January 24, 1983

You inquire whether meals sold at the ******************** ("Center") are subject to the sales tax on meals.

The Center is an incorporated nonprofit facility that gives mentally and physically disabled persons training in vocational and general life skills. It is licensed as a day care facility for the mentally ill or mentally retarded under General Laws Chapter 19, Section 29.

As part of the Center's culinary arts program, five to seven trainees prepare meals in the Center's cafeteria under the supervision of an instructor. These trainees are paid a percentage of the minimum wage that varies with the skill level of the individual trainee. The cafeteria is not open to the public; the meals are sold only to trainees, instructors, and other persons working at the Center.

General Laws Chapter 64H, Section 6(cc) exempts sales of meals "prepared by employees thereof and served...in any institution or private house licensed under section twenty-nine of chapter nineteen..."

Based on the foregoing it is ruled that meals prepared by salaried trainees of the Center and sold in its cafeteria are exempt from the sales tax.

Very truly yours,

/s/Ira A. Jackson

Ira A. Jackson
Commissioner of Revenue

IAJ:JXD:mf

LR 83-6