Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
245.0000 FOOD PRODUCTS—Regulation 1602
(b) DIETARY SUPPLEMENTS AND ADJUNCTS
245.1263 Optifast 70 and Optifast 800. Optifast 70 and Optifast 800 are used as a total meal replacement in connection with a weight loss program. Patients participating in the weight loss program are medically supervised by a physician. Optifast products are available by prescription only and are not available to the general public.
Even though Optifast 70 and Optifast 800 do not qualify as "complete dietary foods" under Regulation 1602(a)(5), they do qualify as "medicines" under Regulation 1591(b)(1). Accordingly, because these products must be furnished to patient by physicians pursuant to a medically supervised program for treatment of obesity, they are nontaxable under Regulation 1591(a)(2). 3/16/92.