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Sales to Restaurant Employees
According to the Wisconsin Department of Revenue, effective October 1, 2009, a sales and use tax exemption is provided for sales of and the storage, use, or other consumption of candy, soft drinks, dietary supplements, and prepared foods, and disposable products that are transferred with such items, furnished for no consideration (i.e. at no cost) by a restaurant to the restaurant's employee during the employee's work hours. A restaurant’s sales of such items are subject to tax. (Section 77.54(20r), Wis. Stats., as created effective October 1, 2009 by 2009 Wis. Act 2.)
Under prior law, certain food, food products, and beverages and disposable products that were transferred with such items were exempt from Wisconsin sales and use tax if the items were provided by a restaurant to the restaurant’s employees during the employee’s work hours, regardless of whether the restaurant sold the items to the employee or furnished the items to the employee for no consideration. (Section 77.54(20)(c)4m., Wis. Stats. (2007-08), repealed effective October 1, 2009 by 2009 Wis. Act 2.)
Changes in Milwaukee Area
Effective October 1, 2009, the local food and beverage tax applies to sales of candy, soft drinks, and prepared food that take place in Milwaukee County. Click here for more detailed information on this change (including examples and definitions) from the Department of Revenue.
A local food and beverage tax rate will be increasing this summer for businesses in the Wisconsin Center District area. Effective July 1, 2010 the 0.25% local food and beverage tax will be increased to 0.5%. |
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