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nafex - Re: [NAFEX] permit to sell seeds

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  • From: Heron Breen <breen@fedcoseeds.com>
  • To: North American Fruit Explorers <nafex@lists.ibiblio.org>
  • Subject: Re: [NAFEX] permit to sell seeds
  • Date: Fri, 08 Jul 2005 20:37:04 -0500

My response is that it is entirely illegal, and is just asking to be
challenged.
Selling seeds by mail is interstate commerce which is federal jurisdiction.
If a
state wishes to tax a citizen within its state for planting seeds, so be it,
but to
tax an externally located company or individual is akin to a illiegal
shakedown.
Similar rules in other areas of business are intended to protect local
industries,
but even these laws are, in my limited legal opinion, totally BS. States can
regulate items sold within their borders. If the seeds are bought from a
company in
Illinios, the state of Minnesota has no jurisdiction. Once those seeds leave
the
company's warehouse, they are property of the customer who paid for them.
They can
either entirely ban seeds from outside the state, or regulate those sold
within the
state via seed racks in hardware stores and have the hardware store pay the
tax
(since they are usually buying the seeds outright, not consignment) or tax
the
large feed and seed stores.
There are related rules that involve seeds in a certain state having to
adhere to a
standard of quality/germination, but federal standards are generally used as
guide
lines for interstate seed sales.
I know of a similar, but pointedly distinct law, regarding the registration
of
pesticides and herbicides within to be sold within a state. Apparently, a
company
must pay the state of Maine (and I assume other states) a fee of $50
annually(?) to
sell their products within the state. But I still feel that this is
illegitmate.
The differences between this and the seed sales example is that the fee is
flat and
not related to gross/sales/profits/etc and that these are "controlled"
substances
falling under the oversight of various consumer and enviromental
agencies/laws.
Seeds are not held to much regulation besides their germination and species
(which
ones allowed in which states).
Another example of seed regulations concerning mailorder companies is the
Watermelon Fruit Blotch issue. Some states do not allow any Watermelon seeds
within
their borders that are not free from this disease. So, mailorder companies
require
that customers from these states sign a waiver from, making them now
responsible
for whether the seeds are free from disease. The company is no longer liable.
So, speaking within reading the regulation or understanding it purpose, and
therefore basically ignorantly, I would say the permit fee is ridiculous and
I
would continue to sell seeds in the state of MN. Of course, I do not speak
for the
seed company I work for, and I don't make those decisions anyway. Sounds like
Minnesotans may want to have a chat with their Ag Dept, and find out how this
whole
thing came about. I suppose I should be expecting a notice at the company I
work
for, and I will let folks know what we do about it.
Just a case of the government seeking out those last few non-taxed/permitted
things,
Heron Breen
zone 4, Maine

On Fri Jul 8 14:41 , 'tanis cuff' <tanistanis@hotmail.com> sent:

>My initial reaction is "Geez, you'd think MN would be able to think of
>better ways to raise money!" I can't see that the cost of administering
>this tax would make it a break-even deal for MN state gov't.
>
>
>My 2nd thought, how many companies will just stop marketting in MN? And
>will other states see the damage, and NOT want to be the next to suffer?
>
>
>----Original Message Follows----
>From: "Mark Lee"
>To: "'North American Fruit Explorers'"
>Subject: [NAFEX] permit to sell seeds
>Date: Fri, 8 Jul 2005 13:39:44 -0700
>
>This was sent to me by the owner of a small seed company in Illinois.
>
>[...We recently received a notice from the Minnesota Department of
>Agriculture regarding the "sale of seeds intended for planting in
>Minnesota". The gist of it is that firms who market seeds by mail need
>to purchase a permit from the state of Minnesota to do so. The annual
>permit ranges from $50 to $2000, depending on the annual gross sales of
>the company.... Should this catch on, individual states initiating
>similar taxes will strain small seed companies, perhaps putting them out
>of business, leaving none but the giant, "agribusiness" seed companies
>to sell seeds by mail.]
>
>That is a scary thought. I don't think it was intended to put little
>seed companies out of business, but it could have that effect. $50
>minimum * 50 states = $2500. A steep barrier for entry. Any comments.
>
>-Mark Lee, Seattle
>
>
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