Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 390.0050

390.0050 Concession Stand Sales. The Associated Student Body of a high school requested information regarding the application of tax to the following items:

1. The Associated Student Body, as part of its fund raising projects to help meet the budget for sports and other school activities, operate a snack bar and sell items such as fountain soda, hostess cup cakes, candies and chips.

Since the snack bar appears to be open on a regular basis, whose sales are not on an intermittent basis, the student group is not a statutory consumer under Revenue and Taxation Code section 6361. Instead, the student group is the seller making retail sales of tangible personal property, and must pay sales tax to the Board on its taxable sales.

2. Several student clubs operate concession stands at the schools basketball games.

The regulation defines "irregular or intermittent" to include sales made at refreshment stands or booths at scheduled events of organized youth sports leagues.

3. A Pepsi Cola vendor places a vending machine on campus, collects and counts the money from the machine, and gives the Associated Student Body a rebate on each case sold.

Assuming the vending machine operator pays tax on his sales, the rebate represents a portion of the after tax profits. The Pepsi Cola vendor is the retailer of the sodas. The Associated Student Body is not required to report and pay tax on these sales. 3/31/92.