Was Calistoga Juice exempt because it contained natural fruit juice?

Plain-English summary

Calistoga Juice contained natural fruit juices, but it was also carbonated.

California's food-products exemption did not include carbonated beverages. Assistant Chief Counsel Gary J. Jugum therefore classified Calistoga Juice as a carbonated beverage and concluded that its sales were taxable.

The presence of natural fruit juice did not change that classification. In this short opinion, carbonation was the decisive fact.

Common questions

Did the natural fruit juice make the product exempt?

No. The source expressly said the product remained a taxable carbonated beverage despite containing natural fruit juices.

What product fact controlled the result?

Carbonation. The opinion did not identify another basis for taxation.

Does this classify a noncarbonated Calistoga product?

No. The opinion addressed the carbonated product described in the May 1990 request.

Citations and references

• California Revenue and Taxation Code section 6359 (as cited)
• California Sales and Use Tax Regulation 1602 (as cited)
• Redacted seller's May 9, 1990 letter asking about Calistoga Juice sales — request referenced but not reproduced in the official PDF
• Calistoga Juice product evidence, including carbonation and natural fruit juices — facts supplied without a complete label, formulation, ingredients, juice content, package, samples, tests, invoices, or sales records 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/245-1415.pdf

Original ruling text

245.1415

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
(916) 445-3723

May 31, 1990

Mrs. [B]
Chief Executive Officer
[B]
XXXX --- --- #X
--- ---, CA XXXXX
Dear Mrs. [B]:
This is in response to your letter of May 9, 1990. You have inquired as to whether sales tax applies to your sales of Calistoga Juice. Calistoga Juice is a carbonated product, which contains natural fruit juices. Under Revenue and Taxation Code section 6359 and our Regulation 1602, “Food Products,” sales tax does not apply to retail sales of property classified as “food products”. However, the term “food products” does not include carbonated beverages. Calistoga Juice is classified as a carbonated beverage, even though it is made with natural fruit juices. Thus, your sales of Calistoga Juice are subject to tax.

Very truly yours,

Gary J. Jugum
Assistant Chief Counsel
GJJ:sr