Were noncarbonated sports drinks such as Gatorade, Powerburst, and Exceed exempt from California sales tax as food products?
Apply this to your situation
This page answers the general question as of 1997. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
Senior tax counsel said noncarbonated sports drinks such as Gatorade, Powerburst, and Exceed qualified as food products under Regulation 1602(a)(1). Their sales were therefore exempt from tax.
The letter is only a short classification response. It does not describe the products' ingredients or labeling and does not address carbonated sports drinks.
Common questions
Were the named noncarbonated sports drinks taxable?
No. The letter classified them as exempt food products.
Did the opinion cover carbonated sports drinks?
No. It expressly addressed drinks that were not carbonated.
Did it analyze specific ingredients?
No. The source gives only the classification conclusion under Regulation 1602(a)(1).
Citations and references
- California Sales and Use Tax Regulation 1602(a)(1) (as cited)
- Redacted out-of-state tax section supervisor's January 13, 1997 letter to Assistant Chief Counsel Gary J. Jugum requesting sports-drink advice — referenced; not reproduced in the official PDF
- Recent Board determination that noncarbonated sports drinks qualified as food products — conclusion stated without a memorandum, ruling, date, participants, analysis, or other supporting record
- Gatorade, Powerburst, Exceed, and similar noncarbonated sports drinks — product category named; formulas, ingredient specifications, labels, packages, samples, carbonation tests, invoices, and sales records not reproduced in the official PDF
- Copy to the Out-of-State District Administrator 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/245-1066.pdf
Original ruling text
245.1066
STATE OF CALIFORNIA
JOHAN KLEHS
First District, Hayward
STATE BOARD OF EQUALIZATION
450 N STREET, SACRAMENTO, CALIFORNIA
(PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0082)
TELEPHONE (916) 324-3828
FAX (916) 323-3387
DEAN F. ANDAL
Second District, Stockton
ERNEST J. DRONENBURG, JR.
Third District, San Diego
KATHLEEN CONNELL
Controller, Sacramento
_______
JOHN CHIANG
Acting Member
Fourth District, Los Angeles
February 26, 1997
_______
E. L. SORENSEN, JR.
Executive Director
Ms. [S]
Tax Section Supervisor
[S]
P.O. Box XXXXX
---, AZ XXXXX-XXXX
RE: SY -- XX-XXXXXX
Sports Drinks
Dear Ms. [S]:
I am responding to your letter to Assistant Chief Counsel Gary J. Jugum dated
January 13, 1997, requesting advice as to the application of sales and use tax to sales of so-called
“sports drinks,” such as Gatorade, Powerburst, Exceed, etc., which are not carbonated. We have
recently determined such items qualify as “food products” the sales of which are exempt from
tax under Regulation 1602(a)(1).
Sincerely,
John L. Waid
Senior Tax Counsel
JLW:sr
cc:
Out-of-State District Administrator
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