When did adding drugs or nonnutritive ingredients preserve or defeat feed status?

Plain-English summary

Poultry or animal feed fortified with drugs or other nonnutritive ingredients for disease prevention or control remained feed. A mixture labeled and sold for specific disease treatment or cure did not.

Poultry Flushing Mash and a special mixture of Purina Grow-Chow and Chek-R-Ton qualified as feed under Ruling 47 as then cited, so their sales receipts were excluded from the audit's tax measure.

Citations and references

• California State Board of Equalization Ruling 47 (as cited)

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/110-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/110-0940.pdf

Original ruling text

STATE BOARD OF EQUALIZATION
OFFICE CORRESPONDENCE

110.0940
Sacramento
April 26, 1951

To:

Mr. C. L. Collins

Re:

D--- G. & W--- W. P--W--- G--- & M--- Co.
Xth & --- Streets
---

Acct.

B-XXXXX

The field audit report dated January 12, 1951, covering an audit of the above taxpayer for the period January 1, 1948 to September 30, 1950, has been referred to me for an opinion with respect to the application of the tax to sales of Poultry Flushing Mash and of a special mix of Purina Grow-Chow and Chek-R-Ton. The question of the application of the tax with respect to sales of poultry feeds containing drugs and other non-nutritive ingredients has been the subject of several recent discussions between members of the staff of this office and representatives of the industry. After fully exploring the nature of such feeds and purposes for which they are used, it is our conclusion that when poultry and animal feeds are fortified with drugs or other non-nutritive ingredients which are added for the purpose of preventing and controlling disease, the feed will not lose its status as such. On the other hand, if the mixture is labeled and sold for the specific treatment or cure of disease, the product will not be regarded as a feed. Applying the above rule to each of the products herein involved it is our opinion that they constitute feeds, within the meaning of Ruling 47. Accordingly, the gross receipts form the sale of such products should not be included in the measure of the tax to be determined against the taxpayer.

RGH:HB