Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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F

245.0000 FOOD PRODUCTS—Regulation 1602

Annotation 245.1430

(d) SPECIFIC PRODUCTS

245.1430 Food Products—Snack Foods, Candy and Confectionery. During the period July 15, 1991 to November 30, 1992, "Food Products" excluded snack foods, candy, confectionery and nonmedicated chewing gum as such were taxable. Beginning December 1, 1992, these items are exempt food products and tax does not apply.

"Snack foods" means:

  • Cookies
  • Crackers (excluding soda, graham, and arrowroot crackers)
  • Potato chips
  • Snack cakes and pies
  • Corn or tortilla chips
  • Pretzels
  • Granola snacks (i.e. bars and squares)
  • Popped popcorn
  • Fabricated chips
  • Fabricated snacks

"Snack foods" include only items that are sold in a form suitable for consumption without further processing such as cooking, heating, or thawing.

"Snack foods" does not include:

  • Ice cream, milk and milk products
  • Vegetables, including dehydrated vegetables
  • Fruit and fruit products
  • Baby foods
  • Doughnuts, breads, pastry, and other bakery products
  • (other than cookies, crackers, snack cakes and pies)
  • Nuts, nut meats and seeds
  • Unpopped popcorn
  • Cereals
  • Meat and meat products
  • Beef jerky and similar dried meat products
  • Natural pork skins

"Fabricated snacks" means snacks made from components, including food components, which are processed and formed. This includes items such as grain cakes, shoestring potato snacks, food bars or squares, and extruded snacks such as curls, twists and puffs. The term does not include "meal replacement bars" which supply per serving (as defined by the manufacturer), at least 250 calories and 25% of the U.S. RDA of vitamins and minerals (as established by regulations of the United States Food and Drug Administration).

"Snack cakes and pies" means cakes or pies which are baked or fried in individual serving sizes or cut and pre-wrapped or pre-packaged for subsequent sale in individual serving sizes, whether sold individually or packaged together. A package of single-serving items is subject to tax. Large whole cakes and pies are not taxable. Snack cakes or pies which are prepackaged in individual serving sizes are taxable. Slices of cakes or pies which are packaged to go at the time of the sale are not subject to tax.

Crackers are thin crisp wafers or biscuits, usually made of unsweetened dough. Bread items such as flat breads, matzo bread, break sticks and toast are not crackers. Crackers specifically excluded from the definition of snack foods are soda (saltines), graham and arrowroot crackers.

Baking Goods. Products which may be considered a confection but are packaged and marketed for sale as cooking or baking products, such as baking chocolate, marshmallows and glazed fruit are exempt.

Mixed Products. Products pre-packaged in individual serving sizes which contain a mixture of both food products and candy or snack foods (e.g. trail mixes, cheese and crackers) are taxable regardless of the ratio of food products to candy or snack foods. Packages which are not in single serving sizes but contain a mixture of both food products and candy or snack foods are taxable if 50% or more of the mixture contains snack foods or candy.

Combination Packages. The application of tax to combination packages which contain both food products (e.g. fruit) and nonfood products (e.g. snack foods, wine or toys) will depend upon the essential character of the complete package. If more than 10 percent of the retail value of the complete package, exclusive of the container, represents the value of the nonfood merchandise, a segregation must be made and measured by the retail selling price of such nonfood merchandise. Examples of products requiring such a segregation would be (1) the sale of a box containing a bottle of wine, a package of crackers, wedges of cheese and fruit or (2) cereal containing a prize or toy.

Candy and Confectionery includes chocolate-coated nuts, candied fruits, crystallized fruits and glazed fruits. Preparations of fruits, nuts or cereals in combination with chocolate, sugar, honey, candy or other confectionery are taxable unless sold for baking purposes. The method used in packaging and distributing these preparations, inclduing the kind and size of container used, will be considered in determining the primary use for which these preparations are sold.

Labeling. If the term "snack" is used in the name of a product or on its label, the product will be presumed to be taxable unless it is clearly excluded from the definition of a "snack food."

The following examples of taxable and exempt items have been determined by the Board of Equalization to be consistent with the changes in statutory law concerning snack foods, candy and confectionery.

