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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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M


360.0000 Miscellaneous Service Enterprises—Regulation 1506

Annotation 360.0165


360.0165 Meals to Students. A corporation operates a facility out of a former hotel that has been modified to suit its functions. In addition to classrooms and living quarters, the facility contains a lounge, nutrition area, mailroom, program offices, sport store, ballroom, medical area, gym, and exercise rooms for the participants' use. A 13-day and a 26-day program is provided for a lump-sum amount which includes meals provided to the student. As part of the program, participants are provided with a highly structured program of exercise, education, and eating.

There is no definition of a "school" to be found for purpose of the student meal exemption. The regulation refers merely to public or private schools, school districts, and student organizations. Applying the three requisites set forth in Regulation 1506(f), this facility meets the criteria set forth therein: (1) the program includes regularly scheduled classes as shown in published course schedules, (2) attendance at the sessions is required for successful completion of the courses, (3) classes are conducted or led by qualified instructors. Therefore, the facility is a school qualifying for the student meal exemption and no tax is owed on the sale of meals to the participants. 1/21/92.