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 245.1412


245.1412 Ashitaba Percent Powder and Tablets. Manufacturer's sales brochure for "Ashitaba Percent" powder and "Ashitaba Percent" tablets includes descriptions of the products as "vegetable supplements" that are "approved by the medical and pharmaceutical field in clinical laboratories to have exceptional nutritional value contained in the element chalcones which is essential to good health." The brochure also contains statements that it "helps strengthen the immune system, lowers cholesterol, balances the pH, and aids in preventing ulcers and many other ailments;" that "chalcone actually prevents and slows down the growth of cancer cells." Furthermore, the brochure states "there is a lot of vitamin B12 contained in the element of the "Ashitaba" and "vitamin B12 activates brain cells, increases concentration."

The Board has previously concluded that promotional literature is part of the labeling or packaging of the product that the literature describes. Therefore, even if "Ashitaba Percent" product label did not describe it as a food supplement, if the promotional literature continues to describe the product as a food supplement, the product will be considered as described on its package or label as a food or dietary supplement or adjunct. Based on this information, both of these products are excluded from the definition of "food products" by subdivision (a)(4) of Regulation 1602. 3/29/96. (Am. 2010-1).