Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2017

Sales and Use Tax Annotations

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165.0000 CHARITABLE ORGANIZATIONS—Regulation 1570

Annotation 165.0100

165.0100 Residences for Senior Citizens. When determining whether meals served by residences for senior citizens qualify for the charitable organization exemption, reference should be made to the financial status of the residents. Persons whose income is near the poverty level are in distressed financial condition. Providing meals at significantly reduced prices so as to be of real assistance to the purchasers is a form of relief to such persons.

1. Incomes of $225–$275 are equivocal. They may not be poverty level incomes but the persons can be in distressed financial condition depending on the other circumstances.

2. Incomes in excess of $275 per month will be considered to be above the poverty level and the person will be presumed not to be in distressed financial condition.

3. Incomes below $225 per month will be presumed to be below the poverty level. At least 51 percent of the persons served must be in distressed financial condition and a substantial portion of that percentage must be in poverty. If 66 percent of those served are in that class, the presumption will be that the meals provided at significantly reduced prices qualify for the exemption if the welfare exemption has been granted and the meals are prepared by the organization. Between 51 percent and 66 percent other factors will be considered. 6/9/69; 11/20/89.