Fertilizer Receives Tax Exempt Status

CNGA has been working closely with Hicks & Associates, our lobbyist via GreenCO on HB19-1329 to exempt wholesale companies from paying tax on fertilizer inputs. We’re happy to report the bill passed and is headed to the Governor for signature!

During an audit with the Department of Revenue, a CNGA member was informed that they would need to pay sales tax on fertilizer inputs. The member contacted CNGA and we started research. Through our research, we found that Colorado Revised Statute 35-12-103 (30) considers fertilizers used at nurseries & greenhouses as “specialty fertilizers” and therefore are not tax exempt. Since our industry is considered agriculture, and all of the other agriculture industries are exempt, we took action . . .

to introduce a bill to fix the issues.

Representative Arndt, from Fort Collins, Representative McKean from Loveland, Senator Sonnenberg, from Sterling and Senator Garcia from were all co-sponsors on the bill. The bill fixes the revised statue issue by removing nurseries, greenhouses & hydroponic growers from the tax-exempt exclusion. It also includes a clause that the act applies to sales occurring prior to, on, or after the effective date of this act.

This is a big win for our members and industry! Being charged sales tax on all fertilizer inputs would be a tremendous burden for growers and it doesn’t make sense given other inputs (soil, water, etc.) are not taxed.

Lastly, it’s a great example of what membership in a trade organization can do for you and your business. CNGA utilizes revenue to support GreenCO due in large part to the legislative support provided by Hicks & Associates, our lobbying firm. Without the access to our lobbyists, this would not have been possible. If you have issues that arise at your company, feel free to contact us and see how we can help.


About the Author: Allison Gault, CAE, is the Executive Director of the Colorado Nursery & Greenhouse Association. 

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