Were preloaded, nonreusable Visistat skin staplers exempt from California sales and use tax?

Plain-English summary

California had previously concluded that the Visistat skin staplers did not qualify for the medicine treatment because the information then available suggested they were refillable and reusable.

The company then confirmed that the staplers were sold prefilled and could not be reused. On those corrected facts, counsel said the staplers were containers sold with contents whose sale was exempt as medicine, so sales of the preloaded staplers were exempt.

Common questions

Why did California change its answer?

The company's follow-up corrected the factual assumption about refillability and reuse.

Did the letter exempt every skin-stapling product?

No. The conclusion rests on this product being sold preloaded and nonreusable.

Citations and references

• Regulation 1591 — medicine treatment discussed in the letter
• Regulation 1589(b)(1)(C) — exemption for the qualifying preloaded container stated by counsel
• Requester's August 21, 1995 letter — preloaded and nonreusable product facts confirmed; separate letter not reproduced in the official PDF
• Senior Staff Counsel John L. Waid's July 27, 1995 letter — earlier refillable-and-reusable factual assumption and adverse conclusion summarized; separate letter not reproduced in the official PDF
• Prior Board determination — qualifying staplers treated as containers sold with exempt medicine; date, author, identifier, and separate source not supplied in the official PDF
• Regulation 1589 — copy listed as enclosed but not included in the official PDF

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/195-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/195-1208.pdf

Original ruling text

195.1208

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

JOHAN KLEHS
First District, Hayward

LEGAL DIVISION - MIC 82
450 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0082)

DEAN ANDAL
Second District, Stockton

Telephone No.: (916) 324-3828
Fax No: (916) 323-3387

ERNEST J. DRONENBURG, JR.
Third District, San Diego
BRAD SHERMAN
Fourth District, Los Angeles

September 26, 1995

KATHLEEN CONNELL
Controller, Sacramento
────────

Mr. M--- W. P--General Ledger Supervisor
P--One --- Drive
P.O. Box XXXXX
R--- T--- Park, NC XXXXX

BURTON W. OLIVER
Executive Director

RE:

SC OH XX-XXXXXX
Skin Staplers

Dear Mr. P---:
I am answering your letter to me dated August 21, 1995, following up on mine to you of July 27, 1995, wherein I determined that the Visistat Skin Staplers did not qualify as medicines under Sales and Use Tax Regulation 1591, based on my conclusion, from the information you supplied, that the staplers were refillable and reusable. You now confirm that they are sold pre-filled and are not reusable. We have previously determined that such staplers constitute containers sold with contents the sale of which are exempt from tax under Regulation 1591. As a result, sales of such pre-loaded staplers are exempt from tax under Regulation 1589(b)(1)(C). For your information, I have included a copy of Regulation 1589. I hope the above discussion has answered your question. If you need anything further, please do not hesitate to write again. Sincerely,

John L. Waid
Senior Staff Counsel
JLW:sr
Enclosure:
cc:

Reg. 1589

Out-of-State District Administrator - OH