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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 550.1100

(f) Social Clubs, Fraternal and Religious Organizations


550.1100 Surcharges. Surcharges collected on behalf of an organization who, by prearrangement, has a retailer collect a fixed sum per cocktail, etc., sold to members and guests of the organization are not gross receipts from the sale of the cocktails, providing:

(1) The patrons are formally notified that such a sum is to be collected;

(2) The amount is specifically stated in the formal notice;

(3) The total amount collected is paid over to the organization, and;

(4) The function during which the sums are collected is not open to the general public. 8/6/65.