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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 550.1650

(i) Non-Food Components of Exempt Meals


550.1650 Carbonated Beverage Sold as Part of Exempt Meal. When sold together for a single established price, the sale of a carbonated beverage is exempt as part of the sale of a student meal. If the single price for the combination of a carbonated beverage and the meal is listed on a menu or wall sign, a single price has been established. Where each item is charged separately, even though rung up at the same time, tax applies to the sale of the soft drink. 3/28/91.