Was processing and mounting human tissue on a microscopic slide taxable when performed for medical diagnosis rather than education or another purpose?
Apply this to your situation
This page answers the general question as of 1971. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
California stated that processing human tissue as a step in diagnosing human illness did not constitute a sale of tangible personal property.
The source distinguished that diagnostic work from producing a completed microscopic slide for educational or other purposes. It does not provide more factual detail, but it says the end use changes the analysis.
The memorandum also says a newly completed annotated letter ruling superseded an earlier version of Annotation 515.1280. It does not identify that separate document by number.
What this means for you
Medical laboratories and educators
Preparing a specimen as an integral part of diagnosis received different treatment from manufacturing a completed slide as an educational or other end product.
Accountants and tax professionals
Document the requested purpose, diagnostic integration, slide ownership, specimen processing, separate charges, educational use, and any delivered physical product.
Common questions
Q: Was diagnostic tissue processing taxable?
A: No, under the source's stated rule.
Q: Was an educational microscopic slide treated the same way?
A: No. The source expressly distinguished it.
Q: Does the source identify the superseding ruling?
A: No.
Source
- Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
- Annotation page: Annotation 515.1280
- Original supporting opinion: 515.1280 PDF
Original ruling text
State of California
Board of Equalization
Memorandum
To:
San Francisco – District Administrator
From:
Tax Counsel (WEB) – Headquarters
Subject:
Annotation 515.1280
515.1280
Date:
August 31, 1971
Your memorandum of August 11 directed to Headquarters Principal Auditor has been referred to this office for reply. For your information we have recently completed a new annotated letter ruling which supersedes annotated letter ruling 515.1280. The basis for this new ruling is that the processing of human tissue as a step or process in the course of diagnosing human illness does not constitute a sale of tangible personal property. A distinction has been drawn where the end product is a completed microscopic slide to be used for educational purposes or for other purposes. We have also reviewed annotated letter ruling 425.0200 discussed in your memorandum. This ruling should be distinguished on the basis of the activity does not constitute processing of human tissue.
What does the law say today, for your facts?
This ruling is from 1971. Ezel checks current California tax law against your situation and cites the authority it relies on.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace