South Carolina Code of Regulations › Chapter 117 - DEPARTMENT OF REVENUE › Article 11 - SALES AND USE TAX REGULATIONS › Section 117-337.2 - "Prepared Meals or Food" Defined

Current through Register Vol. 48, No. 6, June 28, 2024
(A) "Prepared meals or food" is food for
			 immediate consumption (based on the type of food and the type of location
			 selling the food) and is not eligible for the exemption under Code Section
			 12-36-2120(75),
			 but is subject to the full state sales and use tax rate.
"Prepared meals or food" are meals or food sold by a business,
				or from an identifiable location within a business, which advertises, holds
				itself out to the public (e.g., offers hot food or the ability to heat food,
				provides seating, or provides utensils with the meal or food), or is perceived
				by the public as being engaged in the sale of ready-to-eat food or beverages to
				customers for their immediate consumption on or off the premises. Such a
				business, or identifiable location within a business, may be mobile or immobile
				and may or may not provide seating accommodations for its customers. For
				example, "prepared meals or food" includes, but is not limited to (a) meals or
				food sold by a restaurant, cafeteria, lunch wagon or cart, lunch counter,
				cafeteria, ice cream stand, tavern, night club, or other similar places or
				businesses engaged in the business of selling prepared meals or food for
				immediate consumption, (b) meals prepared and delivered by a meal delivery
				service; (c) meals sold to or at congregate meal sites; (d) meals or food sold
				at a grocery store, convenience store or any other similar store for the
				purpose of eating at or near the store, such as meals or food sold with eating
				utensils (e.g., plates, knives, forks, spoons, cups, napkins) provided by the
				seller, (e) meals or food sold at hotels, motels, or other places furnishing
				accommodations; (f) meals or food sold at newsstands, gift shops, and snacks
				bars located in offices or other public or commercial buildings; (g) meals or
				food sold at movies theaters, opera houses, fairs, carnivals, stadiums,
				auditoriums, amphitheaters, or similar entertainment or sports facilities; and
				(h) food sold through vending machines.
(B) Exception: If a store, or an identifiable
			 location within a store, advertises, holds itself out to the public (e.g.,
			 offers hot food or the ability to heat food, provides seating, or provides
			 utensils with the meal or food), or is perceived by the public as being engaged
			 in the sale of ready-to-eat food or beverages to customers for their immediate
			 consumption on or off the premises and also sells food that is prepared for
			 home consumption, sold for home consumption, and is not the type of food
			 intended for immediate consumption, then such "home consumption" food is not
			 considered "prepared meals or food" and would be "eligible food" exempt from
			 the state sales and use tax under Code Section
			 12-36-2120(75),
			 provided it is not one of the foods listed above in Regulation
			 Regulation117-337.1(B)-
			 Items (1) through (10).
The following are examples of this exception:
(A) A grocery store has a deli/bakery that
			 provides tables, chairs, benches, booths, counters or an area where customers
			 may consume food in or near the store. In addition to other items, this
			 deli/bakery area sells loaves of baked bread (the bread it is not hot at the
			 time of sale).
The sales at retail of the loaves of bread are exempt from the
				state sales and use tax under Code Section
				12-36-2120(75),
				provided the sale is not for a party or gathering held at the store or
				delivered to a location other than a private residence.
(B) A coffee shop sells individual slices of
			 cake to be eaten with the coffee and other drinks sold at the shop. The shop
			 also sells entire sheet cakes.
The sale at retail of the sheet cake is exempt from the state
				sales and use tax under Code Section
				12-36-2120(75),
				provided the sale is not for a party or gathering held at the shop or delivered
				to a location other than a private residence.
(C) Some sales of meals or food may be exempt
			 from the sales and use tax under other exemption provisions. For example, Code
			 Section
			 12-36-2120(10)
			  provides exemptions from the sales and use
			 tax for (1) meals or foodstuff used in furnishing meals to school children
			 within school buildings on a nonprofit basis; (2) meals or foodstuff provided
			 to elderly or disabled persons at home by certain nonprofit organizations; (3)
			 prepared or packaged foodstuff sold to nonprofit organizations for the homeless
			 and needy; or (4) meals or prepared or packaged foodstuff sold to public and
			 nonprofit organizations for congregate or in-home service to the homeless,
			 needy, disabled adults over eighteen years of age or persons over sixty years
			 of age (provided the meals or packaged foodstuffs in this item (4) are eligible
			 for purchase with USDA food coupons). Code Section
			 12-36-2120(41)
			  exempts from the sales and use tax tangible
			 personal property, including meals or food, sold by certain nonprofit
			 organizations.