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 245.1305

(b) DIETARY SUPPLEMENTS AND ADJUNCTS

245.1305 "Stay Fit Nutri-Tabs" and "Stay Fit" Powdered Formula. "Stay Fit Nutri-Tabs" consist of vitamin enriched "chewable tablets." The suggested use of the tablets is as a supplement to or a replacement for the "Stay Fit Shake" and the label indicates the product can be used for a weight loss program. It also indicates that there are 60 calories and four grams of protein in each serving of six tablets.

"Stay Fit" Powered Formula is to be mixed with nonfat milk or unsweetened juice to make a "shake" like drink which "contains the elements necessary for proper nutrition including vitamins, minerals, herbs and hipo-aids." The label indicates that the product can be used in conjunction with other food products (fish, poultry, vegetables) for a weight loss program. It also indicates that there are 60 calories and 10 grams of protein in each serving.

Both "Stay Fit Nutri-Tabs" and "Stay Fit" powdered formula do not qualify as "food products" as that term is defined under Regulation 1602. Although the labels from these products do not specifically state that the products are food supplements or adjuncts, the labels nevertheless do indicate that these products are designed to encourage weight loss in the user by decreasing the caloric intake. (Regulation 1602(a)(5)(B).)

Furthermore, both "Stay Fit Nutri-Tabs" and "Stay Fit" powdered formula do not provide the user with a sufficient amount of calories and protein in the recommended daily dosage to qualify as nontaxable "complete dietary food" under Regulation 1602. Tax applies to the sale or use of "Stay Fit Nutri-Tabs" and "Stay Fit" powdered formula since these products are sold in powdered and tablet form as dietary supplements or adjuncts and are not therefore "food products" exempt from tax under Regulation 1602. 3/7/86.