Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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245.0000 FOOD PRODUCTS—Regulation 1602

Annotation 245.1093


245.1093 Thickened Juices. These products are described as specially formulated to assist health care operators with the dietary management of residents with dysphagia. The smooth consistency ensures a safe swallow. These products also come in pre-packaged containers that do not require refrigeration until opened for serving. They come in 46-ounce bulk packages and 4-ounce individual sealed cups. The pictures of the products indicate that they contain 100 percent fruit juice, and the flyers state that the juices provide 100 percent of the minimum daily RDA of Vitamin C.

Though the products are given to persons with a medical problem, they are given to deal with the patients' nutritional needs. Foods and medicines are mutually exclusive categories with different requirements for exemption from tax. (Regulation 1602(a)(4).) For that reason, we apply the rules regarding the taxation of food products rather than the sales of medicines to the sales of these products. Thus, under the criteria set forth in Regulation 1602(a)(2) and (a)(5), the thickened juices and beverages qualify as food products, the sale of which is not subject to tax. 1/21/05. (2006–1).