Was liquid tea in half-pint containers exempt when sugar syrup and sodium benzoate were only minimal additives?

Plain-English summary

The requester asked whether half-pint containers of liquid tea were taxable.

Section 6359 specifically exempted tea. Counsel said changing tea from dry to liquid form did not affect the exemption.

The liquid product remained exempt as long as it was essentially tea and additives such as sugar syrup and sodium benzoate were minimal.

Common questions

Did liquid form make tea taxable?

No. The source says dry and liquid tea received the same exemption.

Were all additives acceptable?

The opinion only addressed minimal additives, identifying sugar syrup and sodium benzoate as examples.

What was the key product test?

The beverage had to remain essentially tea.

Citations and references

• California Revenue and Taxation Code section 6359 (as cited)
• Redacted requester's August 11, 1967 letter to C. W. Twitchell asking about half-pint liquid-tea containers — request and referral referenced; neither reproduced in the official PDF
• Half-pint liquid-tea product with sugar syrup and sodium benzoate additives — product and minimal-additive condition described; formula, ingredient specifications, additive quantities, labels, containers, samples, tests, invoices, and sales records not reproduced in the official PDF
• Possible later product 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/245-0660.pdf

Original ruling text

245.0660

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

August 25, 1967

Gentlemen:
Your letter of August 11 to Mr. C. W. Twitchell has been referred to this office for reply. You ask whether half-pint containers of liquid tea are subject to sales tax. As long as the beverage is essentially tea and additives (i.e., sugar syrup and sodium benzoate) are minimal, the item is exempt. Section 6359 of the Sales and Use Tax Law specifically exempts tea as such; whether it is dry or liquid would have no effect on its exemption. Very truly yours,

T. P. Putnam
Tax Counsel

By A. Wells Petersen
AWP;lt

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