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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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T


550.0000 Taxable Sales of Food Products—Regulation 1603

Annotation 550.0103

(a) In General—Facilities for Consumption


550.0103 Food Served from Returnable Trays. In the interpretation of Regulation 1603(f), a problem arises when multiple servings of cold food are delivered on a returnable tray. The following are four situations which might arise:

(1) The food is on a large returnable tray and is in a single bulk quantity. For example, a wedding cake may be delivered on a tray.

(2) The food is on a large returnable tray, but the food has been prepared to be served in individual portions, as, for example, a wedding cake is sliced into individual portions.

(3) The food is on a large returnable tray but has been prepared to be eaten as individual servings as, for example, a tray of sandwiches.

(4) Each individual serving is in its own returnable container and is intended to be eaten from the container.

Situations (1), (2), and (3) are nontaxable, but (4) is a taxable transaction. 2/25/94.