Was Protesoy exempt when users mixed it into staple foods and beverages to increase protein intake?

Plain-English summary

Protesoy was used by mixing it into staple foods and beverages to increase protein intake.

The submitted label expressly described it as a “food supplement.” Counsel also found that the product had no independent character as food.

Section 6359 excluded listed-form preparations sold as dietary supplements or adjuncts. Protesoy therefore did not qualify as exempt food, and its sales were taxable.

Common questions

Did mixing Protesoy into ordinary food make it exempt?

No. The source focused on the product's own lack of independent food character and supplement use.

What did the label call Protesoy?

A food supplement.

What nutritional purpose did it serve?

Increasing protein intake.

Citations and references

• California Revenue and Taxation Code section 6359 (as cited)
• Redacted seller's undated letter concerning Protesoy — request referenced but not reproduced in the official PDF
• Protesoy label submitted for review — label referenced and quoted in part but not reproduced in the official PDF
• Protesoy product evidence, including lack of independent food character, mixing with staple foods and beverages, protein-increase purpose, and food-supplement description — facts supplied; complete label, ingredients, formula, directions, package, nutrition data, samples, tests, invoices, advertising, and sales records not reproduced in the official PDF
• Possible later product sale, label or formulation change, 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/245-1280.pdf

Original ruling text

245.1280

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

April 14, 1969

[X]

Dear Mrs. [X]:
Thank you for writing to us concerning the taxability of the product Protesoy. Section 6359 of the Sales and Use Tax Law provides an exemption for “food products for human consumption.” The section goes on to provide, however, that the term “food products” does not include “medicines, tonics, and preparations in liquid, powdered, granular, tablet, capsule, lozenge, and pill form sold as dietary supplements or adjuncts.” It appears from the label submitted that Protesoy has no independent character as a food product but rather is used solely by mixing it with staple foods and beverages to increase protein intake. It is described on the label as a “food supplement” Accordingly, Protesoy is not a food product under the Sales and Use Tax Law, and sales of it are subject to tax. Very truly yours,

Lawrence A. Augusta
Assistant Counsel
LAA:ph