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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 6363.6
6363.6. Meals served to residents or patients of institutions. There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, meals and food products for human consumption furnished or served to and consumed by residents or patients of the following:
(a) A health facility as defined in Section 1250 of the Health and Safety Code, which holds the license required pursuant to Section 1253, or is exempt from the license requirement pursuant to subdivision (a) of Section 1270, or is operated by the United States.
(b) A community care facility as defined in Section 1502 of the Health and Safety Code, which holds the license required by Section 1508, or is a residential facility selected by a licensee pursuant to Section 1506 and exclusively used for the reception and care of persons placed by the licensee, or is exempt from the license requirement pursuant to subdivision (f) of Section 1505, or is operated by the United States.
(c) A residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, that holds the license required by Section 1569.10 of the Health and Safety Code or is exempt from the license requirements pursuant to Section 1569.145 of the Health and Safety Code, or is operated by the United States.
(d) Any house or institution supplying board and room for a flat monthly rate and serving as a principal residence exclusively for persons 62 years of age or older and any housing that primarily serves older persons and that is financed by state or federal programs.
(e) An alcoholism recovery facility, as defined in Section 11834.02 of the Health and Safety Code, that holds the license required by Section 11834.30 of the Health and Safety Code. This subdivision shall apply to meals served by the facility on or after January 1, 1985.
(f) A drug abuse recovery or treatment facility, as defined in Section 11834.02 of the Health and Safety Code, that holds the license required by Section 11834.30 of the Health and Safety Code.
History—Added by Stats. 1968, p. 2555, in effect August 14, 1968, operative October 1, 1968. Stats. 1971, p. 3714, in effect December 14, 1971, operative January 1, 1972, added the words "furnished or" preceding "served" in the first paragraph of former section 6363.6. Stats. 1971, p. 3909 in effect December 17, 1971, relettered the section, corrected references to Welfare and Institutions Code, and added a subsection relating to certain patients released from state hospitals. Stats. 1971, p. 5143 (First Extra Session), operative January 1, 1972, repealed and reenacted the section and provided that it was the intent of the Legislature in enacting sections 22 and 23 of the act (applicable to section 6363.6) that the provisions of Stats. 1971, Ch. 1741 and Stats. 1971, Ch. 1807 of the 1971 Regular Session, both be given effect as they amend section 6363.6 of the Revenue and Taxation Code. Stats. 1974, Ch. 709, effective September 6, 1974, revised the exemptions and conformed the references to the Health and Safety Code. Stats. 1979, Ch. 1048, operative January 1, 1980, changed "patients and inmates" in first sentence to "residents and patients", added (c). Stats. 1987, Ch. 278, operative July 30, 1987, changed "residents and patients" in first sentence to "residents or patients", added (d) Stats. 1989, Ch. 919, in effect January 1, 1990, added subdivision (e). Stats. 1994, Ch. 702, in effect September 21, 1994, but operative January 1, 1995, substituted "the" for "such" after "placed by" in subdivision (b); added subdivision (c); relettered former subdivisions (c), (d), and (e) as (d), (e), and (f), respectively; and substituted "the" for "such" after "served by" in subdivision (d). Stats. 1995, Ch. 91, in effect January 1, 1996, added a comma after "use" and added "the following" after "patients of" in the first paragraph; substituted "11834.02" for "11834.11" after "Section", substituted "that" for "which" after "Code", and substituted "11834.30" for "11834.12" after "Section" in subdivisions (e) and (f).
Nonreusable hospital menus.—Paper menus used by hospital patients to order meals and returned to patients with meals are not exempt as component parts of those meals. American Hospital Supply Corp. v. State Board of Equalization (1985) 169 Cal.App.3d 1088.