D.C. Mun. Regs. tit. 9, r. 9-443

Current through Register 71, No. 45, November 7, 2024

Rule 9-443 - FOOD SERVED OR SOLD TO STUDENTS, PATIENTS, EMPLOYEES, FOOD STAMP RECIPIENTS, AND OTHERS

443.1

Meals and food products served, with or without charge, by a semi-public personal or professional service institution or organization (which holds a Certificate of Exemption issued under the provisions of the Act) to pupils, students, or patients are not subject to the sales tax whether or not prepared by such institutions. The furnishing of such meals and food products is considered to be exclusively for the purpose of maintaining, conducting, and rendering the service for which those institutions or organizations are organized and operated.

443.2

Meals and food products prepared and served by a convalescent home, educational institution, hospital, or similar institution which does not qualify as a semi-public institution under the Act (D.C. Code § 47-2001(r)) to students, teachers, doctors, nurses, and employees, where no separate charge is made, are not subject to the sales tax; Provided, that if the non-exempt institution purchases food prepared by others, those purchases shall be subject to the tax.

443.3

Sales of tangible personal property, including meals, foods, or drink, as provided in § 114(a)(1) of the Act by a semi-public institution, or any other entity, to employees, doctors, nurses, or the general public shall be retail sales subject to the sales tax.

443.4

Sales of tangible personal property, including meals and food products by any person other than a semi-public institution on the premises of semi-public or other institutions shall be subject to the tax.

443.5

Meals or food furnished to employees or others shall not be considered sales if those meals or food are furnished instead of cash and recorded as part of the employee's compensation, or if those meals or food are furnished to the employees or others for the employer's convenience.

443.6

Meals sold to employees in the same manner as meals shall be sold to the public, or meals which are sold in cafeterias, dining rooms, lunch counters, or other places operated for employees are taxable sales.

443.7

Sales of eligible foods, as defined in the Code of Federal Regulations at 7 CFR § 271.2, purchased with food stamps issued by the United States Department of Agriculture shall not be subject to the sales tax.

443.8

For purposes of this section, the term "eligible foods" means the following items:

(a) Any food or food product intended for human consumption except alcoholic beverages, tobacco, and hot foods and hot food products prepared for immediate consumption;

(b) Seeds and plants to grow foods for the personal consumption of eligible households;

(c) Meals prepared and delivered by an authorized meal delivery service to households eligible to use food stamps to purchase delivered meals, or meals served by an authorized communal dining facility for the elderly, for Supplemental Security Income households or both, to households eligible to use food stamps for communal dining;

(d) Meals prepared and served by a drug addict or alcoholic treatment and rehabilitation center to eligible households;

(e) Meals prepared and served by a group living arrangement facility to residents who are blind or disabled recipients of benefits under Title II or Title XVI of the Social Security Act; and

(f) Meals prepared by and served by a shelter for battered women and children to its eligible residents.

443.9

Food stamps issued by the United States Department of Agriculture shall not be used to purchase the following items:

(a) Alcoholic beverages;

(b) Tobacco or cigarettes;

(c) Household supplies;

(d) Soaps;

(e) Paper products;

(f) Medicines or vitamins;

(g) Any other nonfood items;

(h) Food that will be eaten in the store;

(i) Hot foods that are ready to eat, such as barbecued chicken; and

(j) Pet foods.

443.10

Sales of the following representative items purchased for immediate consumption shall be taxable when the foods listed are purchased with cash in the quantities indicated, but exempt when the foods are purchased with food stamps:

(a) Half-pint containers of milk;

(b) Candy bars (fewer than six);

(c) Can or bottled sodas (fewer than six);

(d) Cold sandwiches; and

(e) Certain other foods packaged and purchased for immediate consumption.

443.11

Sales of eligible foods such as those listed in § 443.10(a), (b) and (c) shall be exempt from sales tax if sold in larger quantities whether purchased with cash or food stamps.

443.12

If a sale combines taxable eligible food items, such as those listed in § 443.10, with nontaxable eligible food items, and if the purchase is to be made in part with food stamps and in part with cash, the vendor shall allocate the food stamps to the taxable food items first, then to the nontaxable food items.

For example: A customer arrives at the check-out stand with five dollars ($ 5.00) in food stamps and five dollars ($ 5.00) in cash. The amount of the purchase totals eight dollars ($ 8.00) of nontaxable eligible food in two dollars ($ 2.00) of taxable items first and then allocate the remaining three dollars ($ 3.00) of food stamps to the nontaxable food items. Thus, in this case, no sales tax would be collected.

D.C. Mun. Regs. tit. 9, r. 9-443

Commissioners' Order 54-1415, 1 DCR 4 (July 19, 1954); as amended by Final Rulemaking published at 34 DCR 8161 (December 18, 1987)