Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 390.0080

390.0080 Free Meals to Members. Sales of food products to a fraternal organization for the preparation of free meals for its members are not taxable because food products are exempt from tax. However, the food products exemption does not include alcoholic and carbonated beverages, ice, and napkins, which are subject to sales tax as being consumed by the donor, in this instance, the fraternal organization. If the meals are prepared and served by a caterer under a contract with the fraternal organization; the amount paid by the fraternal organization for the free meals served to its members are subject to sales tax. 3/3/70.