Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603
(a) IN GENERAL—FACILITIES FOR CONSUMPTION
550.0062 Box Lunches. A taxpayer delivers cold sandwiches and salads in plastic boxes, bags or paper boxes along with a cookie. Alternatively, the same foods may be delivered on disposable platters. Disposable napkins, plates, and utensils are also furnished. No service other than unpacking the boxes and placing the food on a side table is provided. Tax does not apply because the taxpayer is neither serving the meals nor providing food at its own facilities. If the taxpayer also furnishes carbonated beverages, tax applies to the sale of the beverages.
The taxpayer also packages and delivers cold breakfast breads and pastries, fresh fruit or fruit salad, and hot coffee, tea and cocoa. The hot drinks are delivered in thermal containers which are later retrieved. Tax does not apply for the same reasons as described above.
When the taxpayer delivers cold finger sandwiches and cold hors d'oeuvres in the same manner as above, tax does not apply for the same reason.
The taxpayer also sells hot foods such as lasagna or chicken accompanied by vegetables and potatoes in thermal containers. The hot items are put on a side table and kept warm by using chafing dishes. Bread, cold salads and desserts are also provided. Sales of hot foods and combinations of hot and cold foods are taxable. Therefore, the entire charge is subject to tax. 12/6/93.