California Revenue and Taxation Code

§ 24405

RTC § 24405 Effective Oct 11, 1993Div. 2 · Part 11 · Ch. 7 · Art. 2

Statute text

(a)In the case of other associations organized and operated in whole or in part on a cooperative or a mutual basis, all income resulting from or arising out of business activities for or with their members carried on by them or their agents, or when done on a nonprofit basis for or with nonmembers, shall be an allowable deduction. However, the deduction allowable under this section shall not apply to those cooperative or mutual associations whose income is principally derived from the sale in the regular course of business of tangible personal property other than water, agricultural products, or food sold at wholesale.

(b)For the purposes of subdivision (a), “food sold at wholesale” means a sale of food to anyone engaged in the business of selling food who holds a seller’s permit issued pursuant to Section 6066, and who at the time of purchasing the food either:

(1)Intends to sell it in the regular course of business.

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Legislative history

Amended by Stats. 1993, Ch. 1121, Sec. 2. Effective October 11, 1993.