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 550.0095


550.0095 General Purpose Room. An operator of an espresso cart has a contract with a student organization of a college to operate an expresso cart in its student union. The cart will be located in the student union's general purpose room. The students use the room for studying and gathering and they have to bring their own food and drink into the room. The sales by the cart operator are not exempt as student meals pursuant to Regulation 1603(j)(2)(A).

The cart operator will be selling food in a form suitable for consumption in a room where there is a reasonable relationship between the presence of the cart and the use of the tables and chairs in the room for consumption of the cart operator's products. One of the current uses of the room is for consumption of food that the students bring in themselves. Therefore, the use of the room to consume the cart operator's product is not fortuitous but an extension of a current use of the room. The room, tables, and chairs are supplied by the entity with which the cart operator is contracting and therefore its sales are subject to tax pursuant to Regulation 1603(f). 1/17/95.