 |
Legislation has replaced the term "meals" with "prepared food." This regulation is currently undergoing review for amendment (Neb. Rev. Stat. § 77-2704.10). |
|
083.01 Retail sales of meals are taxable. (Reg-1-087, Food for Human Consumption.)
083.02 Sales and use tax applies to the gross receipts from preparing or serving of meals including of charges for food, wages, use of dishes, room service, silverware, glassware, chairs, tables, etc.
083.02A Single-use, disposable food service items provided to the customers as a part of a meal can be purchased for resale.
083.03 Charges made by a caterer or other purveyor of food or drink for furnishing bartenders, waiters, waitresses, chefs, etc., are taxable even though segregated at the time of billing. The sales and use tax is not applied to charges for announcers, hat check girls, doormen, or other persons not connected with the preparation or serving of food, meals, or beverages, provided that charges made for the services of such persons are separately stated on the invoice and the nature of the service is adequately described.
083.04 Fraternities, sororities, and other student societies with members residing at a common location and jointly sharing household expenses including meals are not considered to be selling at retail and meals furnished to members are exempt.
083.05 Persons operating summer camps for which a single charge is made to attend are not deemed selling meals at retail.
083.06 The sales and use tax applies to the sale of meals, food, or beverages by railroads, airlines, or other transportation companies while operating in Nebraska.
083.06A Sales of meals, food, or beverages delivered to such carriers in this state to be furnished to passengers without separate charge are retail sales to the carriers and are taxable in accordance with Reg-1-087, Food for Human Consumption, without regard to where served to passengers.
083.07 Where a percentage of the guest check representing gratuities or tips is added by the meal provider to charges for meals or dinners, these charges are taxable even though all or a portion of the amount is paid by the vendor to his or her employees.
083.07A Gratuities or tips of discretionary amounts given by the customers are exempt even though they may be charged to the customer's account and not paid directly to the server, waiter, or waitress at the time of sale or service.
083.08 Sales and use tax does not apply with respect to the sale of meals and food products, including soft drinks and candy, for human consumption when sold or served (a) to patients and inmates of hospitals and other institutions licensed by the state for the care of human beings, (b) by a church at a function of such church, or (c) by public or private schools, school districts, student organizations, or parent-teacher associations pursuant to an agreement with the proper school authorities, in an elementary or secondary school or any institution of higher education, public or private, during the regular school day or at an approved function of any such school or institution
083.08A Concession sales are generally taxable. (Reg-1-041, Concessionaire Sales)
083.09 Organizations which conduct fund-raising functions at which food is served are to compute the tax in accordance with Reg-1-090, Nonprofit Organizations. The organizations may purchase meals for such functions for resale.
083.10 Payments by an employer to a meal service provider for meals for employees are taxable if the employer pays the entire price, an amount per meal, or a percentage of the price of a meal. The payments made by an employer to the meal provider as subsidies or management fees, that are not included above, are not considered payments for the sale of property and are not taxable. The amount paid by an employee for the meal is taxable.
083.11 Organizations that accept food coupons may sell meals to the elderly, handicapped, recipients of supplemental security income, or participants of alcohol or drug addiction or rehabilitation programs exempt. (Reg-1-087, Food for Human Consumption.)
(Sections 77-2702.15, 77-2702.17, and 77-2704.10, R.S.Supp., 1993. May 14, 1994.)