Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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F

245.0000 FOOD PRODUCTS—Regulation 1602

Annotation 245.0315

(a) IN GENERAL

245.0315 Combination Package—Flower Pot Bread Baking Kits. These "Baking Kits" are composed of a six-inch clay pot with a package of bread mix inside the pot. The clay pots are covered with decorative wrapping and imprinted paper. The clay pot represents 20 percent of the total cost of the product.

Since the cost of the clay pot represents 20 percent of the total cost of the baking kit, it is expected that the retail value of the clay pot represents more than 10 percent of the retail value of the baking kit, exclusive of the container. Therefore, a segregation must be made and the sales tax is measured by the retail sales price of the clay pot. (Regulation 1602(b).) 11/14/95.