Since they are used for medicinal purposes, the Board of Equalization thinks that raw herbs are taxable but admits this could be questionable. Vitamins and dietary supplements are also taxable. Also, products making any medicinal claims either on or inside the packaging require sales tax as to items which fall under the 1995 Dietary Supplement Act. However, medicines that are prescribed by physicians or sold by pharmacists are exempt from taxation. In the future, acupuncturists will have to sponsor legislation to be exempt from having to hold a seller's permit.
Chiropractors are exempt since it is considered part of their scope of practice.
A valid seller's permit is required of anyone who re-sells products. The permit allows you to purchase products without paying tax to the wholesale supplier. When you re-sell the product to your patient, you must then charge tax. State tax owed on these products is figured from your gross sales. If your supplier is ever audited by the Board of Equalization and his sales are traced to you, you could be liable for unreported sales tax on all products purchased from him and other wholesale suppliers.