New York Harbor Party Cruises Taxable When Price Includes Food and Drinks

Aug 7th, 2015

The New York Department of Taxation and Finance ruled that the amount a taxpayer charged for a party cruise around New York Harbor was taxable because a meal and drinks were included in the ticket price.

The party cruise was considered to be an establishment serving taxable food and beverages. The food and drinks provided were not incidental to the cruise because the effort and cost involved in providing the food and drinks to the cruise customers was significant. As a result, although the taxpayer was providing what it considered to be a sightseeing cruise, the entire cost of the cruise ticket was subject to sales tax.