Laws, Regulations and Annotations
Search
Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
C
195.0000 Containers and Labels—Regulation 1589
Annotation 195.0085
(a) In General—Nonreturnable Containers
195.0085 Blood Collection and Blood Pack Units. Section 6364.5 exempts from tax transactions involving the sales and use of certain containers associated with blood collection. The legislative history of Assembly Bill 993 (Stats. 1997, Ch. 773), hereafter AB 993, the bill that created section 6364.5, demonstrates that the intent of section 6364.5 was to provide a narrow exemption. The fiscal effect of AB 993 was calculated using total sales and average costs of blood bags, platelet aspheresis kits, plasma kits, and transfer bags. Each of these items includes a bag in which the blood product is stored. No other items besides these were included in the calculation of fiscal effect.
The reference within the statute to containers that "collect or store" blood products refers to units such as blood collection units or blood pack units that include not only a bag, but also integrated components which collect the blood product stored in the bag. The language of the statute and the legislative history demonstrate that the exemption was not intended to apply to transactions involving the sale of syringes and pipettes which may collect blood or any item on which blood may be tested or temporarily held for other purposes. Based on the language of the statute and the legislative history, the exemption provided by section 6364.5 applies to products analogous in function to the units described in section 6364.5, subdivision (b) and those listed in the fiscal impact statement in the legislative history. 8/11/11.