Laws, Regulations and Annotations
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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
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550.0000 Taxable Sales of Food Products—Regulation 1603
Annotation 550.0824
(e) Caterers
550.0824 80/80 Rule. A caterer has gross receipts which are over 80% from the sale of food products and more than 80% of those sales are subject to tax. The caterer has no on-site eating facilities such as tables and chairs.
Regulation 1603 limits the 80/80 rule to "restaurants, fast-food establishments, concessionaires, soda fountains, and other similar establishments." A caterer with no on-site eating facilities is not subject to the 80/80 rule. Thus, sales of cold food "to go" by the caterer are not subject to tax. (Under certain circumstances, a person who does not own on-site eating facilities is nevertheless regarded as having on-site eating facilities, e.g., when the person operates in a shopping mall that offers shared eating facilities for a number of food vendors.) 9/15/87.