Ezel / Tax Rulings / CA

Could a winery buy potassium metabisulphite for resale when using it to sterilize and preserve wine?

Short answer Yes. It or its components formed bound sulfur dioxide in the wine, where that incorporated material supplied the desired sterilizing and preserving effect.
State
CA
Ruling
Annotation 440.2440
Tax type
Sales and Use Tax
Issued
1962-02-19
Issued by
California State Board of Equalization
Requested by
A wine company asking about potassium metabisulphite used for sterilization and preservation
Topics
wine sulfur dioxide sterilization preservation ingredient component parts resale exemption
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1962. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1962
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 tax-counsel letter dated February 19, 1962, published by CDTFA as support for a sales and use tax annotation. It relies on a submitted opinion that potassium metabisulphite or its components formed bound sulfur dioxide in wine and thereby preserved it. Another taxpayer should not treat it as binding and should check current wine, food-additive, sterilization, preservation, component-part, 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 wine company used potassium metabisulphite to sterilize and preserve wine. Based on the submitted technical opinion, the chemical or its components formed combined or bound sulfur dioxide in the wine.

Because the incorporated material remained in the wine and produced the desired sterilizing and preserving effect, the company could purchase potassium metabisulphite without tax for resale.

Source

Original ruling text

440.2440

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

February 19, 1962

I--- V--- Co.
---, CA
Attention:

-- - XXXXX
Mr. H. L. B---

Gentlemen:
This is in reply to your letter of February 7, 1962, concerning the taxability of Potassium Metabisulphite. On the basis of opinion submitted, it is our opinion that Potassium Metabisulphite or its component became an ingredient or component part of the wine in that its use for sterilizing and preserving wine results among other things in the formation of combined or bound sulphur dioxide in the wine which exerts the desired effect of sterilizing and preserving the wine. On the basis of the foregoing understanding, the Potassium Metabisulphite may be purchased ex tax. Very truly yours,

E. H. Stetson
Tax Counsel

By____
Charles C. Kobayashi

CCK:dm
cc:

--- --- – Tax Administrator

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