Current through September 9, 2024
(a)
General
Statement.
Section
12-412(13)
of the Connecticut General Statutes exempts the sale of food products for human
consumption from sales tax. The purpose of this regulation is to clarify what
is covered by that exemption.
(b)
Food Products for Human
Consumption.
For purposes of this regulation, "food products for human
consumption" mean all products normally consumed by human beings for nutritive
value or taste satisfaction, except that the following types of products are
not food products and are subject to tax:
(1) alcoholic beverages and mixes therefor
(excluding wines made for use in cooking).
(2) candy and confectionery, including
candied fruit, candy coated popcorn, chewing gum, breath mints and carob,
yogurt or chocolate covered nuts, but not including baking chocolate and
similar items made for use in cooking or baking.
(3) carbonated beverages, including
carbonated water.
(4) pet
food.
(5) tobacco products,
including chewing tobacco.
(6)
items which are combinations of food products and non-food products, unless it
is established that fifty percent or more of the sales price is attributable to
the value of the food products.
(7)
meals sold by eating establishments or caterers.
(c)
Meals Sold by Eating Establishments
or Caterers.
Meals sold by eating establishments or caterers are subject to
sales tax. The measure of the tax is the gross receipts from the sale of
meals.
(1) Meals. For purposes of this
regulation, "meals" mean food products for human consumption sold in such form
and such portions that they are ready for immediate consumption and are of a
type normally consumed on or near the location of the seller.
"Meals" include items described in the preceding sentence which
are sold on a take-out basis.
"Meals" do not include bulk sales of food products unless meant
for consumption on or near the location of the seller. Examples of such bulk
sales include the sale of ice cream in one-half gallon containers, whole pies,
cold sliced meat sold by the pound and cold salads sold by the pound. Examples
of sales which are not bulk sales include the sale of whole pizza pies and
buckets of fried chicken.
(2) Eating Establishment. For purposes of
this regulation, "eating establishment" means a place where meals are sold and
includes a cafeteria; catering hall; coffee and donut shop; fast food
restaurant, including one selling items such as fish and chips, fried chicken
pieces, hamburgers, etc.; ice cream shop; luncheonette; mobile food truck or
cart, including one selling items such as coffee, ice cream, pastry,
sandwiches, etc.; pizzeria; refreshment stand, including one located at a place
such as an amusement park, bowling alley, stadium, theatre, etc.; restaurant;
sandwich shop; snack bar; and a vending machine.
(3) Caterer. For purposes of this regulation,
"caterer" means a person who is engaged in the business of preparing meals and
either serving such meals on premises designated by his customer, or
delivering, but not serving, such meals to premises designated by his customer.
Such a person is a caterer, even if he does not provide the food products which
will constitute the meals.
(4)
Gross receipts from the sale of meals. For purposes of this regulation, "gross
receipts from the sale of meals" include all of the following:
(A) the listed selling price of the
meal.
(B) a separately stated
service charge, added in lieu of a gratuity, unless both of the following
conditions are met:
(i) the service charge
does not inure to the benefit of the seller (the use of such service charge by
the seller to reduce his expenses, including his payroll expense, is a benefit
to the seller.).
(ii) the service
charge is remitted, in its entirety, to the service personnel who provided the
meal service.
(C)
charges for the services of bartenders, busboys, waiters or other
personnel.
(D) charges for the use
of dishes, glassware or other items used in preparing or serving
meals.
(d)
Non-Taxable Sales of Meals.
The following types of sales are not subject to tax:
(1) Sales of meals made at a school or
college to students or staff thereof.
(2) Sales of meals to patients at a hospital,
home for the aged, convalescent home, nursing home or rest home.
(3) Sales of meals made to a charitable or
religious organization which holds a sales tax exemption or to an agency of the
United States, the State of Connecticut, or a Connecticut municipality,
provided all the following conditions are met:
(A) the seller directly charges the
organization or governmental agency for the meals.
(B) the organization or governmental agency
directly pays (by check on its own account) the seller.
(C) the organization or governmental agency
is not reimbursed, directly or indirectly, for its payment for the meals by
those who consumed the meals.
(4) Sales of meals made by a nonprofit
organization to an elderly, disabled or other homebound person if the meal is
delivered to the home of such person.
(5) Occasional sales of meals by a nonprofit
organization as described in section
12-426-17
of the Regulations of Connecticut State Agencies (Sales Tax Regulation No.
17).
(e)
Employee
Meals.
No tax is due from an employer who serves meals on his premises
to his employees, provided no separate charge or deduction is made therefor by
such employer.
(f)
Items Purchased for Resale.
An eating establishment or caterer which furnishes, with meals,
paper napkins, paper plates, plastic tableware, straws and similar non-reusable
items may purchase such items without payment of sales tax. Such an eating
establishment or caterer must furnish the supplier of such items with a resale
certificate.
