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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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F


245.0000 Food Products—Regulation 1602

Annotation 245.0732

(a) In General

245.0732 Medicines—Medical Foods. Products known as "medical foods," as defined under section 5(b) of the federal Orphan Drug Act, are medicines pursuant to section 6369. The sale of "medical foods" would not qualify for the section 6359 exemption for food products because medicines are specifically excluded from the definition of a food product. Therefore, tax generally applies to retail sales of "medical foods," including over-the-counter sales. However, "medical foods" that are sold or furnished in an exempt manner as specified in Regulation 1591, subdivision (d)(1)-(6), are not subject to tax. 10/21/09.