3 expenditures. The tax consequences passed through to petitioner as a shareholder of WSC. WSC is engaged in the business of producing and supplying fertilizers, agricultural chemicals, seeds, and other agricultural products for use by farmers. WSC distributes its products to retail farm centers, wholesale distribution centers, and independent commission agents. The dispute in this case relates to WSC's fertilizer operations. During the years at issue, WSC owned and operated fertilizer production facilities in North Carolina and Virginia. It conducted most of its business in North Carolina. WSC distributes most of its fertilizer in bulk; i.e., by the truckload. Fertilizer primarily consists of three active ingredients: Nitrogen, phosphate, and potash. Fertilizer also contains smaller amounts of other nutrients known as micronutrients, as well as inactive ingredients. Farmers or other purchasers select the concentration of the three fertilizer ingredients depending on their particular needs. Soil conditions, the type of crop being planted, the expected weather conditions, and price may each influence the farmer's selection of fertilizer. For example, a corn farmer may require fertilizer in the mixture of 5-15-30 (which is 5 percent nitrogen, 15 percent phosphate, and 30 percent potash); a soybean farmer may require fertilizer in the mixture of 3-9-27.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011