Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603
(j) HOT PREPARED FOOD PRODUCTS
550.1950 Sales of Hot Meals by River Rafting Companies. A typical commercial white water rafting in California consists of taking groups of people down various rivers which have navigable rapids. None of the land or campsite along the river is owned by the rafting companies. The river trips are conducted by trained guides, often lasting from one to seven days. For multi-day trips, the passengers provide their own gear and eating utensils, and the companies provide, for a lump-sum charge, the guides, boating equipment, cooking gear, and food consumed by the passengers. During the multi-day expeditions, the guides prepare the meals consumed by the passengers. Typically, the lunches consist of cold sandwiches, whereas the breakfasts and dinners comprise both hot and cold foods. Under the above circumstances, the river rafting companies are retailers who sell hot prepared food to their passengers. 9/23/83.