Frozen Food Maker Asks California Court to Grant Sales Tax Break

Nitrogen used to flash freeze and package vegetables is a “preservative product” that is exempt from California sales tax, a frozen food manufacturer told a state appeals court.

A trial court in January rejected Haliburton International Foods Inc.'s bid for a refund of $27,000 in sales tax it paid under protest because the company couldn’t prove how much of the liquid nitrogen was ultimately packaged with the vegetables.

But the regulation providing a tax break for products that serve a “beneficial purpose in preserving food” for shipment doesn’t contemplate a partial exemption for portions of the sale, the company told ...