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 550.0850


550.0850 Rentals. Tax applies to a caterer's entire charge, including the charge for the use of dishes, silverware, glasses, chairs, tables, champagne fountains, and other property used by the caterer in connection with the serving of meals. The caterer cannot issue a resale certificate for the purchase or leasing of such items because the caterer does not sell nor rent such items to its clients. Rather, the caterer uses such items in connection with its sale of the meals (Sales and Use Tax Regulation 1603(h)).

On the other hand, a caterer may issue a resale certificate to a rental company to lease tangible personal property which the caterer in turn subleases to its clients when the clients have specifically ordered such property and the property is not customarily provided in connection with the preparation and furnishing of food. Such property could be decorative props, such as artificial floral displays, lighting for guest speakers, sound systems, or video systems. 6/14/89.