Tim Dunn – Fertilizer Tax Policy

Arizona and Florida are the only two states that currently charge tax on fertilizer which is a critical input for crop production. Seeds, seedlings, roots, bulbs, cuttings and other propagative materials for use in commercially producing agricultural, horticultural, viticultural or floricultural crops in Arizona are exempt from the use tax on tangible personal property purchased and brought into Arizona for storage, use or consumption in Arizona. In Wilbur-Ellis Company, et al. v. Arizona Department of Revenue (ADOR) (2019), the Arizona Court of Appeals Division One upheld the Maricopa County Superior Court ruling that fertilizers and pesticides are not propagative material and are therefore subject to transaction privilege and use tax. Tim Dunn talks to Arizona Farm and Ranch Radio about his work to clarify fertilizer tax policy.