Were plain corn or flour tortillas sold separately for takeout exempt as bakery products even when sold hot?
Apply this to your situation
This page answers the general question as of 1972. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
Board staff classified plain corn and flour tortillas as bakery products because they were baked, used essentially the same ingredients as corn or white bread, and served essentially the same purpose as bread.
Accordingly, a tortilla factory's separate-price takeout sale of the plain tortillas was exempt whether the tortillas were hot or cold.
The source is limited to plain tortillas sold separately for takeout. It does not address tortillas sold as part of a prepared meal or with fillings. It also contains a printed bill-number conflict: the subject line says Assembly Bill 2109, while the body says Assembly Bill 2019.
Common questions
Did selling the tortillas hot remove the bakery-product treatment?
No. The memorandum exempted the described separate-price takeout sales whether hot or cold.
Did it cover filled tacos, burritos, or meal combinations?
No. The complete source addresses plain corn or flour tortillas sold by a tortilla factory.
Citations and references
- California Revenue and Taxation Code section 6359(e) (as cited)
- Assembly Bill 2109 (memorandum subject) / Assembly Bill 2019 (memorandum body), as printed
Source
- Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
- Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/550-0000-all.html
- Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/550-2020.pdf
Original ruling text
State of California
Memorandum
To:
Los Angeles District - District
Administrator (JWT)
From:
T. P. Putnam
Subject:
Hot Tortillas – Sales of under provisions of
Assembly Bill 2109
Board of Equalization
550.2020
January 19, 1972
In reply to your memo of January 14, 1972, corn or flour tortillas, sold plain, qualify as
“bakery products” within the meaning of subdivision (e) of section 6359 of the Revenue and
Taxation Code, as added by Assembly Bill 2019. They are baked, have essentially the same
ingredients as corn bread or white bread, and serve essentially the same purpose as bread.
Accordingly, whether sold hot or cold, the sale of them for a separate price by a tortilla
factory on a “take-out” basis, is not taxable.
TPP:smb
cc:
J. D. Dotson
D. J. Hennessy
What does the law say today, for your facts?
This ruling is from 1972. 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