Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603
(b) RESTAURANTS, HOTELS AND BOARDING HOUSES
550.0380 Ice and Floral Decorations. Ice purchased tax-paid which is used to cool foods, beverages, or water and which is served to the individual customer along with such food or beverages is regarded as sold by the restaurant rather than used. Accordingly, the restaurant may take a deduction on its return for "Tax-Paid Purchases Resold."
Similarly, where floral decorations are purchased tax-paid and resold to a customer who has specifically requested such decorations, the restaurant is regarded as selling the flowers rather than using them and a like deduction may be taken on the return. 12/8/54.