Were charges for processing customer-furnished meat or game taxable, and was the paper used to wrap the finished food exempt?

Plain-English summary

Meat processors that carved or dressed meat supplied by customers for those customers' consumption made processing sales under section 6006(b). The sales nevertheless were exempt under section 6359 because the processed meat was a food product.

Paper used to wrap the meat for delivery was treated as a nonreturnable container sold with the food. Section 6364 therefore exempted both the processor's purchase and its sale of that paper.

The memorandum applied the same treatment to cleaning and picking ducks and other game birds brought in by customers: the processing sale was exempt as food, and the accompanying wrapping paper was an exempt container. It also said an inconsistent earlier annotation would be deleted.

Citations and references

• California Revenue and Taxation Code sections 6006(b), 6359, and 6364 (as cited)
• Sales and Use Tax Annotations 435.0540 and 195.1300 (as discussed in the source)

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/435-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/435-1050.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Mr. Robert Nunes

From:

T. P. Putnam

Subject:

Purchases of Wrapping Paper by Meat Processors

435.1050

Date:

May 6, 1976

After reviewing your proposed letter to Mr. William Andretto of the California Association of Meat Processors, I have concluded that meat processors who carve or dress meat for consumption by customers who furnish the meat are making "sales" within the meaning of Section 6006(b) of the Revenue and Taxation Code, i.e., they are processing tangible personal property for a consideration for consumers who furnish the materials used. The sale is exempt under Section 6359 as the sale of a food product. The paper used by the processor to wrap the meat should be regarded as sold along with the meat as a nonreturnable container. Accordingly, the purchase and sale of the paper is exempt under Section 6364. This conclusion appears to be consistent with Business Taxes Law Guide Anno. 435.0540, but not with Anno. 195.1300. The cleaning and picking of ducks and other game birds brought in by customers should be regarded as a processing -sale" and the paper in which they are wrapped as an exempt container, the same as in the case of the above described meat processing. This memo will be annotated and Anno. 195.1300 will be deleted.

TPP:lb
Cc:

Mr. John H. Murray
Mr. Glenn L. Rigby