Was alcohol-free Wine-Chef taxable when it concentrated natural wine flavor for adding to food after cooking?

Plain-English summary

Wine-Chef was a concentrated natural wine flavoring for food. Its production process removed the alcohol and excess water from wine.

The product was designed to be added directly to foods after cooking, providing wine flavor without adding wine during cooking.

Assistant Counsel Lawrence A. Augusta classified Wine-Chef as a flavoring extract under former Ruling 52(a)(1).

Its sales were exempt.

Common questions

Was Wine-Chef still alcoholic wine?

No. The source describes it as alcohol-free after processing.

How was the product used?

It was added directly to food after cooking to provide wine flavor.

What exempt category did counsel use?

Flavoring extract.

Citations and references

• Former California Sales and Use Tax Ruling 52, paragraph (a)(l) — source-printed lowercase-l form; cited for flavoring extracts
• California Sales and Use Tax Law — product classification applied without a section number
• Fresno office request that Legal Counsel review the seller's Wine-Chef label and advertising — referral stated; request or transmittal not reproduced in the official PDF
• Submitted Wine-Chef label and advertising describing concentrated alcohol-free natural wine flavoring, alcohol-and-water removal, and direct addition to food after cooking — described; label, advertising, formula, process specifications, alcohol analysis, 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/245-1100.pdf

Original ruling text

245.1100

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

October 21, 1969

[X]

Dear Mr. [X]:
Our Fresno office has asked me to review the label and advertising material on your new product “Wine-Chef” in regard to its classification for purposes of the Sales and Use Tax Law. In my opinion “Wine-Chef” instant wine flavoring, is an exempt food product. From the material submitted it appears that “Wine-Chef” is a concentrated, alcohol-free, natural wine flavoring for food. It is produced by a process that removes the alcohol and excess water from the wine beverage. It is designed to be added directly to foods after cooking, thereby adding the flavoring previously obtainable only by adding wine while cooking. I conclude that “Wine-Chef” is a flavoring extract. It is, therefore, exempt as provided in paragraph (a)(l) of Ruling 52. Very truly yours,

Lawrence A. Augusta
Assistant Counsel
LAA:ph