Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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400.0000 PACKERS, LOADERS, AND SHIPPERS—Regulation 1630

Annotation 400.0360


400.0360 Processing—Use Before. Ice is not exempt from tax under section 6359.7 when used to cool a food product before it is sharp-frozen and stored until shipped out-of-state, which may be from one to 120 days after freezing. In the broadest meaning, the word "packing" could include all steps in the preparation of the article which is packed. But in section 6359.7, the Legislature used the word in a narrower sense. This is apparent from the joining of "Shipping or transporting" with "packing" by the conjunction "and." If the broad meaning were intended, the disjunctive "or" would have been used. Thus, the exemption applies to ice used in "packing and shipping," and it is limited to ice used in connection with both packing and shipping. Where the ice is used and thereafter something remains to be done to the product prior to the shipping, the exemption is inapplicable. 3/11/59.