Ethylene gas, used in Florida to process fruit, was exempt from taxation as a “plant regulator.” Under Florida regulation “Plant Regulators” are a subcategory of pesticides, which are tax exempt. Originally the taxpayer argued that the ethylene gas should be exempt under the packaging exemption allowed in Florida because the gas is used to accelerate the ripening process of fruit and to change the color of peel. The peel is not consumed and therefore is the product’s packaging. In its determination the Department refused to address this argument. Instead, it ruled in favor of the taxpayer by deeming the ethylene gas a tax exempt pesticide. (TAA No. 04A-031R, Florida Department of Revenue, July 30, 2004)