- Dietary supplements are taxed inconsistently by state: some treat them as grocery items, some as fully taxable tangible personal property, and some distinguish between prescription and nonprescription products.
- In Alabama, dietary supplements are exempt only if prescribed by a licensed medical practitioner.
- Tax treatment may depend on product labeling and claims; items with “nutrition facts” labels may be treated differently from products with “supplement facts” or “drug facts” labels.
- Supplements are not always pills; powders and bars can also be taxed as supplements if they make vitamin/health-related claims.
- Connecticut exempts dietary supplements; Florida also has special treatment for dietary substitutes, including herbal supplements.
Source: taxjar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
