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 245.1633

(d) SPECIFIC PRODUCTS

245.1633 PediaSure. When a product coming within the general definition of food product is labeled as a supplement, it is excluded from the definition of food unless qualifying as a complete dietary food for purposes of subdivision (a)(5) of Regulation 1602. It was previously concluded that Ensure and products substantially identical in labeling and content to Ensure qualify as complete dietary foods. PediaSure is labeled for use by children aged 1 to 10 and has slightly less nutritional content than does Ensure. If PediaSure's label were consistent for use by adults, its nutritional content would be insufficient to be regarded as a complete dietary food. However, when used as labeled, PediaSure has at least the same nutritional value for children aged 1 to 10 as does Ensure for adults, which is consistent with its labeling that it can be used for "total nutritional support." As such, PediaSure qualifies as a food product, sales of which are exempt from tax. 9/9/99. (2000–2).