Members of the California State Board of Equalization approved the publication of amendments to a regulation that will clarify hydroponic farmers may qualify for sales and use tax exemptions. The Board action was taken during its meeting on Tuesday, Sept. 23.
“Since farmers brought this issue to my attention earlier this year, I have been working to help them find a solution,” said Board Member George Runner. “I’m pleased that my colleagues have joined me in seeking to clarify that tax exemptions available to farmers are also available to hydroponic farmers.”
The amendments to Regulation 1588 add carbon dioxide (CO2) to the definition of fertilizer, thus eliminating sales tax for those who buy carbon dioxide products for hydroponic farming uses. If the regulation is ultimately adopted and codified, it will clarify that sales of carbon dioxide used in hydroponic farming may qualify for a sales and use tax exemption.
In other BOE business, the “bulk sales” tax exemption which applies to sales of gold and silver coins and bullion will remain at $1,500. The annual rate review is based upon the California Consumer Price Index