Were the seller's prefilled saline and Heparin flush syringes exempt from California sales tax?

Plain-English summary

California's ordinary rule treated syringes as taxable devices used to apply medicine or treatment.

The Board recognized a narrower container rule: a syringe sold prefilled with exempt medicine could be exempt when it was disposable and intended for one use only. But the seller's materials did not adequately describe the saline and Heparin flush products or their use, so the memorandum called for more information and did not decide that those particular syringes qualified.

Common questions

Was being prefilled enough by itself?

No. The memorandum also required exempt medicinal contents, disposable construction, and one-time use.

Did California finally exempt the seller's products?

No definite opinion was given on the incomplete facts.

Citations and references

• California Sales and Use Tax Regulation 1591(c)(2) — syringes generally treated as excluded devices
• California Sales and Use Tax Regulation 1589(b)(1)(C) — container rule applied conditionally to a disposable one-use syringe sold filled with exempt contents
• Annotation 425.0462 — cited in the source for the ordinary treatment of syringes

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/425-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/425-1150.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Mr. Steve Guest
Return Review Section – MIC:35

From:

John L. Waid
Tax Counsel

Subject:

X----------------------Pre-filled Syringes

425.1150

Date:

April 24, 1995

By memorandum dated February 21, 1995, you asked the Legal Division to reply to the taxpayer's letter dated December 1, 1994, to the Sales and Use Tax Department regarding the application of sales tax to the X------------------- saline and Heparin Flush syringes which it will sell in California. I am writing you because the taxpayer did not furnish sufficient information for me to render a definite opinion. The taxpayer attached to its letter a copy of (apparently) a flyer from its vendor which pictures the various syringes at issue and includes some general product information. It does not, however, describe how these products are used. In its letter, however, it terms them "prefill cartridges," and the flyer calls them "One system. One Source. One Solution." This indicates that they come pre-filled and are for one-time use only. OPINION As a rule, items used to diagnose a condition or to apply medicine or treatment to the patient are not considered to be medicines. Under Regulation 1591 (c) (2), syringes are considered appliances, devices, etc., excluded from the definition of "medicines" with the result that their sales are subject to tax. (Annot. 425.0462.) We have, however, determined that when the syringe is sold pre-filled with a medicine, is disposable and for one-time use only, then the pre-filled syringe is considered to be a container sold filled with exempt contents the sales of which are exempt from tax under Regulation 1589 (b) (1) (C) . The taxpayer's letter does not give any information on this issue but, as noted above, it indicates that such may be the case. If that is so, then the sales of these syringes are exempt from tax under the above authority. More information should be obtained on the nature of these syringes before we give a definite opinion. JLW:sr