Organized Camps (Publication 127)
Purchases

Tax does not ordinarily apply to your purchases of disposable serviceware such as paper plates, paper napkins, plastic utensils, straws, disposable to-go containers, and similar items that are of a non-reusable character which you furnish with the food and beverages you sell. These items are considered sold with meals even when your sales of meals are nontaxable sales of student meals. As a result, you can issue a resale certificate to purchase these items.

Camps are consumers of property used to serve meals such as reusable plates, silverware, glasses, table linens, etc. Camps are also consumers of other supplies and equipment used in the operation of the camp and tax applies to their purchases of these items. This includes sports equipment and classroom supplies. You cannot issue a resale certificate for the purchase of these items. If you purchased these items from California suppliers, you may be charged California tax on your purchase. However, if you purchase assets and consumable supplies from a vendor located outside California and you are not charged California tax, you must pay California use tax on your purchase. The use tax rate is the same as the sales tax rate and is intended to protect California merchants who otherwise would be at a competitive disadvantage when out-of-state sellers make sales to California customers without charging tax.

To report these purchases, include the purchase amount under "Purchases subject to use tax," on your sales and use tax return for the reporting period that includes the date when you first used or stored the item in California.