Could bulbs qualify as exempt annual plants when destroyed after one growing season?

Plain-English summary

California said a bulb could be treated as an annual plant if it was actually plowed under or otherwise destroyed at the end of one growing season.

On that condition, the bulb sale was exempt when the resulting products would be sold in the regular course of business. The source could not classify a specific variety because the audit request did not identify the type of bulb.

Common questions

Did every bulb qualify as an annual plant?

No.

What condition mattered?

The bulb had to be destroyed after one growing season.

What had to happen to the products?

They had to be sold in the regular course of business.

Citations and references

The supporting opinion does not cite a specific statute or regulation.

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/510-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/510-0020.pdf

Original ruling text

STATE BOARD OF EQUALIZATION
OFFICE CORRESPONDENCE

510.0020
Sacramento
September 19, 1952

San Jose – Auditing (RGB)

Headquarters – Sales Tax Counsel

H--- E. T--T---’s Nursery
---

Account No. G-XXXXX

This is in answer to your memo of September 17 enclosing a copy of R. B. Dunlap’s memo of September 10 concerning the question of whether bulbs purchased for resale are to be considered consumed by the purchaser. The memo does not mention the type of bulb involved. If, however, the bulb is in fact plowed under or otherwise destroyed at the termination of one growing season, we will regard it as an annual plant, the sale of which is, therefore, exempt if the products are to be sold in the regular course of business.

E. H. Stetson

EHS:ph