Ezel / Tax Rulings / CA

Was Surgicel absorbable cellulose hemostat exempt as medicine?

Short answer Yes. California treated the fabric like an absorbable suture because it stopped bleeding at the applied site and the body absorbed it within about 15 days.
State
CA
Ruling
Annotation 425.0860
Tax type
Sales and Use Tax
Issued
1966-11-15
Issued by
California State Board of Equalization
Requested by
A manufacturer requesting a ruling for Surgicel Absorbable Hemostat
Topics
hemostat bleeding control
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1966. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1966
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This 1966 opinion addressed Surgicel's described oxidized-cellulose fabric, bleeding-control function, and absorption within 15 days. Current formulation, use, absorption, and law control.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

California treated Surgicel Absorbable Hemostat as exempt medicine. The knitted oxidized-cellulose fabric was applied by pressure or suturing to a bleeding area, formed a coagulated mass when saturated, and stopped further bleeding.

Because the product remained at the site and was absorbed by the body within about 15 days, the opinion compared its use to an absorbable suture rather than removable equipment.

Common questions

Did Surgicel have to be removed after use?

No under the product facts provided.

Why did absorption matter?

It supported the comparison to absorbable sutures and the medicine classification.

How was the product applied?

By pressure or suturing to the bleeding area.

Citations and references

  • California Revenue and Taxation Code section 6369 — medicine exemption applied in the letter
  • Historical California Board of Equalization Ruling 22 — prescription-medicine rule cited in the letter

Source

Original ruling text

425.0860

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

November 15, 1966

E--- B--- & Co.
P. O. Box XXXX
---, CA XXXXX
Attention:

Mr. G--- H. E--Vice President

SR – XX XXXXXX

Gentlemen:
This is in reply to your request for a sales tax ruling concerning Surgicel Absorbable Hemostat. It is our understanding that Surgicel consists of a knitted fabric made from oxidized regenerated cellulose. It is used as a hemostat to stop bleeding. It is applied to a bleeding area (by pressure or suturing) and when it is saturated with blood, it forms a coagulated mass which stops further bleeding. It need not be removed from the bleeding site because it is absorbed by the body within 15 days. On the basis of the foregoing, it appears to us that Surgicel is used in a similar manner to absorbable sutures, in that it is absorbed after application to an affected area on the body. Inasmuch as Surgicel is not removed from the body after application, it is our opinion that it qualifies as a medicine under § 6369 of the Revenue and Taxation Code and ruling 22. Very truly yours,

George A. Trigueros
Associate Tax Counsel

GAT:em

cc:

--- – District Administrator

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