I have a client who owns an ice cream business in CA and is wanting to know if they qualify to not charge/collect sales tax. I found this (pasted below) but can't figure out if they qualify or not. They only do to-go or delivery services (like doordash which will also pick up to-go). Any insight is much appreciated!
(c) Cold Food Sold on a "Take-Out" Order.
(1) General.
(A) Seller Meeting Criteria of 80-80 Rule. When a seller meets both criteria of the 80-80 rule as explained in subdivision (c)(3) below, tax applies to sales of cold food products (including sales for a separate price of hot bakery goods and hot beverages such as coffee) in a form suitable for consumption on the seller's premises even though such food products are sold on a "take-out" or "to go" order. Sales of cold food products which are suitable for consumption on the seller's premises are subject to the tax no matter how great the quantity purchased, e.g., 40 one-half pint containers of milk. Except as provided elsewhere in this regulation, tax does not apply to sales of food products which are furnished in a form not suitable for consumption on the seller's premises.
1. More than 80 percent of the seller's gross receipts are from the sale of food products, and
2. More than 80 percent of the seller's retail sales of food products are taxable as provided in subdivisions (a), (b), (e), and (f) of this regulation.
