Introduction
This article will provide an overview of whether cat food is subject to sales tax in California. We’ll start by briefly explaining how sales tax works in California, including which types of products are generally taxable. Then we’ll focus specifically on the taxability of pet food and cat food. Key questions addressed include:
- Is pet food taxable in California?
- What about cat food specifically – is it subject to sales tax?
- Are there any exemptions or exceptions that apply to cat food?
- Does the sales taxability depend on where or how the cat food is purchased?
By the end of this article, readers should have a clear understanding of the sales tax rules in California when it comes to purchasing cat food.
California Sales Tax Overview
In California, sales tax is collected on the retail sale of tangible personal property (TPP), unless the sale is specifically exempt from taxation by law. TPP includes things like food, clothing, toys, furniture, appliances and many other goods. The sales tax rate in California ranges from 7.25% to 10.5%, depending on location. The state sales tax rate is 7.25%, while individual cities and counties may impose additional district taxes. Sales tax is collected by the seller at the time of purchase.
Some common examples of taxable sales in California include food sold for consumption on the premises, candy, soft drinks, clothing, furniture, electronics, gasoline, and dietary supplements. There are some exemptions to the sales tax in California, such as prescription medicines, certain medical devices, groceries, manufacturing equipment, agricultural products and more. Services like legal, accounting, barber/beauty shops and pet grooming are generally not subject to sales tax in California.
Sales Tax on Pet Food
In California, pet food is generally considered taxable under sales tax law. California imposes a sales tax on the retail sale of tangible personal property, unless a specific exemption applies. Pet food does not qualify for any of the exemptions under California Revenue and Tax Code Section 6359.
According to the California Department of Tax and Fee Administration: “The sale and use of pet food for domesticated animals, such as cats and dogs, is subject to tax. This includes sales of pet food to veterinarians for resale.” (Source)
So in general, purchases of pet food made in grocery stores, pet stores, veterinarian offices, and other retailers are subject to California sales tax. The tax rate depends on the location of the sale. There is no blanket exemption for pet food under California law.
Cat Food Specifically
When it comes to cat food purchases in California, the sales tax rules depend on who the food is purchased for. Cat food that is purchased for household pets like cats and dogs is generally considered taxable in California (1). This is because pet food is classified as a grocery item rather than an agricultural product meant for food animals.
According to California Sales and Use Tax Regulation 1587, pet food is subject to sales tax regardless of the type of animal it is meant for (2). The regulation specifically states that pet food for cats, dogs, birds, fish, reptiles, and other household pets is taxable.
So when purchasing any type of cat food in California, whether it is dry kibble, canned wet food, freeze-dried, raw, prescription, or hypoallergenic, sales tax will be applied at the point of sale. The tax rate varies based on which city and county the purchase is made in.
There are some exemptions in situations where the cat food is purchased by certain tax-exempt organizations like animal shelters. But in general, individuals purchasing cat food as pet owners will be charged sales tax on the purchase (3).
Keeping detailed receipts is important for California businesses selling pet food and cat owners buying it, in order to properly track taxable sales and purchases.
Sources:
(1) https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1587.html
(2) https://www.cdtfa.ca.gov/lawguides/vol1/sutr/sales-and-use-tax-regulations-art8-all.html
(3) https://woodllp.com/Publications/Articles/pdf/Sales_Tax_on_Food_Depends_on_Who_Eats_It_New_California_Cuisine.pdf
Types of Cat Food
There are several main types of cat food, each with their own tax rules in California:
Dry cat food – This refers to kibble or crunchy pellets. Dry cat food is generally taxable in California as it is considered a pet food product rather than for human consumption. However, some medicinal dry prescription cat food may be exempt if prescribed by a veterinarian.
Canned/wet cat food – Canned or foil pouched wet cat food is also taxable in California. There is no sales tax exemption for canned or wet pet foods.
Prescription cat food – Special veterinary prescription cat food may be tax exempt in California if the food is prescribed by a veterinarian for a legitimate medical reason. To qualify for the exemption, the customer must provide the seller with a proper prescription or certificate from a licensed veterinarian stating the food is prescribed for that specific pet.[1]
Raw cat food – Prepackaged raw cat food, frozen or freeze-dried, is generally taxable since it is considered a pet food product rather than for human consumption.
Homemade/self-made cat food – Ingredients purchased to make your own homemade cat food at home would not be taxable since they are considered general grocery items for human consumption. However, prepackaged homemade style cat food sold in stores is still taxable.
