This includes vendors who operate multiple lines of business from one outlet. If one of those multiple retail establishments under one roof falls within the definition of a restaurant, it will likely be subject to this tax. However, some vendors operate businesses that have multiple product lines, yet cannot be clearly divided into multiple retail establishments as described above. In those cases, if one or more of those lines of business sell food and beverage items, the line that accounts for the highest revenue will govern the application of the restaurant tax. 20 percent, the 1 percent tax would not apply.
Alcoholic beverages are subject to the tax .
Please see Tax Bulletin 2-94 for more information. The tax on sales of prepared food and beverages shall be collected on the sale price of the food or beverage if the county in which the food or beverage is served has imposed the tax. Thus, for example, even though a caterer's preparation facilities are located in a county that has imposed the tax, the tax may only be applied to those events served by the caterer which are located in a county that has imposed the tax. Restaurant sales of items other than prepared foods and beverages, such as souvenir T-shirts, are not subject to this tax. Accordingly, restaurants in the affected counties should be prepared to charge the current sales tax rate and the additional tax on restaurant sales, where appropriate, indicated in the table on page 4 of this Tax Bulletin.