Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010

Sales And Use Tax Law


Article 1. General Exemptions

Section 6373

6373. Food stamp coupons. (a) There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of tangible personal property the gross receipts of which are received in the form of food stamp coupons acquired by the purchaser pursuant to the Food Stamp Act of 1977 (Public Law 95-113), including subsequent amendments thereto.

(b) When the gross receipts from a sale of tangible personal property are received partly in the form of cash and partly in the form of food stamp coupons, the amount of the food stamp coupons shall be attributed first to gross receipts which would have been subject to the taxes imposed by this part if payment were not received in the form of food stamps.

(c) A retailer shall not add to the sale price of tangible personal property any amount designated as sales tax, use tax, or sales tax reimbursement when the sale is exempt pursuant to this section.

(d) In lieu of separately accounting for gross receipts which are exempt pursuant to this section and taking a deduction on sales tax returns for the exact amount of those gross receipts, the board may provide, for the efficient administration of this part, an alternative method that retailers may use to compute the allowable deduction for the total amount of food stamp coupons redeemed during the period for which the return is filed, provided that method results in a deduction the amount of which is at least equal to 2 percent of the total amount of food stamp coupons redeemed.

(e) This section is repealed on the first day of the first calendar month immediately following the effective date of any federal act which repeals those provisions which prohibit any state from participating in the food stamp program if sales taxes are imposed within that state on purchases made with food stamp coupons.

History.—Added by Stats. 1987, Ch. 1103, in effect September 25, 1987, operative October 1, 1987. Stats. 1992, Ch. 902, in effect September 25, 1992, operative January 1, 1993, substituted "the board may . . . deduction for" for "a retailer may take a deduction on each sales tax return equal to two percent of" and added ", provided that . . . coupons redeemed" in subdivision (d).