Were 40-30-30 nutrition bars exempt from Florida sales tax as food rather than taxable candy?

Subject

40-30-30 Nutrition Bars

Plain-English summary

The 40-30-30 nutrition bars were exempt from Florida sales tax as food for human consumption. The seller marketed them as food-replacement bars, nutritious high-energy snacks, or exercise supplements, and the bars were fortified with 20 vitamins and minerals.

The Department sent the product labels to food specialists at the Florida Department of Agriculture and Consumer Services. Based on the ingredients, those specialists classified the product as a food supplement designed to meet specific physiological requirements.

Florida's food exemption excluded candy, but the Department treated this particular product as an exempt special dietary food or food supplement rather than taxable candy.

What this means for you

The ruling was product-specific. Classification depended on the bar's actual formulation, labels, marketing, and the agriculture agency's assessment—not simply on being sold in bar form or using the word “nutrition.”

Manufacturers and retailers should preserve current ingredient lists, labels, claims, and any agency classification when evaluating food-versus-candy treatment.

Common questions

Q: Were the bars taxable candy? No. The Department classified the reviewed product as exempt food for human consumption.

Q: What facts supported exemption? The food-replacement, snack, and exercise-supplement marketing; 20 added vitamins and minerals; and the agriculture specialists' food-supplement classification.

Q: Are all nutrition bars exempt in Florida? This TAA did not say that. It applied only to the specific product and labels submitted by the requester.

Q: Why did the agriculture department matter? Florida's rule treated certain special dietary foods as food, and DOR relied on the agriculture specialists' product review.

Citations and references

• Fla. Stat. § 212.06(1)(a) — sales tax collected by dealers on taxable retail transactions
• Fla. Stat. § 212.08(1)(a) — food and drink exemption and candy exclusion
• Fla. Admin. Code r. 12A-1.011(1)(b) — special dietary foods treated as exempt food
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 98A-026

Original ruling text

SUMMARY

Consistent with TAA Number 439, the department ruled that the Taxpayer's nutrition bars which contain twenty vitamins and minerals, and are marketed as a food replacement bar, a nutritious high energy snack, or as an exercise supplement, are exempt as a food or food supplement. The product labels were reviewed by food specialists from the Florida Department of Agriculture and Consumer Services, and were determined to be a food supplement designed to meet specific physiological requirements.

Apr 22, 1998

Re: Technical Assistance Advisement 98A-026 Sales and Use Tax: 40-30-30 Nutrition Bars Sections: 212.06 and 212.08(1), F.S. Rule : 12A-1.011(1)(b), F.A.C. Petitioner: XXX (herein Taxpayer) FEI: XXX

Dear :

This is a response to your petition dated January 27, 1998, for the Department's issuance of a Technical Assistance Advisement ("TAA") concerning the above-referenced party and matter. Your petition has been carefully examined and the Department finds it to be in compliance with the requisite criteria set forth in Chapter 12-11, Florida Administrative Code. This response to your request constitutes a TAA, and is issued to you under the authority of Section 213.22, Florida Statutes.

As provided in your letter, the Taxpayer is the direct seller of a variety of nutritional, personal care, and other consumer products, including vitamins, nutritional supplements, health and diet foods, and herbal products. The Taxpayer specifically requests technical guidance concerning the appropriate tax treatment for the sale of its 40-30-30 Nutrition Bars. A review

of the product labels, provided with your petition, reveal that the bars are marketed as a food replacement bar, a nutritious high energy snack, or as an exercise supplement. The nutrition bars are fortified with twenty vitamins and minerals.

LAW

As provided in Section 212.06(1)(a), F.S., sales tax, at the rate of 6 percent, shall be collectible from all dealers on the sale at retail, the use, the consumption, the distribution, and the storage for use or consumption in this state of tangible personal property or taxable services. Section 212.08(1)(a), F.S., provides an exemption for food and drinks sold for human consumption. The exemption specifically does not apply to the sale of candy.

Rule 12A-1.011(1)(b), F.A.C., provides in pertinent part that:

Special dietary foods such as Metracal, Bal-Cal and fortified milk products such as 900 Calorie Diet Plan are considered food by the Florida Food, Drug and Cosmetic Law, and the Florida Department of Agriculture and Consumer Services, and are exempt.

DEPARTMENT RESPONSE

The product labels for the 40-30-30 Nutrition Bars have been referred to the Florida Department of Agriculture and Consumer Services for review. Representatives from that agency have determined that based on the ingredients of the nutrition bar, the product is a food supplement designed to meet specific physiological requirements. As such, it is our determination that the product is exempt from sales tax as a food for human consumption.

This response constitutes a Technical Assistance Advisement under Section 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 Section 213.22, F.S. Our response is predicated upon 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 from that which is 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 Section 213.22, F.S. Your name, address, and any other details that 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 this response.

Sincerely,

Richard R. Parsons
Tax Law Specialist,
Technical Assistance and Dispute Resolution (850) 922-4838