fintech / news / / Santa Clarita Valley Signal
The California Department of Tax and Fee Administration oversees the collection of sales taxes.
The Office of Tax Appeals ruled Henry's Catering's frozen lasagnas are taxable as hot food.
KEY POINTS
- 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
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