Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
245.0000 FOOD PRODUCTS—Regulation 1602
(b) DIETARY SUPPLEMENTS AND ADJUNCTS
245.1127 California Medical Diet Nutritional Weight Loss Plan. The California Medical Diet Nutritional Weight Loss Plan (CMD) is a nutritional preparation in powdered form to which water is added to make a liquid. Each serving of this product provides the user with 154 calories, 11 grams of protein, 14 grams carbohydrates, and 6 grams of fat. The maximum recommended dosage for this product (four servings per day) provides the user with a daily intake of 620 calories, 45 grams of protein, 156 grams of carbohydrates, and 24 grams of fat. The principal ingredients are milk desired proteins (Casein), fructose, and vegetable oils.
The CMD does not qualify as a food product because it is sold as a dietary supplement. The CMD is a product in powdered form and is described on its label as a diet food which is prescribed or designed to decrease the user's calorie intake and encourage weight loss. Furthermore, this product does not provide the user with a sufficient amount of calories in the recommended daily dosage to qualify as a dietary food under Regulation 1602. Therefore, tax applies to the sale or use of this product. 2/27/84.