Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014

Sales and Use Tax Annotations

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590.0000 VENDING MACHINE OPERATORS—Regulation 1574

Annotation 590.0370

590.0370 School Partnership. An agreement between a school/school district and a vending machine operator whereby the vendor receives 80% of the proceeds of the machines, services the machines, and reserves the right to remove the machines from the premises upon 30 days written notice does not create a partnership between the operator and the school. The 20% of the proceeds paid to the school is in the nature of payment for space and utilities, i.e., rent calculated on a percentage basis. Accordingly, the proceeds from the sale of fruit drinks through the machine are not exempt as sales of food products by a school to its students. 9/19/91.