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Business Taxes Law Guide—Revision 2024

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 4. Exemptions

Article 1. General Exemptions

Section 6363


6363. Meals. There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, meals and food products for human consumption furnished or served to the students of a school by public or private schools, school districts, student organizations, parent-teacher associations, and any blind person (as defined in Section 19153 of the Welfare and Institutions Code) operating a restaurant or vending stand in an educational institution under Article 5 (commencing with Section 19625) of Chapter 6 of Part 2 of Division 10 of the Welfare and Institutions Code. The term "food products" as used in this section has the meaning ascribed to it in Section 6359.

The exemption provided by this section shall not apply when the meals or food products are sold for consumption within a place, the entrance to which is subject to an admission charge, except for national and state parks and monuments.

History—Added by Stats. 1943, p. 2456, operative July 1, 1943. Stats. 1947, p. 2029, operative July 1, 1947, added provisions respecting food products. Stats. 1955, p. 2104, in effect September 7, 1955, added provisions respecting blind persons, and rearranged wording. Stats. 1963, p. 3763, in effect September 20, 1963, deleted the provisions relating to "employers or employee organizations." Stats. 1965, p. 3131 in effect September 17, 1965, deleted "or teachers." Stats. 1970, p. 1059, in effect November 23, 1970, substituted reference to Welfare and Institutions Code for reference to Government Code, deleted wording following "in section 6359" from last sentence of first paragraph, and added second paragraph. Stats. 1971, p. 3713, in effect December 14, 1971, operative January 1, 1972, added the words "furnished or" preceding "served to students".

Construction of prior exemption.—This section constitutes a change in the law rather than a clarification of former Section 2(e) of the Retail Sales Tax Act, under which the tax did not apply to sales of meals served by employers or employee organizations exclusively to employees. An employer who served meals to its employees and the employees of subcontractors did not serve meals "exclusively" to its employees and was required to pay tax on the sale of the meals to employees and others. Twaits v. State Board of Equalization (1949) 93 Cal.App.2d 796.