Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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245.0000 FOOD PRODUCTS—Regulation 1602

Annotation 245.0590


245.0590 Ice Sold to Street Food Vendors. A taxpayer rents hot dog carts to independent street vendors and also sells them ice without taking any resale certificates. The street vendors use some of the ice to keep their food products cool or fresh and some of the ice is resold in or with soft drinks. In lieu of clear evidence otherwise, the Board will regard 50 percent of the sales of the ice to be nontaxable sales for resale with the soft drinks and 50 percent as taxable sales of ice used in the vendor's business. The exemption provided by section 6359.7 does not apply to these taxable sales since that exemption applies only with respect to ice used in packing and shipping food products for human consumption by a carrier and not the use of the ice by street vendors. 6/19/95.