Was Mycoban exempt food when it was sold as a bread preservative that inhibited mold?

Plain-English summary

The purchaser's Mycoban purchase was taxable. Based on the description supplied, tax counsel concluded that the preservative did not appear to be a food product for human consumption.

The product was added to bread to inhibit mold. The letter contrasted Mycoban with mono-sodium glutamate, which it treated as exempt food in the same response.

The official archive publishes the same complete May 14, 1952 letter for both Annotation 245.0770 and companion Annotation 245.0760. This page isolates the Mycoban conclusion without implying that the source was a separate letter.

Common questions

Did adding Mycoban to bread make it exempt?

No. The letter still concluded that Mycoban did not appear to be a food product.

What function did the purchaser describe?

Mycoban was described as a preservative used to inhibit mold formation in bread.

Did the letter analyze any other product?

Yes. The same source treated mono-sodium glutamate as exempt food for human consumption.

Citations and references

• California Sales and Use Tax Law — food-for-human-consumption exemption applied without a section number
• Sales and Use Tax Ruling 52 — stated enclosure not reproduced in the official PDF
• Redacted purchasing and stores department's March 21 and May 5 letters asking about Mono-Sodium-Glutamate and Mycoban sales — referenced; not reproduced in the official PDF
• Mycoban bread preservative and Mono-Sodium-Glutamate marketed under several trade names, including Accent — uses described; formulas, ingredient specifications, trade-name list, labels, samples, tests, invoices, and purchase records not reproduced in the official PDF
• Same complete May 14, 1952 letter separately published by the official archive for companion Annotation 245.0760 concerning Mono-Sodium-Glutamate
• Copy to Wm. R. Thomson and possible later product sale, audit, assessment, refund claim, appeal, or other agency action — copy notation present; no copy, 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/245-0770.pdf

Original ruling text

245.0770

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001
TELEPHONE (916) 445-6450

May 14, 1952

[C]
Purchasing and Stores Department
XXXX --- ----- --- XX, California
Attention:

Mr. [F], Chief Clerk

Gentlemen:
This is an answer to your letters of March 21 and May 5 concerning the application of sales tax to the sale to you of “Mono-Sodium-Glutamate” and “Mycoban”. You state that Mono-Sodium-Glutamate is a taste intensifier added to food to enable the user to perceive the flavor to a greater degree than possible without it. In itself it has no flavor. It is marketed under several trade names, one of which is “Accent.” Mycoban is said to be a preservative added to bread to inhibit the formation of mold. It is our opinion that Mono-Sodium-Glutamate is a food product for human consumption within the meaning of the Sales and Use Tax Law. Mycoban, however, does not appear to be a food product. Accordingly, sales to you of Mono-Sodium-Glutamate are exempt from sales tax while sales to you of Mycoban are subject to sales tax. For your reference we are enclosing Sales and Use Tax Ruling 52. Very truly yours,

W. W. Mangels
Assistant Counsel

MBH/ja
cc:

Mr. Wm. R. Thomson