Food Service, Hotel, Motel
All food and drink sold by the following establishments are taxable:
- restaurants
- snack shops
- carryout shops
- pushcarts
- and other sellers of food and drink as specified by statute
The sale of meals and beverages is subject to sales tax. The vendor of meals and drinks must pay the tax on purchases of most products used or consumed in the operation of the business. This includes fixtures, linens, silverware and glassware. Food or beverages used by a business or commercial entity, such as coffee served as a courtesy to customers or employees, is subject to state sales tax.
Sales tax is collected and remitted for all units rented for less than 30 consecutive days, including hotels, motels, bed and breakfast inns, condominiums, campsites and time shares of any lodging units.
The 30-day rental rule applies to any customer who pays for the room. The Department of Revenue policy is not to restrict the 30-day rental to an individual or the same room, but to adhere to the 30 consecutive days of paid use by any single payor or customer.
If a lodging owner or a management company sells rooms to an out-of-state travel agency, sales tax is due and should be collected from the local owner or manager even if the out-of-state travel agency is reselling some or all of the rooms to the user or to another travel agency.