Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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T

550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603

Annotation 550.1300

(g) EMPLOYEES', TEACHERS' AND STUDENTS' MEALS

550.1300 Minimum Wage Law. When employees who are subject to minimum wage orders receive meals in lieu of cash payments, the difference between amounts actually paid to employees subject to minimum wage orders and the amount of the minimum wage is regarded as consideration attributable to the furnishing of meals, and this difference represents taxable gross receipts from the sale of meals. Sales of such meals are, under section 6363, effective September 20, 1963, taxable. In such circumstances the amount of tax due may be measured by taking the appropriate percentage of the difference. No amount need be charged to the employee as tax reimbursement because the amount is considered to be included in the value of the services rendered. 3/4/64.