Was Hain's Linseed Oil exempt when sold as edible flaxseed oil for human consumption?

Plain-English summary

The requester submitted a label for Hain's Linseed Oil. Counsel noted that linseed oil is extracted from flaxseed and can also be called flaxseed oil.

The product was edible oil of vegetable origin sold for human consumption. The opinion therefore classified it as an exempt food product under section 6359.

Counsel also cited an annotation treating pan oil as exempt when it was essentially edible oil of animal or vegetable origin. Sales of Hain's Linseed Oil were not taxable.

Common questions

Is linseed oil the same kind of oil as flaxseed oil in this opinion?

Yes. The source says linseed oil is extracted from flaxseed and may also be called flaxseed oil.

Did every use of linseed oil qualify?

No. The conclusion was for edible vegetable oil sold for human consumption.

Why does the page title use “Hains” while the summary uses “Hain's”?

The official annotation uses “Hains,” while the supporting letter uses “Hain's.” Both forms are preserved in their respective contexts.

Citations and references

• California Revenue and Taxation Code sections 6051 and 6359(a) (as cited)
• California Sales and Use Tax Annotation 245.0860 — historical edible-pan-oil guidance cited
• Redacted seller's May 28, 1988 letter to a redacted Board recipient requesting an opinion on Hain's Linseed Oil — request and referral described; neither reproduced in the official PDF
• Submitted Hain's Linseed Oil label — stated as enclosed and relied on; label not reproduced in the official PDF
• Hain's Linseed Oil identity, flaxseed origin, edibility, vegetable origin, and human-consumption use — facts stated; underlying formula, ingredient specifications, manufacturing records, food-safety evidence, label, bottle, samples, invoices, and sales records not reproduced in the official PDF
• Possible later product sale, audit, assessment, refund claim, appeal, formulation change, 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/245-0492.pdf

Original ruling text

245.0492

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
(916) 445-8485

August 25, 1988

Mr. [O]
P.O. Box XXX
---, CA XXXXX
Dear Mr. [O]
Your May 28, 1988 letter to Mr. [D] has been referred to me for reply. You have requested an opinion whether sales of Hain’s Linseed Oil are exempt from tax. You enclosed with your letter a label from Hain’s Linseed Oil. Linseed oil is extracted from flaxseed and may also be referred to as flaxseed oil. Except where the sales are specifically exempted by statute, sales tax applies to the gross receipts of retailers from all retail sales of tangible personal property in this State (Rev. & Tax. Code § 6051). Revenue and Taxation Code Section 6359(a) exempts from taxes the gross receipts from the sale in this State of certain food products for human consumption. Sales and Use Tax annotation 245.0860 provides that a pan oil will be considered a “food product” and its sale exempt from tax if the pan oil is essentially an edible oil from animal or vegetable origin. It is our opinion that Hain’s Linseed Oil is an edible oil from vegetable origin which when sold for human consumption qualifies as a “food product” pursuant to Section 6359. It follows, the sale of Hain’s Linseed Oil is not taxable. I hope you find this information helpful. If you have any further questions, please feel free to write again. Very truly yours,

E. L. Sorensen, Jr.
Senior Tax Counsel
ELS:md