Tax Commission
Restaurant and Customized Food Tax
Restaurant tax is an additional tax to sales and use tax that is collected on sales that take place at restaurants.
A restaurant is any retail establishment whose primary business is selling prepared food for immediate consumption. “Retail establishment” means a single outlet, whether or not at a fixed location. “Primary business” means the source of more than 50 percent of the revenues at the retail establishment.
Examples of restaurants include:
- full-service dining
- fast food
- coffee shops
- cafeterias
- luncheonettes
- soda fountains
- catering facilities
- clubs and taverns
- sidewalk vendors
- food concessions in malls
Restaurants do not include:
- retail establishments whose primary business is selling fuel or food items for off-premise, but not immediate, consumption; or
- theaters that sell food. A theater is an indoor or outdoor location for the presentation of movies, plays or musicals, but does not include a dinner theater. The food sales at dinner theaters or concerts is subject to the restaurant tax. Food courts, even if near a theater, are considered restaurants and are subject to the restaurant tax.
Customized Foods
The 1% restaurant tax is imposed on the sale of customized foods sold by a convenience store, gas station or grocery store.
“Customized food” is food that is prepared or heated by a seller for on-site or immediate consumption at the request of a customer. Does not include a customer only asking for a certain quantity.
Counties may adopt this tax to support tourism, recreation, cultural, convention, or airport facilities within their jurisdiction. It is assessed in addition to sales and use taxes on sales of food prepared for immediate consumption by retail establishments primarily selling prepared food.
See also, Restaurants with Grocery Food Sales
Tax Rates
Restaurant tax rate is based on County, up to 1.0%. For more information please refer to our Sales Tax Rates.
Exemptions and Adjustments
The following sales are exempt from this tax:
- Sales exempt from sales and use taxes
- Prepared foods sold by businesses primarily selling fuel
- Theaters other than dinner theaters
For more information about possible exemptions or adjustments please refer to our Publication 55, Publication 25- Exemptions, and Publication 25- Restaurant.
To apply for a sales-related tax account, use our Taxpayer Access Point.
Important: When applying, you must first select Sales and Use Tax to proceed.
For details on how to file, please review the filing instructions.
Filing and Payment Frequency
Due dates for sales and related taxes are based on the previous year’s sales tax liability, as determined by the Annual Sales Tax Liability Table.
Sales and related tax returns are due the last day of the month after the filing period. For example, returns for annual filers are due January 31. If a due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.
New businesses estimate the amount of sales and use tax liability when applying for a license and are assigned a filing status. The Tax Commission reviews accounts annually and notifies businesses in writing if the filing status changes.
For instruction on how to file please see filing instructions.
Forms and Publications
Statues and Rules
Revenue
Used by the county that imposed the tax