Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
165.0000 CHARITABLE ORGANIZATIONS—Regulation 1570
165.0090 Meals for Employees. A charitable organization, which operated a sheltered workshop for disabled persons the sales of the products of which were exempt under section 6375, also operated a cafeteria for its disabled employees. The incomes of the employees were below the poverty level, and the purpose of operating the cafeteria was to offer meals at a price they could afford to insure that they ate one good meal a day. The organization subsidized the cafeteria in the amount of 50 percent of the cost of the meals. Employees could purchase a full luncheon for 50¢, and their individual purchases ranged from 35¢ to 75¢. Sales by the cafeteria were exempt from the sales and use tax. 7/29/70.