The following information is to be used as a guideline only. Effective February 1, 2010, a meals tax is to be levied on the purchaser of all prepared food and beverages served in and from the following places of business:
- Bed and Breakfast
- Bowling Alleys
- Carry Outs
- Coffee Shops
- Dining Room
- Dinner Theaters
- Doughnut Shops
- Drug Stores
- Eating Houses
- Food Concessions
- Gas Stations / Convenience Stores
- Lunch Counters
- Lunch Wagons / Lunch
- Movie Theaters
- Restaurants / Fast Food Chains
- Snack Bars
All prepared food and beverages, hot or cold, are taxable whether intended to be consumed on the seller's premises or not. The rate of tax is 6% of the gross amount paid for food and beverages. For the purpose of the food and beverage tax, food is defined as "any and all edible refreshments or nourishment, liquid or otherwise including alcoholic beverages, purchased in or from a restaurant or from a caterer, except snack foods."
Please refer to our provided examples of taxable and non-taxable foods / beverages.
Collecting On Taxes
All of the businesses that come under the definition of restaurant or caterer and that are partially listed on page one must collect this tax from their customers when the charge for the food and beverage is paid. The tax is to be collected whether the customer pays in cash or by credit card. The seller adds the tax to the gross amount and collects the total from the customer.
Tips are not taxable unless:
- The seller keeps part or all of a tip.
- The seller adds a specific amount or percentage greater than 20% to the gross price of the food and requires the customer to pay this amount.