86 Ill. Adm. Code 130.2110 — Sellers of Seeds and Fertilizer

# Sellers of Seeds and Fertilizer

TITLE 86: REVENUE CHAPTER I: DEPARTMENT OF REVENUE PART 130 RETAILERS' OCCUPATION TAX SECTION 130.2110 SELLERS OF SEEDS AND FERTILIZER

Section 130.2110 Sellers of Seeds and Fertilizer a) Sellers of Seeds – When Liable for Tax Persons engaged in the business of selling seeds to purchasers who use the seeds in raising lawn grass, vegetables, crops, or other plants that they will use or consume and not resell, are engaged in the business of selling tangible personal property to purchasers for use or consumption and are required to remit retailers' occupation tax to the Department on their gross receipts from such sales.

b) Sellers of Seeds – When Not Liable for Tax Persons selling seeds to purchasers who employ such seeds in raising vegetables, crops, or other plants for sale are selling seeds to purchasers for purposes of resale and are not required to remit retailers' occupation tax to the Department on their gross receipts from such sales.

c) Sellers of Fertilizer – When Liable for Tax Persons engaged in the business of selling fertilizer to purchasers who use such fertilizer on lawns, home or private gardens, parks, boulevards, and the like are engaged in the business of selling tangible personal property to purchasers for use or consumption and are required to remit retailers' occupation tax to the Department on their gross receipts from such sales. For purposes of this Section, "fertilizer" means a commodity that contains one or more substances to increase the available plant food content of the soil and becomes a part of the products grown.

d) Sellers of Fertilizer – When Not Liable for Tax Persons selling fertilizer to purchasers who are regularly engaged in the business of producing agricultural products for sale are considered to be making sales for purposes of resale because, in such cases, the fertilizer becomes a part of products that are subsequently sold. Such sellers of fertilizer, therefore, are not required to remit retailers' occupation tax measured by their gross receipts from such sales. (Source: Amended at 49 Ill. Reg. 2107, effective February 5, 2025)

Section 130.2110 Sellers of Seeds and Fertilizer

a) Sellers of Seeds – When Liable for Tax

Persons engaged in the business of selling seeds to purchasers who use the seeds in raising lawn grass, vegetables, crops, or other plants that they will use or consume and not resell, are engaged in the business of selling tangible personal property to purchasers for use or consumption and are required to remit retailers' occupation tax to the Department on their gross receipts from such sales.

b) Sellers of Seeds – When Not Liable for Tax

Persons selling seeds to purchasers who employ such seeds in raising vegetables, crops, or other plants for sale are selling seeds to purchasers for purposes of resale and are not required to remit retailers' occupation tax to the Department on their gross receipts from such sales.

c) Sellers of Fertilizer – When Liable for Tax

Persons engaged in the business of selling fertilizer to purchasers who use such fertilizer on lawns, home or private gardens, parks, boulevards, and the like are engaged in the business of selling tangible personal property to purchasers for use or consumption and are required to remit retailers' occupation tax to the Department on their gross receipts from such sales. For purposes of this Section, "fertilizer" means a commodity that contains one or more substances to increase the available plant food content of the soil and becomes a part of the products grown.

d) Sellers of Fertilizer – When Not Liable for Tax

Persons selling fertilizer to purchasers who are regularly engaged in the business of producing agricultural products for sale are considered to be making sales for purposes of resale because, in such cases, the fertilizer becomes a part of products that are subsequently sold. Such sellers of fertilizer, therefore, are not required to remit retailers' occupation tax measured by their gross receipts from such sales.

(Source: Amended at 49 Ill. Reg. 2107, effective February 5, 2025)