North Carolina Will Tax Prepared Food Sold to College Students

Tuesday, December 17th, 2013

 
 
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North Carolina
General

The North Carolina Department of Revenue recently issued a directive discussing the taxability of prepared food sold to college students.

Beginning in 2014, North Carolina sales tax will apply to sales of prepared food to college students in dining rooms, cafeterias, and similar places operated by or on behalf of institutions of higher education. North Carolina repealed the exemption for these sales. The repeal goes into effect on January 1, 2014. Sales of prepared food to guests, faculty, and staff were not exempt. These sales will remain subject to tax.

This applies to sales of prepared food by, among others, institutions of the University of North Carolina, private institutions of higher education, and student organizations of these institutions. "Prepared food" is food (1) sold in a heated state or heated by the retailer; (2) consisting of two or more items mixed or combined by the retailer for sale as a single item; or (3) sold with eating utensils provided by the retailer.

http://www.dor.state.nc.us/practitioner/sales/directives/SD-13-1.pdf


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