Usually the fair market value is the price of admission or a donation to attend the fundraiser or to purchase and prepare the food. If the admission or a donation exceeds the fair market value of the food or drink, fair market value may be determined by any reasonable method. When food is provided by a caterer, the sales tax is paid by the caterer, who may add the tax to the customer's bill. If the fundraising organization claims a sales tax exemption for resale on the caterer's purchase, then the sales tax must be paid by the organization. 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.