Was pomace processed with molasses exempt when sold as cattle feed?

Plain-English summary

Pomace was exempt when sold as cattle feed. The Agriculture Department advised that pomace was used as roughage and could have nutritional value depending on how it was processed; adding molasses strengthened the feed classification.

Product use controlled the result. The memorandum distinguished taxable pomace sold as a soil conditioner from exempt pomace sold as feed.

Citations and references

• No specific statute or regulation was cited in the published memorandum.

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/110-1100.pdf

Original ruling text

STATE BOARD OF EQUALIZATION
OFFICE CORRESPONDENCE

110.1100
Sacramento
May 18, 1956

To:

Stockton – Compliance (ETB)

From:

Headquarters – Sales Tax Counsel (BH:JJD)

Re:

L--- D--- Company
XXX --- ----- ---, California

Account No. K-XXXXX

We regret the delay in replying to your inquiry of December 5, 1955, concerning the taxing of sales of Pomace processed with molasses. You stated that this office has held sales of Pomace to farmers as a taxable transaction. This is true when the Pomace is sold as a soil conditioner. However, we have been advised by the Department of Agriculture that Pomace isused as roughage for cattle and that it does have nutritive value depending on the degree to which it is processed. It is our opinion that the sale of Pomace as a feed would be exempt. The addition of molasses would, of course, bolster the argument for exemption.

Bill Holden
JJD:tl