Where Cat Food is Purchased
The application of sales tax on cat food in California depends on where it is purchased:
Grocery stores: Cat food purchased at grocery stores is generally subject to sales tax in California. Grocery stores are considered retailers of tangible personal property, so sales of any items including pet food are taxable unless a specific exemption applies (Regulation 1587).
Pet stores: Purchases of cat food made at pet stores in California are taxable. Pet stores are retail establishments selling tangible goods, so cat food is subject to sales tax (Sales Tax on Food Depends on Who Eats It).
Online: Online purchases of cat food from retailers are generally taxable if the retailer has nexus in California. This includes large online pet food sellers like Chewy and Petco (Sales and Use Tax Regulations).
Direct from manufacturer: Cat food purchased directly from a manufacturer may qualify for an exemption as a sale for resale. Retailers purchasing inventory from manufacturers do not pay sales tax.
Other Pet Purchases
In California, sales tax generally applies to most tangible goods, while some services are exempt. This includes various pet-related purchases:
- Pet food, treats, and supplements are generally taxable in California (as covered previously).
- Pet supplies like litter, beds, leashes, toys, grooming tools, and medications are also taxable retail sales.
- Veterinary services and pet medical bills are not subject to sales tax in California as they are considered professional services.
- Boarding and pet daycare services are also not taxed.
- Adoption fees at animal shelters are exempt from sales tax.
Retailers are required to collect and remit sales tax on tangible goods sold. Pet owners should save their receipts for major purchases in case they need to verify tax was collected. Overall, most pet supplies are taxable at the point of sale in California.
Sources:
https://www.cdtfa.ca.gov/formspubs/pub36.pdf
https://www.cdtfa.ca.gov/lawguides/vol2/suta/110-0000-all.html
Exceptions and Exemptions
There are some exceptions and exemptions to sales tax on cat food in California. According to the CDTFA, animal feed sold for animals that are ordinarily used for human consumption, such as cows, chickens, pigs, etc., is exempt from sales tax [1]. However, pet food, including cat food, does not qualify for this exemption.
There are no broad exemptions specifically for cat owners like seniors or non-profits. However, some non-profit organizations may qualify for an exemption if they meet certain criteria. For example, schools, churches, and other qualifying non-profit organizations are exempt when making purchases related to their organization’s purpose [2]. This means a non-profit animal shelter could potentially purchase cat food tax-free. But individual cat owners do not qualify for exemptions.
The sales tax on cat food applies equally to all consumers in California, regardless of age or nonprofit status, unless they meet the criteria for a specific exemption related to their organization’s nonprofit purpose.
Record Keeping
California requires proper record keeping for sales tax purposes when selling cat food. Retailers must keep detailed records of all sales, including invoices and receipts, to accurately report sales tax. Here are some tips for collecting and remitting sales tax on cat food sales in California:
Carefully track all taxable and nontaxable sales of cat food. Taxable sales include canned, dry, frozen, and refrigerated cat foods. Nontaxable sales may include prescription cat foods if prescribed by a veterinarian. Keep detailed sales records, sales invoices, bills of lading, and other pertinent documents.
Collect sales tax at the time of purchase on all taxable sales. The current state sales tax rate in California is 7.25%. Some cities and counties also collect additional district taxes. Use online resources to find the appropriate combined tax rate based on location of sale.
Separate taxable from nontaxable sales on detailed sales reports. This will help accurately calculate sales tax owed. Retain these reports with your tax records.
Remit all collected sales tax to the CDTFA (California Department of Tax and Fee Administration) on your sales tax return. Returns must be filed monthly, quarterly, or annually depending on sales volume. Payments can be submitted online or mailed with paper returns.
Keep detailed sales tax records for a minimum of 4 years in case of audit by the CDTFA. These should include sales invoices, tax returns, resale or exemption certificates, and other relevant sales documents.
Using proper record keeping practices when selling cat food in California can help retailers accurately charge, collect, report, and remit sales tax while staying compliant with state requirements.
Conclusion
In summary, the sales tax treatment of cat food in California depends on several factors.
Cat food sold in grocery stores and retail establishments is generally subject to sales tax, as it is considered a tangible good for consumption. This applies to dry food, wet food, treats, and other cat food products.
Veterinarians may sell prescription cat food tax-free if it is considered a medicine rather than a food product. However, over-the-counter cat food sold at a vet’s office would still be taxable.
There are some exemptions, like cat food purchased with SNAP benefits. But in general, retail sales of cat food are taxable in the same way human food is taxable.
So to definitively answer the question – yes, cat food is broadly considered a taxable good in California when purchased at grocery stores, pet stores, and other retailers. Consumers should expect to pay sales tax on these purchases.