To make matters trickier, many states have caveats regarding the taxation of certain plants and trees. For example, in California, since dates ordinarily constitute food for human consumption, the sale of palm trees that produce edible dates are exempt from sales tax even if sold for landscaping or ornamental purposes. But this tax exemption does not apply to fruitless palm trees or palm trees that produce inedible types of fruit. In addition, the sale of eucalyptus tree seedlings is exempt from tax if the purchaser grows them for wood fuel purposes only.
In Texas, seeds for annual and perennial plants used for human consumption are both exempt from tax. However, while the sale of an annual plant or seedling that is used for human consumption, such as a tomato, corn, lettuce, and pea plant, is exempt from sales tax, the sale of perennial plants, including plants that produce food for humans, are subject to sales tax. These types of plants include blueberry bushes and grape vines, as well as strawberry, raspberry, and blackberry plants.
In Minnesota, sales of plants and seeds used for home vegetable gardens, lawns, or flowerbeds are taxable. But tree seedlings purchased for use as windbreaks (linear plantings of trees between crop fields designed to reduce wind speed and prevent soil erosion and wind damage to crops) are tax-exempt.
Here are a few additional interesting sales tax facts for sellers of gardening supplies:
- Guess I’ll eat some worms: In California, while natural and chemical fertilizers are exempt from sales tax, the sale of earthworms for the purpose of improving soil quality is taxable.
- Sometimes you feel like a nut: In Texas, trees, including nut, fruit, and ornamental varietals, are taxable.
- An apple a day: In Colorado, orchard trees are exempt from state and local sales tax. All other kinds of trees are subject to sales tax.
Luckily, one thing that's never taxable is your green thumb.
Learn how automating sales tax compliance can help improve it.
