Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603
(h) PREPARED FOOD IN CONTAINERS
550.1540 Coffee—Paper Cups. The sale of fresh liquid coffee, not accompanied by a sale of other food products in such a way as to constitute the service of meals, to employers who distribute the coffee free to their employees during established coffee breaks is the sale of an exempt food product. However, the sale of paper cups to the employees is taxable where it is not a direct sale of the cups containing the coffee to the employees or to the employer. 7/13/64.