# The California Department of Tax and Fee Administration oversees the collection of sales taxes.

*fintech · news · 2026-04-21 · Santa Clarita Valley Signal*

## Key points

- The Office of Tax Appeals ruled Henry's Catering's frozen lasagnas are taxable as hot food.
- The business owner lost the appeal due to lack of evidence proving lasagnas were sold as cold food.
- Retailers may sell similar items tax-free, but exemption requires detailed factual proof from sellers.
- A 1982 legislative loophole exempts custom software from sales tax, costing California $52.3 million annually.
- Tax exemptions, such as hot food versus cold food, are arbitrarily defined by California legislators and agencies.

**Companies:** Amazon, Walmart, Henry’s Catering
**Countries:** United States

[Read the full story on Santa Clarita Valley Signal](https://signalscv.com/2026/04/dan-walters-tax-policy-case-study-on-lasagna/)

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