Continental Breakfast Taxable as Part of Hotel Service in New York

Aug 2nd, 2016

The New York Tax Appeals Tribunal determined that continental breakfast served by a hotel was included as part of the hotel service.

The hotel was therefore required to collect tax on the entire charge for the hotel service, which is taxable in New York.

Additionally, the hotel was not allowed to claim a resale exemption for its purchases of continental breakfast items that it would later provide to its customers. The tribunal determined that the hotel was not reselling the food, but was purchasing it to be used as a part of its service.

http://www.dta.ny.gov/pdf/decisions/825405.dec.pdf