Was prepared food taxable when customers picked it up for banquets, parties, or weddings and served it themselves elsewhere?

Plain-English summary

A seller prepared food for banquets, parties, weddings, and similar events. Customers picked it up at the seller's business and served it themselves elsewhere.

The letter said the food-product exemption did not extend to meals served on or off the retailer's premises. But this seller was preparing food, not serving the meals, so the sales were exempt under the stated facts.

The seller also asked about box lunches prepared for picnics or airplane service. Those sales were exempt unless the lunches were sold in a form for consumption using tables, chairs, counters, trays, glasses, dishes, or other tableware provided by the retailer.

The annotation metadata calls the banquet food cold; the complete supporting letter does not specify a temperature, so this page does not make cold food a condition of the holding.

Common questions

Did the seller provide banquet service at the event?

No. The purchaser picked up the food and served it elsewhere.

Were box lunches always exempt?

No. Retailer-provided eating facilities or tableware could change the result under the cited rule.

Did the supporting letter require the banquet food to be cold?

It does not say so, despite that word appearing in the annotation metadata.

Citations and references

• Sales and use tax Ruling 52(D) (enclosed and cited)
• Sales and use tax Ruling 53(B) (enclosed and cited)

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/550-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/550-1480.pdf

Original ruling text

550.1480

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001
TELEPHONE (916) 445-6450

May 6, 1954
REDACTED TEXT
Attention:

Mr. REDACTED TEXT
Accountant

Your letter of March 22
Account No. REDACTED TEXT

Gentlemen:
You inquire concerning the application of sales tax to food prepared for banquets, parties, weddings, etc., but picked up by the purchaser at your place of business and served by the purchaser. As indicted in Section D of Ruling 52 (copy enclosed), the food product exemption does not extend to meals served on or off the premises of the retailer. In this case, however, you are not serving the meals. Rather you are merely preparing the food. Accordingly, the sales in question are exempt from the tax. You also ask concerning sales of box lunches which are prepared for picnics or for airplane service. As indicated in Section B of Ruling 53 (copy enclosed), the tax does not apply to sales of box lunches unless they are sold in a form for consumption at tables, chairs, or counters or from trays, glasses, dishes, or other tableware provided by the retailer. Yours very truly, Bill Holden Assistant Counsel BH:ja cc:

Oakland – Auditing

BOE-1137 REV. 11 (7-02)