Ezel / Tax Rulings / CA

Could fruit processors buy calcium hydroxide and calcium chloride for resale when about half the resulting calcium pectate left with the brine?

Short answer Yes. Their primary purpose was supplying calcium that formed fruit-firming calcium pectate; the discarded portion served no separate process purpose.
State
CA
Ruling
Annotation 440.0550
Tax type
Sales and Use Tax
Issued
1942-07-30
Issued by
California State Board of Equalization
Requested by
Board staff asking about calcium hydroxide, calcium chloride, and other chemicals used to process fruit
Topics
fruit processing brine ingredient resale exemption
Source
View Original PDF

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This page answers the general question as of 1942. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1942
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 is a California State Board of Equalization office memorandum dated July 30, 1942, published by CDTFA as support for a sales and use tax annotation. It relies on the stated purpose of providing calcium that combines with fruit pectic acid and distinguishes other chemicals discarded after fermentation-control or bleaching uses. Another taxpayer should not treat it as binding and should check current food-processing, calcium, brine, ingredient, manufacturing-aid, resale, and sales-and-use-tax rules. This summary is informational only and is not legal or tax advice.
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

A fruit processor used calcium hydroxide and calcium chloride to supply calcium that combined with pectic acid in the fruit and formed calcium pectate, which set or firmed the product.

The chemicals qualified for resale. Although about half of the calcium pectate remained in the fruit and the rest was discarded with brine, the discarded portion served no separate purpose; the sole or primary purpose was creating the incorporated firming compound.

Other unspecified chemicals used to arrest fermentation and bleach fruit were taxable because they were entirely discarded with the brine after performing those process functions.

Source

Original ruling text

STATE BOARD OF EQUALIZATION
OFFICE CORRESPONDENCE

440.0550
Sacramento
July 30, 1942

To:

Mr. Burnett Sheehan

From:

E. H. Stetson

Re:

L--- - M---, Inc.
XXXX --- ----- --California
Your memorandum of July 20:

Permit

B-XXXX

It appears from your memorandum that the calcium hydroxide and calcium chloride are used only for the purpose of providing calcium which unites with pectic acid in the fruit to form calcium pectate, which “sets” or “firms” the fruit. Although you state that one-half of the calcium pectate remains in the fruit, the remainder being discarded in the brine, it appears that the portion discarded serves no purpose at all, and that the sole or at least the primary purpose of purchasing calcium hydroxide and calcium chloride is to provide calcium which remains in the fruit in the form of calcium pectate. It appears therefore, that the calcium hydroxide and calcium chloride are purchased for the purpose of resale. The other chemicals appear not to be purchased for resale as you state they are used to provide chemicals to arrest fermentation and bleach the fruit, and are entirely discarded in the brine at the end of the process. It is suggested that you advise taxpayer of our conclusions.

EHS.j

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