Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603
550.0835 Full Service Catering. A full service catering company, in addition to food or the service of food, may provide many items, such as tents, dance floors, etc., when events are scheduled. They also provide labor to install these items and also service to install temporary lighting etc. Other items provided include video screens, entertainers, etc.
If a tent, subflooring, Astroturf, canopies, and generators and air compressors are rented to provide a customer with a temporary sheltered place in which to provide a meal, the charge for the facility is included in the taxable gross receipts from the sale of the meals. The facility is not leased to the client, but is used in connection with the sale of the meals. The taxable gross receipts also includes the labor to install the items, the temporary lighting, heating, electrical fixtures as well as the charge for the painter who paints the facility.
Tax does not apply to a charge for entertainers or for the sublease of tax-paid equipment, such as dance floors, stages, screens, garden fountains, video screens, podiums, gazebos, and p.a. systems, when the customer has specifically ordered the entertainers or equipment and they are not customarily provided in connection with the preparation and furnishing of food. 1/17/92. (Am. M98–3).