Did California treat aspartame sugar substitutes such as NutraSweet and Equal as exempt food products?

Plain-English summary

An internal Board memorandum stated that products containing aspartame qualified as food products. It identified aspartame as the compound used in sugar substitutes such as NutraSweet and Equal.

Counsel could not locate the earlier letter that discussed aspartame generally. Instead, the memorandum sent another tax counsel's 1984 letter about Equal and suggested using that subject for an annotation. The published supporting PDF does not include the referenced attachment, but the memorandum itself expressly states the food-product conclusion.

The memo also noted that an existing annotation already listed older sweeteners called Sweeta and Sweetner as exempt food products and suggested adding Equal to that list.

Common questions

Was Equal itself included in the conclusion?

Yes. The source identified Equal as an aspartame sugar substitute and suggested adding it to the existing exempt-products annotation.

Why does the source say “Aspertame”?

That is the spelling used throughout the official memorandum and annotation. This page uses “aspartame” for clarity while preserving the official text unchanged below.

Does the published PDF contain the earlier Equal opinion?

No. The memorandum says the 1984 letter was attached, but the released PDF contains only the May 31, 1991 memorandum.

Citations and references

• California Sales and Use Tax Annotation 245.1420 (as cited for Sweeta and Sweetner)
• Assistant Chief Counsel Gary J. Jugum's suggested previous opinion letter stating that products containing “aspertame” qualify as food products — described but not identified or reproduced in the official PDF
• Tax Counsel Charles J. Graziano's 1984 letter regarding Equal and other products — described as attached but not reproduced in the official PDF
• NutraSweet, Equal, Sweeta, and Sweetner food-product treatment — products and Board position stated; underlying formulations, ingredient records, labels, product literature, transactions, invoices, and use evidence not reproduced in the official PDF
• Possible annotation adoption, later product treatment, audit, assessment, refund claim, appeal, or other agency action after the memorandum — no follow-up or final outcome 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/245-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/245-0037.pdf

Original ruling text

State of California

Board of Equalization
Legal Division (MIC:82)

Memorandum

To:

Ms. Victoria L. Arena
Tax Counsel

From:

John L. Waid

Subject:

Products Containing Aspertame

245.0037

Date:

May 31, 1991

Assistant Chief Counsel Gary J. Jugum suggested that you send a copy of a previous opinion letter stating that products containing aspertame qualify as “food products”. Aspertame is the chemical compound which comprises such sugar substitutes as “Nutrasweet” and “Equal”. I have been unable to locate a letter that discusses aspertame itself, but attached hereto please find a copy of a 1984 letter of Tax Counsel Charles J. Graziano regarding “Equal”, among other products. Mr. Jugum suggests that this topic would be suitable for annotation. Please note that Annotation 245.1420 already lists the products “Sweeta” and “Sweetner” (pre-aspertame products) as exempt food products. You could perhaps add “Equal” to that list.

JLW:es

cc:

Mr. John Abbott