Were mudsuckers exempt as food products when purchased for use as fish bait?

Plain-English summary

The requester asked whether sales tax applied to mudsuckers.

The Board presumed the mudsuckers were purchased for use as fish bait. Although California generally taxed tangible personal property unless exempt, the food-products exemption did not cover bait.

Tax was therefore due on the sales.

Common questions

Did the fact that mudsuckers are living organisms make them exempt food?

No. The source classified the transaction by their use as bait.

Did the opinion address mudsuckers sold for human consumption?

No. It presumed use as bait.

What rule did the Board enclose?

Former Ruling 52 concerning food products.

Citations and references

• California Sales and Use Tax Law general tangible-personal-property rule and food-product exemption — applied without section citations in the official letter
• Former California Sales and Use Tax Ruling 52 — stated as enclosed and discussed; enclosure not reproduced in the official PDF
• Requester's August 16, 1964 letter asking whether mudsucker purchases were taxable — referenced; not reproduced in the official PDF
• Mudsucker purchases and presumed use as bait — transaction and use described only as a presumption; underlying product information, purchase orders, invoices, delivery records, and use evidence not reproduced in the official PDF
• Possible later clarification, sale, audit, assessment, refund claim, appeal, or other agency action — 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/245-0400.pdf

Original ruling text

245.0400

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

August 24, 1964

“B”
This is in reply to your letter of August 16 in which you inquire if there is a sales tax on mud suckers. The California sales tax applies, in general, to sales of all tangible personal property. We presume that your purchases of mud suckers are for use as bait. The exemption from the sales tax for food products does not include sales of bait. Therefore, a tax is due on those sales. We are enclosing a copy of Ruling 52, which is the Board’s interpretation of the Sales and Use Tax Law as it applies to food products. If you have any further questions, please do not hesitate to write to us again. Very truly yours,

E. H. Stetson
Tax Counsel
By Philip R. Dougherty
PRD:o’b

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