Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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195.0000 CONTAINERS AND LABELS—Regulation 1589

Annotation 195.0548


195.0548 Media Mix. A company who is engaged in the business of growing and selling plants grows all of its plants from cuttings. Most of the cuttings are "stuck" into growing beds which are trenches containing a mixture of redwood sawdust, peat moss, and perlite (referred to as "media" or "media mix.") The ingredients of the media are purchased ex-tax under resale certificates. The media is necessary to provide support for the cuttings so that the roots will grow and also promotes good drainage, but does not supply nutrients or heat to the cuttings. All nutrients and heat to help growth is added separately. When plants are removed from the growing beds to prepare them for shipment, about 1/3 of the media-mix remains attached to the roots of the plants and serves to protect the roots during shipment. The cuttings for some types of plants are stuck in trays rather than growing beds. These trays are filled with the same type of media as the growing beds. When the cuttings are rooted, the entire tray including all the media is shipped to the customer.

The media mix is used as a growing or rooting media for cuttings and plants. This use occurs prior to any resale of the media to the customers and also prior to any use of the media as shipping material. The company is liable for the use tax on all purchases of media mix under these circumstances. 6/12/89.