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 550.1655


550.1655 Carbonated Beverages Included in a Meal Sold "To Go" for a Single Charge. A restaurant sells a "bundled meal," which includes a cold sandwich and a carbonated beverage, for a single price. If the sale is "to go" and is not otherwise taxable under Revenue and Taxation Code section 6359 (e.g., sold for consumption at facilities provided by the retailer or at facilities provided for that purpose, or taxable under the 80-80 rule), the sale of the cold sandwich to go is exempt from tax, but the sale of the carbonated beverage is taxable. Thus, the portion of the price for the bundled meal sold "to go" allocable to the carbonated beverage is subject to tax. 11/13/2001.