Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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M

360.0000 MISCELLANEOUS SERVICE ENTERPRISES—Regulation 1506

Annotation 360.1000

360.1000 Summer Camps. A summer camp operated by the [B] Foundation provides diabetic children with the opportunity to develop self reliance, increase their knowledge of diabetes management, and enjoy the camping experience. Approximately 1/3 of the children receive financial subsidy from voluntary donations. The following factors are pertinent to transactions involving the camp. (1) The Foundation qualifies for the "welfare exemption," but the camp does not make, assemble, or prepare any items. (2) The camp conducts regularly scheduled classes in a structured and formal manner covering a variety of topics including diabetes monitoring and control with attendance required of the campers. The classes are taught by qualified instructors consisting of physicians, nurses, and dietitians. (3) Employees' meals are credited toward meeting the wage requirements. (4) The camp store pays tax on all purchases of taxable toiletries and sundries, and sells them at cost.

Based on the above, (1) the camp is not a charitable institution qualifying for the exemption described in Regulation 1570(a), (2) the sales of employees' meals are taxable, (3) the camp qualifies as a school making exempt sales of meals to "student" campers, (4) the camp may take a deduction for the cost of tax-paid property resold, and (5) the camp is a retailer and should obtain a seller's permit and issue resale certificates to suppliers of items to be resold to the campers. 8/11/86. (Am. 2011-1)