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 245.0840

(a) IN GENERAL

245.0840 Pan Oils. Tax does not apply to sales of oils with a vegetable oil or lard base where these oils are ultimately consumed by humans as an ingredient of bread or other bakery products. These products fall within the definition of food products for human consumption set forth in section 6359 of the Sales and Use

Tax Law and are ultimately consumed by humans as an ingredient of the bread or other bakery products. On the other hand, the tax applies with respect to the sale of mineral oil or oil with a mineral oil base used for greasing pans or as divider oil, even though it may find its way into the bakery products. The product is not within the definition of food products for human consumption and is definitely purchased for some reason other than resale.

Mixtures containing beeswax, mineral oil, or other ingredients not within the definition of food products cannot be regarded as food products for human consumption for purposes of the sales tax. Therefore, the sale of these mixtures for use as pan grease, divider oil, and the like, are taxable retail sales. 3/24/52.