Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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T

550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603

Annotation 550.1016

(f) SOCIAL CLUBS, FRATERNAL AND RELIGIOUS ORGANIZATIONS

550.1016 Meal Sales at Church Retreat. A religious organization operates a retreat for its members and in conjunction with the retreat provides meals and lodging. The meals are served in a dining hall operated by the organization which is open only to church members attending the retreat. The funds derived from the sale of the meals are used to offset the cost of operating the dining hall. If excess funds exist, they are used for other expenses related to the maintenance of the retreat.

The exemption provided under section 6363.5 is limited to meals served at "fund raising" functions. The church operates the dining hall to furnish meals to its members assembled there as retreatants attending services and receiving religious training and not as a "fund raising" function. Therefore, the gross receipts from the sales of these meals are not exempt from sales tax. 11/17/83.