Cohousing-L Mailing List: Sales Tax on Common House Meals

[Dan Suchman (71756.2661]

I've noticed in several posts to Cohousing-L mention of groups setting up
separate entities to administer Common House meals, usually for "tax reasons".
I would greatly appreciate any detailed information available on this issue,
especially answers to the following:

1.  Does administration of Common House meals by the cohousing condominium,
homeowners' or cooperative association (as opposed to a separate entity) have
potential adverse federal income tax consequences to the association or its
members?

2.  How, exactly, have other cohousing groups used separate entities to avoid
state sales tax on meals:

        A.  What exemptions under state law were relied upon and what is the
exact wording of those exemptions?

3.  Under such systems, how are meals costs allocated among cohousing
member/residents/participants?

        A.  Do any meals participants or non-participants subsidize others,
either  intentionally or in effect?

Thanks in advance for the information!

Dan Suchman
Winslow Cohousing Group
Bainbridge Island, WA