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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
T
550.0000 Taxable Sales of Food Products—Regulation 1603
Annotation 550.0540
(b) Restaurants, Hotels and Boarding Houses
550.0540 Tour Operator. A taxpayer operates a seasonal business for travel. For one type of tour, it takes possession of a hotel for a two week period. It purchases food and supervises the preparation of meals by hotel employees. It sells tour packages which include room rental, food, beverages and travel costs. During the two week period the hotel is not open to the general public. All payments by tour patrons are made to the taxpayer, and the taxpayer makes all payments to the hotel.
The taxpayer is regarded as the seller of the meals and beverages and is responsible for sales tax on those sales. 7/11/94.