Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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510.0000 SEEDS, PLANTS AND FERTILIZERS—Regulation 1588

Annotation 510.0596


510.0596 Cottonseed Meal Used in Growing Mushrooms. Since there is no commercial fertilizer manufactured for growing mushrooms, mushroom growers formulate a compost with various ingredients, including cottonseed meals which contain close to 5% nitrogen to fertilize the mushroom spawn with essential ingredients necessary to produce commercial mushrooms. The growers purchase the ingredients separately and mix them together to make the compost.

Mushrooms are products which are used as food for human consumption. The only issue is whether the cottonseed meal is within the definition of "fertilizer." A "commercial fertilizer" is defined in section 14522 of the Food and Agricultural Code as including any substance which contains 5% or more of nitrogen. Based upon representation that the cottonseed meal contains close to 5% nitrogen and that it contains essential ingredients necessary to produce commercial mushrooms, the cottonseed meal is an agricultural mineral exempt from tax. 8/7/92.