Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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R

480.0000 RETAILER

Annotation 480.0028

480.0028 Catering Truck Operators. When a catering house hires a person to operate a catering truck to sell products on behalf of the catering house, the catering house rather than the operator of the truck is the retailer responsible for reporting and paying sales tax on the sales. Whether the catering house hires the operator to sell products on its behalf or the operator purchases property from the catering house for resale is a question of fact which is answered by the relevant evidence. For example, the catering house's paying a salary to the truck operator and making normal withholding from the salary for social security taxes, income taxes, unemployment insurance, and worker's compensation, is strong evidence that the catering house is the retailer of the property.

The following is evidence which indicates that the truck operator is the retailer. No one factor is determinative; the Board will make a determination based on all facts available.

(1) The contract between the catering house and the truck operator specifies that the operator is an independent contractor.

(2) The operator is not required to purchase all food and supplies from the catering house.

(3) The truck operator is not required to provide an accounting to the catering house for the operator's receipts. Rather, the income from the sales belongs to the operator.

(4) The operator prepares a Schedule C for income tax purposes.

(5) The truck operator rather than the catering house determines the sales price of the property for sale. 12/31/93.