Does sales tax apply when a Christmas tree farm charges consumers to choose, cut, and remove their own trees?

Plain-English summary

Christmas tree farms allowed consumers to enter, choose a tree, cut it, and remove it for a price.

Associate tax counsel concluded that these transactions were sales of tangible personal property. When made at retail, they were subject to California sales tax.

Common questions

Did it matter that the consumer cut the tree?

No. The letter still classified the choose-and-cut transaction as a sale of tangible personal property.

Did the letter identify any exemption?

No. It simply said retail choose-and-cut sales were taxable.

Citations and references

• No statute or regulation was cited in the supporting letter.

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/150-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/150-0100.pdf

Original ruling text

150.0100
STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

November 22, 1965
REDACTED TEXT
Gentlemen:
You ask our advice as to the application of sales tax to “Choose and Cut” Christmas tree
transactions. We understand that owners and operators of Christmas tree farms allow consumers
to come onto the farm and, for a price, to cut and remove Christmas trees.
Such transactions are sales of tangible personal property and, if at retail, are subject to sales tax.
We shall advise our various offices of this conclusion.
Sincerely yours,

John H. Murray
Associate Tax Counsel
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