Sample Taxable Items

  • Ak-mak Sesame Crackers
  • Almond Joy
  • Almond Cookies
  • Almond Roca
  • American Classic Minced Onion Crackers
  • Artificial Pork Skins (i.e. made from grain products)
  • Bagel Chips
  • Bama Pecan Pies (individual size)
  • Bavarian Pretzel
  • Bean Chips
  • Bolands Cream Crackers
  • Bolands Snap Crackers
  • Breath Mints
  • Bremner Cracked Wheat
  • Brown Rice Chips
  • Brownies (individually prepackaged)
  • Bubble Gum
  • California Diet Energy Bar
  • Candied Apples
  • Carmel Popcorn
  • Carnation Breakfast Bars
  • Carrs Water Biscuit
  • Cheese 'n Crackers
  • Cheese Puffs
  • Cheetos
  • Cheezits
  • Chico Popcorn Cakes
  • Chico Rice Cakes
  • Chico San Cheddar Popcorn
  • Chocolate Bars
  • Chocolate Chip Cookies
  • Chocolate covered fruit and nuts
  • Chocolate covered grahams
  • Cinnamon Animal Crackers
  • Combos Snacks
  • Corn chips
  • Cracker Jacks
  • Cupcakes
  • Diet Cookies
  • Ding Dongs
  • Dolly Madison Zingers
  • Doritos
  • Durkee French Fried Potato Sticks
  • Estee Sugar Free Candy
  • Fi-bars
  • Fiddle Faddle
  • Fig Newtons
  • Figurines
  • Flavortree Cheddar Sticks
  • Flavortree Party Mix
  • Fortune Cookies
  • Fruit Gems
  • * Fruit Roll-ups
  • Funyons
  • Gamesa Animalitos
  • Ginger Snaps
  • Graham Cookies
  • Graham Cookies with creme fillings
  • Granny Goose Bugles
  • Granola Squares
  • * Grist Mill Sharks
  • Gum
  • Gummi Bears
  • Hain Sesame Crackers
  • Hain Vegetable Crackers
  • Hain Rice Cakes
  • Hapi Crazy Mix
  • Hapi Soy Bits
  • Hapi Tokyo Mix
  • Harvest Day Fruit Pies (individual size)
  • Hershey Bars
  • Hershey Granola Bars
  • Hostess Ding Dongs
  • Hostess Sno-Balls
  • Hostess Suzy Q's
  • Jack La Lane Granola Bars
  • Jelly Beans
  • Keebler Tato Skins
  • Keebler Toasted Midley Crackers
  • Keebler Deluxe Graham Cookies
  • Keebler O'Boisies
  • Kelloggs Nutri Grain Bars
  • Kudos
  • Lemon Drops
  • Licorice
  • Life Savers
  • Lu Little School Boy Cookies
  • M & M's
  • Macaroons
  • Marie Lu Original Biscuits
  • Matzo Crackers
  • Moms Cookies
  • Nabisco Heydey Bars
  • Nabisco Marshmallow Twirls
  • Oatmeal Cookies
  • Onion Flavor Rings
  • Oreos
  • Peak Frean Tea Biscuits
  • Peanut Butter 'n Crackers
  • Pepperidge Farms Cheddar Goldfish
  • Petit Fours
  • Pik-nik Fabulous Fries
  • Pillsbury Figurines
  • Potato Chips
  • Pretzels
  • Pringles
  • Quaker Chewy Granola Bars
  • Reeses Peanut Butter Cups
  • Ritz Crackers
  • Sandwich Cookies
  • Screaming Yellow Zonkers
  • Sesame Snack Sticks
  • Shoestring Potato Snacks
  • Stella D'Oro Breakfast Treats
  • Stella D'Oro Pfeffernuesse
  • Sugar Cookies
  • Tic Tacs
  • Toffee Peanuts
  • Tortilla Chips
  • Tootsie Rolls
  • Trail Mixes with carob (individual serving sizes)
  • Trail Mixes with glazed fruit (individual serving sizes)
  • Triscuit
  • Truffles (candy)
  • Turnovers
  • Twinkies
  • Weight Watcher Bars
  • Wel Pac Shrimp Chips
  • Yogurt covered nuts and fruit
  • Zingers

* Taxable Effective 4-1-92

Sample Exempt Items

  • Ak-mak Armenian Cracker Bread
  • Apple Chips
  • Arrowroot Crackers
  • Baby Biscuits
  • Bagels
  • Baking Chocolate
  • Bear Claws
  • Beef Jerky
  • Beer Nuts
  • Bread
  • Break Sticks
  • Cakemate Candy Cake Decorations
  • Carnation Slendar Bars
  • Carrot Chips
  • Cheese
  • Chicharones (made from meat products)
  • Cinnamon Rolls
  • Corn Nuts
  • Cream Puffs
  • Dolly Madison Gem Donuts
  • Donuts (large or small)
  • Dried Fruit
  • Eclairs
  • Fried Pork Skins (made from meat products)
  • Fruit Juices
  • Gatorade
  • Gerber Baby Pretzels
  • Glazed Fruit for baking
  • Graham Crackers (cinnamon, honey, and shapes)
  • Granola Cereals
  • Hershey Semi Sweet Chocolate Chips
  • Honey Roasted Nuts
  • Hye Roller Soft Cracker Bread
  • Ice Cream
  • Lunchables
  • Marshmallows (baking product)
  • Matzo Bread
  • Meat
  • Melba Toast
  • Microwaveable Popcorn
  • Muffins
  • Nestles Butterscotch Morsels
  • Nuts
  • Pastries
  • Pepperoni Sticks
  • Pizza Rolls
  • Poptarts (requires further processing—heating)
  • Popsicles
  • Pudding
  • Ralston Chex Snack Mix
  • Ryvita Crispbread
  • Seeds
  • Soda Crackers (saltines) low fat, no salt, and wheat
  • Strudel
  • Unpopped Popcorn
  • Valley Lahvosh Cracker Bread
  • Wasa Crispbread
  • Zwieback Toast. 2/10/92.