After a very wet winter, it’s finally spring and many people will want to spruce up their gardens. This e-newsletter compares two garden-related classifications that are sometimes assigned together.
Classification 0005, Nurseries, applies to the propagation and cultivation of nursery stock. Classification 8004, Stores – garden supplies, applies to stores that sell nursery stock, and often also sell related garden merchandise. The WCIRB has received questions about distinguishing these operations and classifications.
Nursery stock consists of young plants that will be used for outdoor planting or decorative purposes. Classification 0005 directs that the cultivation of flowers, potted flower plants, ferns and similar potted plants that are sold for indoor decorative purposes shall be classified as 0035, Florists.
Classification 0005 applies to the propagation and cultivation of nursery stock, meaning growing plants from seed, cuttings, seedlings or small plants into larger plants. While stores assigned to Classification 8004 may transplant nursery stock that grows while it is held in inventory, these stores receive plants that are ready to sell; they water and maintain the plants, including transplanting if necessary, pending sale.
Some cultivating nurseries assigned to Classification 0005 also operate garden supply stores. In these cases, both Classifications 0005 and 8004 may apply based on the provisions of the California Workers’ Compensation Uniform Statistical Reporting Plan—1995, (USRP), Section III, General Classification Procedures, Rule 3, Multiple Enterprises.
The USRP descriptions for Classifications 0005 and 8004 are shown below:
|NURSERIES – propagation and cultivation of nursery stock
This classification applies to the propagation and cultivation of nursery stock, bedding plants, vegetable plants, bulbs and trees that are sold for outdoor planting or decorative purposes.
This classification also applies to the raising of bees for sale, honey production and rental to other concerns for pollinating crops. The processing of honey shall be classified as 6504, Food Products Mfg. or Processing.
The cultivation of flowers, potted flower plants, ferns and similar potted plants that are sold for indoor decorative purposes, as well as herbs, edible flowers and marijuana shall be classified as 0035, Florists.
The display and sale of nursery stock shall be classified as 8004, Stores – garden supplies.
|STORES – garden supplies – N.O.C.
This classification applies to stores engaged in the sale of nursery stock, including but not limited to bedding plants, vegetable plants, sod, ornamental trees and ground cover. In addition, garden supply stores typically engage in the sale of items, including but not limited to fertilizers, insecticides, lawn mowers and garden tools, barbecue supplies, cut or arranged flowers, statuary, fountains and patio furniture.
Stores engaged in the sale of fresh cut flowers, floral arrangements, indoor plants, terrariums and incidental floral supplies and giftware shall be classified as 8001, Stores – florists.
The propagation and cultivation of nursery stock shall be separately classified as 0005, Nurseries.
Lumberyards, building materials dealers and retail hardware stores shall be separately classified.
If you have a classification question that you would like covered in a future Classification and Test Audit Insight e-newsletter, email us at [email protected].