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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 6359.4


6359.4. Vending machine operator. [Repealed by Stats. 1983, Ch. 323, in effect July 21, 1983, operative August 1, 1983.]


6359.4. Vending machine operator. (a) Any vending machine operator is a consumer of, and shall not be considered a retailer of, food products which sell at retail for fifteen cents ($0.15) or less and which are actually sold through a vending machine.

(b) Notwithstanding subdivision (a), any vending machine operator is a consumer of, and shall not be considered a retailer of, food products, other than beverages or hot prepared food products, which are sold through a coin-operated bulk vending machine if the amount of each sale is twenty-five cents ($0.25) or less. For purposes of this subdivision, "bulk vending machine" means a vending machine containing unsorted food products, other than beverages or hot prepared food products which, upon insertion of a coin, dispenses those food products, including candy and confectionery, in approximately equal portions, at random, and without selection by the customer.

History—Added by Stats. 1985, Ch. 1424, effective January 1, 1986. Stats. 1987, Ch. 1300, in effect September 28, 1987, operative January 1, 1988, added "(a)" before first paragraph and added paragraph (b). Stats. 1991, Ch. 236, in effect July 29, 1991, added ", including candy and confectionery," after "food products" in subdivision (a), added "including candy and confectionery" after "food products" in the first sentence and after "food products" in the second sentence of subdivision (a). Stats. 1993, Ch. 257, in effect January 1, 1994, deleted "including candy and confectionery" following "food products" in Subdivision (a) and in the first two references to food products in subdivision (b), and added commas preceding and following "including candy and confectionery" in the third reference in (b).

Paper cups in vending machines.—Although under Section 6359.4, plaintiff was a consumer of tangible property sold through its vending machines, plaintiff's paper cups containing beverages dispensed through its vending machines were nevertheless exempt nonreturnable containers under Section 6364(a). Canteen Corp. v. State Board of Equalization (1985) 174 Cal.App.3d 952.