Hospitality Tax

Who would pay the 2% Hospitality Tax on prepared or modified foods & beverages?

  • Restaurants - Grocery and convenience stores (if they sell prepared or modified foods and/or beverages)
  • Other food service establishments - Bars and lounges

RESTAURANTS

What sales are affected by the Hospitality Tax for restaurants, bars and other food service establishments? All food and beverage sales.

CONVENIENCE STORES, GROCERY STORES, & OTHER FOOD SERVICE FACILITIES

What sales are affected by the Hospitality Tax for convenience stores, grocery stores, & other food service facilities? All food and/or beverage sales prepared or modified as a meal for immediate consumption.

EXAMPLES:

  • Fountain Drinks - Prepared sandwiches and salads - Sliced meat and vegetable trays
  • Heated foods (pizza, nachos, hot dogs, sandwiches, chicken, etc.)

What are some examples of prepared and/or modified food and beverages EXEMPT from Hospitality Tax which are sold by convenience stores and grocery stores?

Pre-packaged foods - Bulk or packaged cold deli products - Canned & bottled drinks

ADDITIONAL INFORMATION:

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