Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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F

245.0000 FOOD PRODUCTS—Regulation 1602

Annotation 245.1125.750

(b) DIETARY SUPPLEMENTS AND ADJUNCTS

245.1125.750 Boost Nutritional Drinks. Boost and Boost Plus are labeled as nutritional energy drinks. Boost appears to be marketed as a product designed to increase generally a person's intake of protein, vitamins and/or calories. It does not appear to be promoted as a product for use as a person's sole source of nutrition. Therefore, under Regulation 1602(a)(5), it is not a food product for purposes of the section 6359 exemption (the calories and protein amounts it provides are also insufficient for it to constitute a complete dietary food for purposes of the exemption). The Boost Plus labels and web site literature state that its purpose is to help gain or maintain weight. A daily serving gives more than enough calories but not enough protein or vitamins and minerals to be considered a complete dietary food. These products are thus food supplements or adjuncts excluded from the definition of "food products" by Revenue and Taxation Code section 6359(c). (Regulation 1602(a)(5).) Consequently, the sale of Boost and Boost Plus are subject to tax. 3/11/03. (2003–3).