People v. Pacific Guano Co.

STURTEVANT, J.

The plaintiff sued the defendant claiming $606.43 as taxes and penalties due the plaintiff under the provisions of division VI (§§ 1151-1300.29) of the Agricultural Code. The defendant filed an answer denying the material allegations of the complaint. Thereafter the parties prepared and filed an agreed statement of facts. The trial court made conclusions of law in favor of the plaintiff and from the judgment entered thereon the defendant has appealed.

During the period October 1, 1934, to and including June 30, 1937, the defendant was a dealer in commercial fertilizer and duly registered as such under section 1030 of the Agricultural Code. During the same period California Packing Corporation was also a registered dealer. It produced commercial fertilizer from fish meal and sold the same. In making its sales it complied with all the provisions of division V of chapter 7 of the Agricultural Code. During the same period the defendant sold California Packing Corporation 1883.94 tons of commercial fertilizer. The time said sale was made defendant did not know whether California Packing

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Corporation intended to resell, use, store, or otherwise dispose of said fertilizer. Later it transpired that California Packing Corporation used said fertilizer upon lands owned or leased by it. If under the terms of the Agricultural Code the sale to California Packing Corporation was subject to tax, the amount of the assessment, $606.43, is the correct amount. However, the defendant earnestly contends that said sale was not subject to tax.

At the time of the sale sections 1021 and 1038 of the Agricultural Code provided as follows:

“Article 2. Fertilizing Materials.

“1021. The provisions of this article apply to any substance or mixture of substances intended to be used for promotion or stimulating the growth of plants, increasing the productiveness of plants, improving the quality of crops or producing any chemical or physical change in the soil.

They do not apply to sales for export outside the State, nor to sales of agricultural minerals to any registered producer, manufacturer, importer, agent or dealer in agricultural minerals, nor to mies of fertilizing materials to any registered producer, manufacturer, importer, agent, or dealer in commercial fertilizers.”