Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603

Annotation 550.0050


550.0050 Amusement Parks. An amusement park is made up of an arcade area, miniature golf courses, water slides, and a baseball batting range. Although the entire park is fenced in, there is no admission charge. Once in the park, one can take advantage of the various attractions for a fee. The amusement park operator has two areas at the park with tables and chairs where patrons may eat food near food stands. One is the main arcade area that has tables and chairs located inside and right outside of the arcade area. In addition, there is a "Captain Kids" area that has inside tables and chairs and also tables and chairs right outside the area. No one comes to the park for the express purpose of buying food to take out.

Generally, it must be shown with some certainty that the benches, tables, and chairs are provided for the purpose of consumption of food. From the above description, it appears that the tables and chairs are provided for the purpose of eating the food bought at the park. They are in close proximity to the food sales operations. There is a rational connection between the food-selling operations and the tables and chairs which would constitute "facilities" within the meaning of Regulation 1603(f). Accordingly, sales of food within the park are taxable even if the patrons buy food at the stands and then take it to other areas of the park to eat. 11/17/94. (Am. 2003–2).