Ezel / Tax Rulings / CA

Were alfalfa seeds for sprouts and flax or cress seeds exempt from California sales tax?

Short answer Yes. Alfalfa sprouting seed qualified under the food-producing-seed rule, and flax and cress were exempt unusual foods unless labeled as food supplements.
State
CA
Ruling
Annotation 510.0010
Tax type
Sales and Use Tax
Issued
1990-03-14
Issued by
California State Board of Equalization
Requested by
A business asking about alfalfa, flax, and cress seeds
Topics
food food supplements
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1990. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1990
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 1990 opinion distinguished alfalfa seed sold for sprouting from flax and cress seeds sold for consumption. The flax and cress conclusion depended on the products being unusual foods rather than being labeled as food supplements or equivalent products. Current seed, sprout, unusual-food, labeling, supplement, and California food-exemption rules control today.
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 exempted alfalfa seeds sold for making sprouts under the rule for seeds whose products ordinarily constitute food for human consumption.

Flax and cress seeds qualified as unusual foods and were also exempt, unless labeled as a food supplement or an equivalent product.

Common questions

Were alfalfa seeds used for sprouts exempt?

Yes.

Were flax and cress seeds exempt?

Yes, as unusual foods.

What labeling could change the result?

A food-supplement label or its equivalent.

Citations and references

  • California Code of Regulations, title 18, Regulation 1588
  • California Code of Regulations, title 18, Regulation 1602(a)(5)

Source

Original ruling text

510.0010

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 324-5589

March 14, 1990

Mr. D--- O--Box XXX
XXX --- Street
---, CA XXXXX
Dear Mr. O---:
Your letter of February 1, 1990 to Mr. E. L. Sorensen of our office has been referred to me for reply. You have requested our opinion regarding the correct application of tax to alfalfa seeds for sprouting and flax and cress seeds for consumption. Alfalfa Seeds We have previously determined that alfalfa seeds used to make sprouts are exempt from tax. Sales and Use Tax Regulation 1588 (enclosed) provides, in relevant part, that “[t]ax does not apply to sales of seeds … the products of which ordinarily constitute food for human consumption ….” Flax and Cress Seeds We are of the opinion that flax and cress seeds qualify as unusual foods which are not subject to tax unless they are labeled as a food supplement or the equivalent (Sales and Use Tax Reg. 1602(a)(5)). Tax should therefore not apply to the sale of these products. If you have further questions concerning this matter, please write this office again. Very truly yours,

Mary C. Armstrong
Senior Tax Counsel

MCA:wak
2004C

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