Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
295.0290 Growing Fees. Fees for growing plants or trees are not subject to tax as fabrication labor. However, if the seller of the seeds or seedlings purports to transfer title for a stated unit price and further contracts to grow and raise the seedlings to a transplantable stage for an additional unit price, such charges are part of the sale of tangible personal property. The true object of the two contracts is for the transfer of a transplantable tree. On the other hand, if a person sells transplantable trees, but extenuating circumstances prevent the buyer from taking delivery (e.g., lack of field preparation), additional optional charges for maintaining the trees are not includable in the measure of tax. (See also Annotation 515.0720.) 5/4/71; 10/19/73; 4/17/78.