Laws, Regulations and Annotations
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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
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440.0000 Property Used in Manufacturing—Regulation 1525
Annotation 440.2027
(b) Property Becoming Component Part of Finished Product
(2) Food, Beverages
440.2027 Liquors. The purchase of liquors to be incorporated into chocolate products as flavoring agents is not subject to sales tax, because the liquor will be resold as an ingredient of the finished product. However, retail liquor stores are prohibited from making sales for resale pursuant to the Business and Professions Code. Purchases of this nature can be made from a licensed Industrial Alcohol Dealer. 2/2/90.