Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 4 - Local Meals and Beverage Tax (280-RICR-20-70-4)
Section 280-RICR-20-70-4.7 - Ancillary Changes

Universal Citation: 280 RI Code of Rules 20 70 4.7

Current through September 18, 2024

A. Many retailers of catered events or functions, whether the function or event is held on the retailer's premises or off-site, list charges on their invoice or statement for services and non-food items provided in connection with the sale of meals and beverages. Certain charges are not subject to the one percent (1%) local meals and beverage tax if they are marginally related to the sale or service of a meal or beverage are reasonable in amount and are separately stated. These charges include, but are not limited to:

1. Valet parking;

2. Coat checking;

3. Fees charged or deposits forfeited for the cancellation of a function when no meal was served;

4. Slippage (parking of boats at harbor side facilities);

5. Transportation provided to or from a catered function;

6. Lodging provided in connection with a catered function or meal;

7. Entrance fees to nearby tourist attractions or sites of interest;

8. Ceremony fees if the ceremony is provided outside of the facility room where the meal is served;

9. Portable commodes or toilets furnished for an outdoor function;

10. Facility charge for lecture or instruction class when a meal is not included (incidental beverage and food provided is not considered a meal);

11. Cover charge when admittance to a facility is the only thing received (if cover charge includes a meal or beverage it is subject to tax);

12. Membership fees when member is charged an amount to comply with the minimum spending requirement for an agreed period;

13. Charges for entertainment (including bands, orchestras and disc jockeys);

14. Any minimum or attrition fees (as long as the contracted meals were not provided);

15. Decorations, ice sculpture or flowers;

16. Charges for any tents or canopies provided when a catered event or function is held outdoors; or

17. Audio visual equipment.

B. Other charges are deemed to be reasonably related to the sale or service of a meal or beverages and are taxable, regardless if separately stated or not. These charges include, but are not limited to:

1. Charges for glassware, linen, china or silverware;

2. Charges for tables or chairs;

3. Gratuities stated on an invoice or statement by the retailer;

4. Corkage or set up fees;

5. Any special labor or service charges such as bartender, chef's station or white glove service; or

6. Charges for the public room wherein the catered event or function is held.

C. The above lists of taxable and nontaxable ancillary charges are not exhaustive and are intended to be illustrative only. Charges for items of tangible personal property provided in connection with a meal that are not subject to tax under the Meals and Beverage Tax may be taxable under the Sales & Use Tax Laws. In addition, certain charges may also be taxable under the Hotel Tax (R.I. Gen. Laws § 44-18-36.1).

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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