes from the transaction.

DATED: February 17, 1983

s/FRANK J. PUCCIA
Director
Technical Services Bureau