Were baseball-card waxpacks taxable when each combination package generally included a stick of gum?

Plain-English summary

The Board described baseball-card “waxpacks” as combination packages generally containing one stick of gum and varying quantities of baseball cards.

Assistant Chief Counsel Gary J. Jugum stated that sales of the waxpacks were taxable. The letter referred the requester to page 6 of a September 1989 Tax Information Bulletin, but that enclosed bulletin is not part of the published supporting PDF.

The source does not provide a further allocation or valuation analysis between the gum and cards. It simply states the taxable result for the combination package.

The same letter separately confirmed that Coca-Cola and other carbonated beverages were taxable; this page addresses only the waxpacks.

Common questions

Did including a stick of gum make the waxpack exempt?

No. The source states that the waxpack sale was taxable.

Does the published opinion explain how to allocate value between gum and cards?

No. It refers to an enclosed Tax Information Bulletin that is not included and gives no further allocation analysis.

Did the letter address loose baseball cards sold without gum?

No. It addressed the described combination waxpacks.

Citations and references

• September 1989 California Tax Information Bulletin, page 6 — as cited; stated copy and any additional enclosures not reproduced in the official PDF
• California Sales and Use Tax Regulation 1602(a)(2) — as cited for Coca-Cola and other carbonated beverages
• Redacted seller's September 25, 1989 request asking about baseball-card waxpacks and Coca-Cola — referenced; not reproduced in the official PDF
• Waxpacks generally containing one stick of gum and varying quantities of baseball cards — package described; product specifications, gum and card identities, packaging, samples, item values, allocation records, invoices, and sales records not reproduced in the official PDF
• Coca-Cola and other carbonated beverages — separately addressed in the same letter; formulas, labels, samples, carbonation records, 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/245-1098.pdf

Original ruling text

245.1098

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
916-445-3723

September 26, 1989

[X]

Dear Sir or Madam:
This is in response to your request of September 25, 1989, that we advise you as to how sales tax applies to sales of baseball card “waxpacks.” “Waxpacks” are combination packages generally consisting of one stick of gum and various quantities of baseball cards. Sales of baseball card “waxpacks” are taxable. See page 6 of our “Tax Information Bulletin” dated September 1989, copy enclosed. You also inquired as to whether sales tax applies to sales of Coca-Cola. Sales of Coca-Cola and other carbonated beverages are taxable. See our Regulation 1602, “Food Products,” paragraph (a)(2). Sales of “food products” are nontaxable. However, sales of carbonated beverages are taxable. Very truly yours,

Gary J. Jugum
Assistant Chief Counsel
GJJ:sr
Encs.