Organized Camps (Publication 127)
Other Meals

If a camp does not meet all of the requirements to qualify as a school or educational institution, the camp’s sales of meals are taxable. Even when the camp meets the requirements, sales of meals to non-students, such as staff and guests, are taxable.

With regard to sales of meals to employees, tax applies only if a specific charge is made for meals. A specific charge is made if the employee pays cash for meals consumed, the value of the meals is deducted from the employee's paycheck, the employee receives meals in lieu of cash to bring compensation up to legal minimum wage, or the employee has the option to receive cash for meals not consumed. An amount deducted for "room and board" from an employee’s wages is considered a specific charge. In the absence of any of these conditions, there is no specific charge when a value is placed on the meals as a means for reporting the fair market value of employees’ meals pursuant to state and federal laws or regulations. For more information see the section on employees’ meals in Regulation 1603, Taxable Sales of Food Products.

Meals provided free of charge
Camps are consumers of meals and nonfood products that are provided free of charge, such as meals given free to guests. If your staff prepares the meals, you do not owe any tax on food and noncarbonated beverages that are consumed or given away. You do owe tax, however, on the cost of nonfood items you give away (such as carbonated beverages) that you purchased for resale without payment of tax.

If you purchase meals from a food service company for resale without payment of tax, you will need to report tax on the cost of the meals that were given away (in addition to reporting tax on nonfood items purchased for resale and given away).

To report these purchases, include the purchase amount under "Purchases subject to use tax" on your sales and use tax return. "Use tax" applies to items that were purchased for resale in California, but were used or consumed by the purchaser instead of being resold. The use tax rate is the same as the sales tax rate. You must also keep records to support the amount you report on this line. You should track the cost of the consumed items on an actual basis, or establish a method for making a reasonable estimate and retain the estimated calculations in your records.

Meals sold to other camps
You may lease your facilities to another camp organization who will conduct their own classes and camp program using your facilities. If you sell meals to another camp organization, your sales of meals to the other organization are taxable unless you obtain a resale certificate. The camp organization that is leasing your facilities can provide you with a resale certificate for the meals they will resell to campers and others. Since the other organization is conducting the camp, they would be responsible for supporting the exemption for sales of nontaxable student meals (if applicable). The organization may issue a resale certificate only for the meals that they resell. Tax generally applies to sales of other meals, such as meals the organization provides free of charge to staff.