Were meat labels exempt when they showed price information along with weight, cut, and grade?

Plain-English summary

A machine printed meat-package labels showing weight, the item's price, price per pound, and the meat's cut and grade.

California said an item was treated as a taxable price tag only when it functioned exclusively as a price tag. Because these labels also described the meat through cut and grade information, the paper rolls used to print them were exempt.

Common questions

Did including a price make the label taxable?

No. It also contained product description.

What distinction did counsel draw?

An exclusively price-only tag was taxable; a label combining price with product information could qualify.

Citations and references

• Sales and Use Tax Ruling 49, Containers and Labels — historical label and price-tag rule applied; copy listed as enclosed but not included in the official PDF
• Requester's undated inquiry — meat-labeling machine, printed label fields, and tax question described; no separate request reproduced in the official PDF
• Copy to Stockton Auditing — copy recipient listed; no separate transmittal record supplied 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/195-1920.pdf

Original ruling text

195.1920
STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

September 27, 1955
REDACTED TEXT
Attention:

REDACTED TEXT

Gentlemen:
You sell a meat-labeling machine. This machine prints from a roll of paper a label showing the weight of the package, the price of the item, the price per pound, and the cut and grade of the meat. You inquire concerning the application of tax to your sales of the rolls of paper to meat markets. We enclose a copy of Ruling 49, Containers and Labels. Ordinarily, a label which is attached to the container of an item which is sold is not taxable. You will note from the last sentence of the ruling that a price tax is taxable. For the purposes of the Law, however, the only thing which is regarded as a price tag is one which is exclusively a price tag. As used, this particular meat label shows not only the price but also the cut and grade of the meat. It is our opinion, therefore, that it is an exempt label, and that your sales of the paper from which the label is printed are not taxable. Very truly yours, Bill Holden Associate Tax Counsel BH:tj Enclosure: Ruling 49 cc:

Stockton - Auditing