Were Calli Beverage, Fortune Delight, NuPlus Bulk, Electrosport, and Evergreen subject to Florida sales tax?
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This page answers the general question as of 1993. Ezel answers yours, under current Florida tax law, with citations.
Subject
Taxability of Herbal Food Concentrate Products
Plain-English summary
All five reviewed products were exempt from Florida sales and use tax as dietary food supplements. The products were Calli Beverage, Fortune Delight, NuPlus Bulk, Electrosport, and Evergreen.
The Department relied on the classification made by the Food Laboratory Division of the Florida Department of Agriculture and Consumer Services. Although the request separately described some products as herbal teas, complex carbohydrate powder, drink mix, or mineral beverage, the ruling's final basis was that all five were dietary food supplements under Rule 12A-1.011(1)(b).
What this means for you
The result was product-specific and depended on the ingredients, intended use, packaging, directions, and official food classification presented in 1993.
Common questions
Q: Which products were exempt? Calli Beverage, Fortune Delight, NuPlus Bulk, Electrosport, and Evergreen.
Q: Why were they exempt? The state Food Laboratory classified all five as dietary food supplements.
Q: Did the ruling classify each product solely as tea? No. The final holding treated all five as dietary food supplements.
Citations and references
- Fla. Admin. Code r. 12A-1.011(1)(b) — dietary food supplements
- Fla. Stat. § 213.22 — Technical Assistance Advisements
Source
- Landing page: Florida Tax Law Library
- Advisement: TAA 93A-071
Original ruling text
Oct 12, 1993
Re: TAA 93A-071
Sales Tax: Taxability of Herbal Food Concentrate Products
Taxpayer: XXX
Rule 12A-1.011(1), F.A.C.
Dear :
This is in response to your letter dated February 28, 1993,
received in our office by facsimile transmission on September 3,
1993. You have requested a Technical Assistance Advisement
regarding the taxability of several herbal food concentrate
products sold by your client XXX (hereafter "Client"). This
response to your request constitutes a Technical Assistance
Advisement under Chapter 12-11, F.A.C., and is issued to you
under the authority of s. 213.22, F.S.
The products in question, as listed in your letter, are:
"1. Calli Beverage
"Product ingredients are a mixture of herbs and plants.
The product is sold in boxes of 42 2.5 gram bags. The
product's package and company brochures describe Calli as a
herb food beverage. [Client] recommends that Calli be
mixed with water and served either hot or cold.
"Based on Calli's ingredients, it appears that the product
is similar to a herbal tea. If a tea, Calli appears to
qualify for Florida's exemption from the sales tax for tea.
Florida Rule 12A-1.011 (1)(a)[,F.A.C.].
"2. Fortune Delight
"Product ingredients include camellia extract, lemon
extract, chrysanthemum flower extract, jasmine extract and
lalang grass root extract. Fortune Delight is sold in
three sizes: boxes of 14 20 gram packages, boxes of 84 3
gram packages and boxes of 42 3 gram packages. The
product's box recommends that [F]ortune Delight be mixed
with water.
"Based on Fortune Delight's ingredients, it appears that
the product should meet the definition of a herbal tea.
Therefore, Fortune Delight should qualify for Florida's
exemption from the sales tax for tea pursuant to Florida
Rule 12A-1.011 (1)(a)[,F.A.C.].
"3. NuPlus Bulk
"NuPlus is a complex carbohydrate powder made from a
variety of herbs and fruits. Ingredients include coix
fruit, Chinese yam, fox nut, lotus seed, lotus root, apple,
strawberry, blueberry, water lily bulb, and imperate root.
Products instructions recommend that the powder be mixed in
six to eight ounces of water.
"NuPlus is sold in 630 gram containers and in boxes of 42
fifteen gram packages. Although [Client] recommends the
powder be mixed with water, some purchasers will consume
NuPlus as sold.
"The ingredient mix in NuPlus is designed to fill in
nutritional gaps that form in an otherwise balanced diet.
Accordingly, it appears that NuPlus is a food supplement
which qualifies for exemption from Florida Tax pursuant to
Rule 12A-1.0111[, F.A.C.].
"4. Electrosport
"Electrosport is a drink mix designed to help replenish
fluids, electrolytes and minerals lost during strenuous
exercise. Product ingredients include water, chloride,
calcium, potassium, sodium, magnesium[,] zinc, iron,
ma[n]ganese, chromium, selenium and lemon oil.
"Electrosport is sold in boxes of 30 fifteen milliliter
bottles. Package instructions recommend that the product
be mixed with two quarts of liquid.
"Based on Electrosport's ingredients and recommended use,
it appears that the product is designed as a food
supplement. Pursuant to Florida Rule 12A-1.0111
[,F.A.C.] food supplements such as minerals are exempt from
tax.
"5. Evergreen
"Evergreen is a beverage mix designed to help fortify the
blood with added zinc and minerals. Product ingredients
include water, licorice, chlorophyll, iron, zinc and
peppermint oil.
"Evergreen is sold in boxes of 30 fifteen milliliter
bottles. Package instructions recommend that Evergreen be
mixed with eight ounces of liquid.
"Based on the ingredients and recommended usage, it appears
that Evergreen is primarily a food supplement designed to
replace lost minerals. As a food supplement, Evergreen
should qualify for exemption from Florida sales/use tax
pursuant to Rule 12A-1.011(1)[, F.A.C.]."
It has been determined by the proper official with the Food
Laboratory Division of the Department of Agriculture and
Consumer Services that the five products listed in your letter;
Calli Beverage, Fortune Delight, NuPlus Bulk, Electrosport, and
Evergreen, are considered to be dietary food supplements and all
are exempt from the Florida sales and use tax, pursuant to Rule
12A-1.011(1)(b), F.A.C.
This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for
this advice as specified in s. 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.
You are further advised that this response and your request
are public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect the confidentiality
of such information, we request you notify the undersigned in
writing within 15 days of any deletions you wish made to the
request or the response.
Sincerely,
Sharon Blair
Technical Assistant
SB/pb
Con. #10762
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