The sale of alcoholic beverages at a fundraiser is taxable. Sales tax is due on the total amount of the sales of beer, wine, and liquor. If an organization pays sales tax on alcoholic beverages when purchased and provides the alcoholic beverages at the fundraiser at no additional charge to attendees, then no additional sales tax is owed. The organization purchased beer and wine for the fundraiser and paid sales tax on their purchase. When the beer and wine are served at no additional charge to the attendees, no additional tax is due.
Tax is due on the ticket price charged which approximates the fair market value of the food.
A booster club sells hot dogs, bags of chips, candy bars, and cans of soda at a school athletic event. Tax is due on the total gross proceeds from the sales of these items. A nonprofit organization holds a fundraising fashion show where dessert and coffee will be served. Sales tax will be due on the fair market value of any food or drink served. The fair market value may be determined by quotations from caterers or other reasonable method.