337.4 Examples.

The following examples are provided to assist in understanding the above provisions of this regulation: (a) Sales at retail of food delivered to offices and businesses are subject to tax at the full state rate. (b) Sales at retail of food delivered to day care centers and similar facilities are subject to tax at the full state rate. (c) Sales at retail of bottled water delivered to an individual’s home are exempt from the state sales and use tax under Code Section 12–36–2120(75). However, the lease of a water cooler unit to a residential customer is subject to the full state rate. Sales at retail of bottled water delivered to a commercial enterprise are subject to the tax at the full state rate. The lease of a water cooler unit to a commercial enterprise is also subject to the full state rate. (d) Sales at retail of ground coffee, creamer, sugar, tea bags and other ‘‘coffee service’’ products delivered to a commercial enterprise are subject to the tax at the full state rate. (e) Sales at retail of drinks, coffee supplies, and snacks by an office supply store are exempt from the state sales and use tax under Code Section 12–36–2120(75), unless shipped or delivered to a location other than a private residence. Shipments or deliveries to a location other than a private residence are subject to the full state rate. (f) Sales at retail by a coffee shop of packaged cold sandwiches, salads, and containers of cut fruit, cookies, muffins, donuts, slices of nut bread, cupcakes, brownies, whole fruit, or similar food products sold individually are subject to the tax at the full state rate. However, sales at retail of these same food products by the loaf or tray are subject exempt from the state sales and use tax under Code Section 12–36–2120(75) unless such loaf or tray is sold for a party or gathering held at or near the coffee shop or is delivered to a location other than a private residence. Sales at retail of these products by the loaf or tray for a party or gathering held at or near the coffee shop or that are delivered a location other than a private residence are subject to the tax at the full state rate. (g) Sales at retail at a location that contains both a restaurant and a convenience or similar store under one roof are taxed at the full state rate for sales from the restaurant portion of the business and are exempt from the state sales and use tax under Code Section 12–36–2120(75) for sales from the convenience or similar store portion of the business, unless an exception discussed previously in this regulation applies. For more detailed information, see the above sections of this regulation concerning restaurants and convenience or similar stores. (h) Sales at retail of loaves of bread baked in and sold at a bakery in a grocery store are exempt from the state sales and use tax under Code Section 12–36–2120(75), provided the loaf of bread sold is not ‘‘hot food.’’