Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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N

390.0000 NONPROFIT ORGANIZATIONS

Annotation 390.0090

390.0090 Meals Served to Low-Income Elderly. A nonprofit organization which provides low-income housing for the elderly, and which sells meals and food products in its dining room and cafeteria, is not exempt from the sales tax on the sale of meals under section 6374 if it fails to show that it receives funds from this state or the United States specifically for the sale of meals to low-income elderly persons at or below cost. FHA insurance of loans for construction of housing and other facilities does not satisfy the funding requirements of section 6374. Furthermore, meals sold to employees or the general public not meeting the definition of "low-income elderly persons" are subject to the sales tax. 3/14/73.