Ezel / Tax Rulings / CA

Could a restaurant buy disposable paper place mats for resale when each mat was used by only one patron?

Short answer Yes. The letter placed nonreusable, single-patron paper mats in the same class as paper napkins and allowed the restaurant to buy them tax-free with a resale certificate.
State
CA
Ruling
Annotation 550.0440
Tax type
Sales and Use Tax
Issued
1955-03-14
Issued by
California State Board of Equalization
Requested by
A supplier asking about paper place mats sold to restaurants (identity redacted)
Topics
restaurants resale certificate resale exemption
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1955. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1955
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This March 14, 1955 assistant-counsel letter addresses paper place mats that were nonreusable and intended for the individual use of a single restaurant patron. Its resale treatment depends on those stated characteristics and the cited historical ruling; reusable or shared mats are not decided. Current law controls. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A supplier asked how sales tax applied to paper place mats sold to a restaurant.

Under section A of Ruling 53, the letter said restaurants were regarded as selling paper napkins, straws, and similar items and could buy them tax-free by furnishing a resale certificate.

Nonreusable paper place mats intended for one patron's individual use were placed in that same class. The supplier could therefore sell those mats to the restaurant for resale.

Common questions

Did every restaurant place mat qualify?

The letter decided only mats that were nonreusable and used by a single patron.

How did the restaurant document the purchase?

By furnishing a resale certificate.

Why were the mats treated as resold?

The source classified them with paper napkins, straws, and similar single-use restaurant items.

Citations and references

  • Sales and use tax Ruling 53, section A (enclosed and cited)

Source

Original ruling text

550.0440

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

March 14, 1955

F--- P--- Co.
XXXX-- --- Avenue
--- ---, California

Gentlemen:
We regret the delay in answering your letters but the volume of correspondence we have has prevented our earlier reply. We believe you will find that your letter of September 27, 1954, was answered on October 21, 1954. You inquire concerning the application of sales tax to your sale of place mats to a restaurant. Pursuant to Section A of Ruling 53 (copy enclosed) a restaurant is regarded as selling paper napkins, straws and similar items and may purchase them tax free by furnishing a resale certificate. We regard paper place mats which are not reusable and which are for the individual use of a single patron as in the same class with paper napkins. Accordingly, such place mats may be sold to a restaurant for resale. Very truly yours,

Bill Holden
Assistant Counsel
BH:tj

cc:

Santa Monica - Auditing

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