New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 12 - RECEIPTS FROM THE SALE OF FOOD, FOOD INGREDIENTS AND PREPARED FOOD › Section 18:24-12.5 - Receipts exempt from sales tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The tax imposed on
				the sale of food and drink shall not apply to the following:
1. Food and drink sold to an airline for
				consumption in flight;
2. Food or drink
				sold in elementary or secondary schools at a restaurant or cafeteria located on the
				premises of such schools;
3. Food or
				drink sold to an enrolled post-secondary school student under the terms of a
				contractual agreement whereby the student does not pay cash when served. The sales
				may be made at a restaurant, tavern, or other establishment on the premises of the
				school which is a post-secondary school or in a fraternity, sorority, or eating club
				operated in connection therewith;
Example: A student who has paid a semester charge for room and
				  board or board alone has entered into a contractual arrangement for food and drink.
				  The arrangement provides for a fixed number of meals over the duration of the
				  contract, which are served in designated areas. The student is provided with
				  identification, which entitles the student to be served meals. This plan qualifies
				  for the exclusion.
4. Food or
				drink sold to an enrolled post-secondary school student who is not a participant in
				a student food plan as described in (a)3 above at a restaurant, tavern, or other
				establishment on the premises of the school of his or her enrollment or in a
				fraternity, sorority, or eating club operated in connection therewith. A student
				purchasing food or drink otherwise subject to the tax can be required to exhibit to
				the seller/cashier a valid student identification card at the time of purchase in
				order to document the exemption.
5. Food
				or drink provided as all or part of a food service project funded by government or
				by private nonprofit organizations to certain elderly or disabled persons for:
i. Meals especially prepared for and delivered to
				homebound elderly, age 60 or older, and to disabled persons; and
ii. Meals prepared and served at a group sitting
				at a location outside of the home to the otherwise homebound elderly persons, age 60
				or older, and otherwise homebound disabled persons.
6. Food and drink furnished by an employer to
				employees for the employer's convenience where assigned a money value for purposes
				of: inclusion in remuneration, which is the basis for computing the employer's
				contribution to the unemployment insurance fund; social security; or meeting minimum
				wage requirements (regarding employees of hotels and restaurants). To qualify for
				exemption, no cash may change hands as payment for the food and drink and the
				assigned value of such food and drink cannot be classified as income for Federal or
				New Jersey income tax purposes.
7. Food
				or drink included in the total charges made by a rest home, residential health care
				facility, nursing home, and boarding home licensed by the Department of Health,
				Department of Human Services, or the Department of Community Affairs to residents
				for board, shelter, and care.