Whisk together flour, baking powder, baking soda, and salt. In a large bowl, with an electric mixer on medium, beat butter until fluffy. Add half the flour mixture on low; beat in sugar, sour cream, egg, and lemon rind until thoroughly combined. Mix in remaining flour mixture. Divide dough in half. Form each half into a disk; wrap in plastic. Chill 2 hours or overnight.
Heat oven to 350°F. Roll out dough on a lightly floured surface to a 1/8-inch thickness. Cut out with Santa-shaped cookie cutters. Reroll scraps to make more cookies.
Bake on ungreased baking sheets 7 to 9 minutes. Cool on sheets 5 minutes; then cool on racks. Decorate as desired.